Islami Bank suspends officer who filed ACC loan-fraud case

Islami Bank Bangladesh PLC has suspended one of its own officers after he filed a complaint with the Anti-Corruption Commission (ACC) accusing S Alam Group Chairman Saiful Alam, former president Mohammed Shahabuddin and others of embezzling around Tk500 crore through loan fraud.

Mohammad Yasin Ali, first assistant vice president of the bank's Foreign Exchange Corporate Branch, was suspended on 11 August and sent to the bank's training academy. A senior human resources official said the action was taken because Yasin had filed the complaint without approval from the bank's head office.

The complaint and its allegations

Yasin submitted a written complaint to the ACC on 29 June, accusing 38 individuals and entities, including S Alam and former president Shahabuddin, of involvement in the alleged embezzlement of around Tk500 crore through loan fraud involving shell companies.

The complaint alleged that the accused, acting in collusion, created fake documents through fraud and forgery to embezzle around Tk500 crore from Islami Bank and launder the money abroad. It also claimed that the alleged fraud had contributed to the bank's financial difficulties.

Why the bank acted

Islami Bank acting chairman Mohammad Zahir Hossain, who is also an executive director of Bangladesh Bank, said the officer filed the complaint without head-office approval. For this reason, he said, human resources temporarily suspended him, and a three-member committee has been formed.

Islami Bank acting managing director Md Altaf Hossain said there is no provision in the bank to directly file a complaint with the ACC, and that the bank files cases through the court.

The officer's account

Yasin confirmed that he had filed the complaint following instructions from senior officials. He declined to comment when asked why he had been suspended or what conditions were imposed during his suspension.

Yasin told the ACC that the money was embezzled when Shahabuddin was a director of the bank and after S Alam secured majority stake in the bank.

The bank's position on the accused

Mohammad Zahir Hossain said former president Shahabuddin was a former vice chairman of Islami Bank and served as a director on behalf of a company. He added that if there are allegations of irregularities against him, a case can certainly be filed, but it must be supported by information and evidence.

What this means for readers

The episode underscores how internal whistleblowing can collide with corporate procedure. For the public, it is a reminder that allegations of loan fraud and embezzlement remain allegations until a regulator or court reaches a finding, and that a complaint alone does not establish wrongdoing.

Readers who encounter investment or banking offers can check a firm's registration in the relevant regulator's official register and compare official domains and contact details to spot possible clones. Absence from a warning list does not by itself prove that a firm is safe.