Islami Bank files ACC complaint against ex-president Shahabuddin

The Islami Bank has filed a money embezzlement complaint with the Anti-Corruption Commission (ACC) against the previous president and Awami League leader Mohammed Shahabuddin, and 37 others.

Mohammad Yasin Ali, first assistant vice-president of Islami Bank's Foreign Exchange Corporate Branch, submitted the written complaint on 29 July, asking the corruption watchdog to thoroughly investigate the crime.

Islami Bank has found the irregularities after conducting audits through four firms, it said.

It is worth noting that Shahabuddin stepped down as the 22nd president on 24 July, citing illness.

As per the ACC complaint, Shahabuddin, S Alam and 37 others worked in coordination to embezzle Tk500 crore from the funds of Islami Bank Banlgadesh PLC.

Between 2017 and 2023, Shahabuddin and S Alam used their influence at Islami Bank to approve loan proposals worth Tk500 crore in favour of Suprabh Composite Knit Ltd, which was eligible for maximum Tk100 crore loan.

Other regulations were also violated in the loan disbursements for the weak private sector entity.

Adequate guarantees and collaterals were not secured, and proper verification was skipped. Suprabh Composite Knit Ltd later failed to repay the loans despite repeated written demands.

Suprabh Composite Knit Ltd and its managing director Mohammad Yunus, also known as Alhaj Md Yunus Badal, have been named as the principal accused in the ACC complaint.