Finance Minister Amir Khasru Mahmud Chowdhury told the parliament today that Bangladesh Bank has not issued any directive regarding the reopening or closure of S Alam Group’s commercial operations, which remain suspended due to loan defaults.
Responding to a question from MP Hasnat Abdullah, who asked how the group could be considered for reinstatement without repayment of dues and whether any compromise had been reached, the minister said: “In BNP’s politics, there is no scope for compromise with anyone in economic activities.”
The minister added that whenever BNP was in government in the past, no questions have arisen regarding financial discipline, macroeconomic strategy, macroeconomic stability, or stock market irregularities.
He also expressed optimism about recovering defaulted funds, saying those who had fled with bank money had been sued and legal action was ongoing. Recovery efforts, he said, were being pursued both through intergovernmental channels and private recovery firms.
In a starred question, Cumilla-4 lawmaker Hasnat said Islami Bank Bangladesh Limited alone holds defaulted loans of around Tk 92,000 crore, of which about Tk 80,000 crore is linked to S Alam Group.
He also noted that Janata Bank holds about Tk 25,000 crore in defaulted loans associated with Beximco Group, and asked about the government’s steps to recover laundered money and projected recovery in the current financial year.
In response, the finance minister said the most important step in recovering assets illegally transferred abroad is sending a Mutual Legal Assistance Request (MLAR) to relevant countries under the Mutual Legal Assistance in Criminal Matters Act, 2012.
He said a joint investigation team comprising officials from the ACC, CID, CIC, Customs and Intelligence has filed cases in Bangladeshi courts over alleged money laundering by S Alam Group and Beximco Group.
MLARs have been sent to four countries -- British Virgin Islands, Cyprus, Jersey and Singapore -- for S Alam Group, and to the UK and UAE for Beximco Group, the minister added.
He added that civil and criminal proceedings are both being pursued, along with asset tracing through four international law firms. However, he said recovery is a complex and lengthy legal process, and it is not yet possible to estimate how much money can be recovered within the current or next financial year.
In a separate reply, the minister said the Bangladesh Financial Intelligence Unit (BFIU) had frozen Tk 243.60 crore across 662 bank accounts and Tk 813.56 crore across 227 BO accounts linked to individuals associated with S Alam Group.
Later, 11 intelligence reports were sent from the BFIU to the law enforcement agencies for further investigation regarding the transactions of S Alam Group. In this context, the government formed a joint investigation team regarding the money laundering case of S Alam Group.
He added that a total of 27 cases have been filed against S Alam Group in the courts of Bangladesh by the said investigation team, out of which charge sheets were submitted in three cases.
Based on the information received by the Joint Search and Investigation Team, the court has seized fixed assets (land, flats, houses) worth Tk 4,264 crore of S Alam Group in Bangladesh and shares worth Tk 6,692.34 crore of 2,680 bank accounts and Tk 24,810.88 crore of 171 companies.
In addition, the Bangladesh court has issued a judgement to seize one house, 62 bank accounts and assets of 14 companies and 6 trust funds worth Tk 3,222.70 crore abroad.
In this manner, the banks affected by the illegal laundering of S Alam Group's defaulted loan money abroad have signed a non-disclosure agreement and started the process of appointing four international law firms on No Recovery No Fee terms to recover their loan money.
"Through the above-mentioned activities, the path to recovery of S Alam Group's illegally laundered money abroad has been paved. Furthermore, no steps have been taken by the BFIU to activate the bank accounts of S Alam Group," he said.
“In addition, Bangladesh Bank has not issued any instructions regarding the resumption or closure of the commercial activities of S Alam Group, which was closed due to default,” the finance minister said.
