2 shell companies in Ctg drained Tk 2,343cr from Islami Bank

Islami Bank Bangladesh granted huge loans to various entities from its Chattogram branches. But there's just one problem: thousands of crores were disbursed to firms that exist only on paper.

An investigation by The Daily Star has uncovered that loans worth Tk 2,343 crore were given to two entities in the port city that are merely shell companies.

Ansarul Alam Chowdhury and Mohammad Golam Sarwar Chowdhury, relatives of Mohammad Saiful Alam, who owns the Chattogram-based conglomerate S Alam Group, are at the centre of the anomalies.

These two individuals allegedly circumvented banking norms to secure the loans from Islami Bank's Chaktai branch in Chattogram, according to multiple audits by the Bangladesh Bank.

Both companies claimed to be in the edible oil trade, but no business activities, such as any operational oil refinery, were found at their registered addresses

Besides, insiders alleged that the two borrowers obtained the loans using their connections with the S Alam Group, which took over Islami Bank in 2017.

According to bank documents, both companies claimed to be in the edible oil trade, but no business activities, such as any operational oil refinery, were found at their registered addresses.

Locals confirmed that these companies did not conduct any operations in those areas.

Established in 2020 with a capital of Tk 8 lakh, Inherent Trading and Impex Limited was able to secure a huge loan of Tk 1,289.53 crore within two years.

These loans were disbursed in four instalments by the Chaktai branch, with minimal collateral backing the substantial amount.

Alam established Inherent Trading and Impex Limited, supposedly based in Chattogram's Khatunganj wholesale market, while Sarwar set up M/S Murad Enterprise.

The case of the latter company is equally troubling.

Murad Enterprise, which listed trading of sugar, soybean and palm oil as its operations, is reportedly working on behalf of S Alam Group.

Between December 6 and December 15, 2022, Murad Enterprise received Tk 1,054.38 crore in loans from the Chaktai branch, secured by a mix of personal guarantees, post-dated cheques and 12 Mudaraba Term Deposit Receipts totalling Tk 270 crore from other banks.

Before being apprehended yesterday while attempting to flee the country, Alam was contacted by The Daily Star.

Upon hearing the questions, he disconnected the phone call. He did not respond to further messages.

Security officials at Chattogram Shah Amanat International Airport detained Alam from a Dubai-bound flight yesterday morning, according to Patenga police station's Officer-in-Charge Mahfuzur Rahman.

Islami Bank officials refused to share any additional information.

However, they said they had started compiling a list of dubious loan recipients to forward to the Bangladesh Bank following the mass uprising that overthrew the Sheikh Hasina-led Awami League government on August 5.

"I have nothing to say about borrowers," said Manjur Hasan, manager of Islami Bank's Chaktai branch. "The top officials or board members may have more information. You should reach out to them."

Attempts to contact Murad Enterprise owner Sarwar for comment were unsuccessful.

The Daily Star also couldn't reach the managing director of Islami Bank for comment despite multiple attempts.