456 officials of Union Bank, First Security losing jobs for S Alam links

Shariah-based Union Bank yesterday sacked 262 of its staff, with some of its officials alleging that their appointments were based on directives of Mohammed Saiful Alam alias S Alam bypassing due procedures.

Meanwhile, First Security Islami Bank also "withdrew" 194 officials, including a zonal head and managers of 24 branches in Chattogram, over their alleged involvement in illegally providing loans to Alam.

Alam is the founder of Chattogram-based conglomerate S Alam Group, which owns a significant number of shares of both Union Bank and First Security Islami Bank.

Both entities had been under the control of the group for long.

The group had allegedly availed a huge amount of loans from the two banks bypassing banking regulations, for which the two are now suffering from a liquidity crisis.

After the Awami League government fell in the student uprising last August, Bangladesh Bank reformed the boards of directors of the two, essentially freeing them from the group's control.

FIRST SECURITY ISLAMI BANK

The "withdrawals" were confirmed by Mohammad Abdul Mannan, chairman of First Security Islami Bank. However, he did not give any further details.

A top official of First Security Islami Bank said the new board of the bank ran investigations, unearthed irregularities in loan disbursements at 24 branches and found evidence linking the 194 to those.

He said the loans were provided to Alam through entities created both under his name and using false identities.

The official said the withdrawal was a preliminary step towards the sacking of those officials.

There are other officials involved in the irregularities and the bank's management team will take punitive measures against them in phases, said the official.

UNION BANK

After the Awami League government fell, Bangladesh Bank dissolved the board of directors of Union Bank on August 27.

On November 17, a new board of directors of the bank decided to sack 262 officers and officially cited that it was "to reduce costs".

According to the board, the sacked officials were hired last February based on a list provided by Alam and no recruitment test was held.

All the sacked officials are trainee assistant officers and trainee assistant cash officers and most hail from different upazilas of Chattogram.

Farid Uddin, chairman of the bank, did not receive a call from The Daily Star yesterday for comment.

Alam is apparently absconding and could not be reached for comments.