The S Alam Group, led by its founder and chairman, has warned Bangladesh Bank’s governor of potential international arbitration following allegations of siphoning off Tk 1.2 trillion ($10 billion) from Bangladeshi banks during the previous regime. The group’s lawyers, in a letter dated November 19, accused the governor of making “false and defamatory” statements that amount to an intimidation campaign against the conglomerate, which employs 200,000 people in Bangladesh. The group, backed by Singaporean citizenship and a 2004 bilateral investment treaty, claims these remarks violate investor protections under Bangladeshi and international laws.

The central bank governor alleged that the group inflated import invoices and misused loans in one of the largest financial scandals globally. While the S Alam Group denied these accusations, its legal team warned of arbitration at the International Centre for Settlement of Investment Disputes. The governor defended his claims, stating they were substantiated and being documented further.

Union Bank terminated 262 trainee officers on November 17, with its board citing cost reduction as the reason. Allegations suggest these appointments, made in February, were directed by the founder of a S Alam Group without recruitment tests. Following the restructuring of its board by Bangladesh Bank on August 27, the institution aims to address mismanagement tied to prior leadership. Most of the dismissed officers were from Chattogram, the founder’s base, highlighting potential favoritism in hiring practices.

Similarly, First Security Islami Bank “withdrew” 194 officials, including branch managers, for alleged involvement in illicit loans connected to the same conglomerate founder. The bank’s new board, installed after the August government change, discovered irregularities in 24 branches, including loans issued under false identities. These measures reflect an effort to restore regulatory compliance and financial stability in the wake of a liquidity crisis attributed to mismanagement and policy violations under previous ownership.

Al-Arafah Islami Bank PLC has promoted SM Abu Jafar to the position of deputy managing director, as announced in a press release on November 20. Jafar, who had been serving as senior executive vice-president since 2021, brings 24 years of extensive experience in the banking sector to his new role. He began his career as a management trainee officer at Exim Bank PLC in 2000, later holding key roles such as foreign trade desk officer, operations manager, and branch manager of three corporate and authorized dealer branches. He also worked at United Commercial Bank PLC, gaining expertise in diverse areas of banking operations.

Jafar’s promotion highlights his commitment to the bank’s growth and development. He holds both bachelor’s and master’s degrees in accounting from the University of Dhaka, a strong academic foundation complementing his professional journey. The bank anticipates that his leadership will further strengthen its strategic goals.