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The Chittagong Port Authority is facing a financial crisis due to Tk 1,106 crore in fixed deposits held across five banks, including four controlled by S Alam Group, which have not returned the funds despite repeated requests. This has disrupted the port’s ability to fund reinvestment and development projects. In response, the authority has suspended transactions with several banks, including Global Islami Bank and Padma Bank, citing their failure to provide returns or refunds. The issue stems from a regulatory change four years ago that allowed private banks to handle 50% of government funds, leading weaker banks to attract port funds through various influences. The port authority has urgently sought Bangladesh Bank’s intervention to recover the funds.
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