Saiful Alam claims Singapore citizenship shields against Bangladesh Bank ‘intimidation’

Mohammed Saiful Alam, chairman of S Alam Group, has claimed his Singapore citizenship and an international investment treaty protect him against Bangladesh Bank’s allegations of financial misconduct.

Alam, his wife Farzana Parveen, and sons Ashraful Alam and Asadul Alam Mahir have warned of potential international arbitration if the allegations persist, according to a letter issued by their lawyers, Quinn Emanuel Urquhart & Sullivan.

The Financial Times (FT), which reviewed a copy of the letter, reported that Bangladesh Bank Governor Ahsan H Mansur accused Alam of syphoning Tk1.2 trillion (approximately US$10 billion) from the banking sector using inflated invoices and shareholder loans.

Mansur alleged Alam gained control of major banks with assistance from military intelligence and described the scheme as “the biggest, highest robbing of banks by any international standards.”

Legal threats and citizenship claims

In their letter to Mansur, Alam and his family emphasised their Singapore citizenship and protections granted under a 2004 bilateral investment treaty between Bangladesh and Singapore.

They argued that Mansur’s statements as Bangladesh Bank governor were attributable to the state of Bangladesh and violated the treaty.

The letter warned that the family might pursue arbitration under the International Centre for Settlement of Investment Disputes and take legal action against Mansur personally for the damage caused to S Alam Group.

According to FT, a spokesperson for Quinn Emanuel declined to comment on when Saiful Alam’s family acquired Singaporean citizenship or whether they still hold Bangladeshi nationality. The Singaporean government also did not respond to a request for comment.

Allegations of unauthorised offshore investments

A report titled “S Alam’s Aladdin’s Lamp,” published by The Daily Star on 4 August 2023, alleged that Alam established a US$1 billion business empire in Singapore without obtaining mandatory permissions from Bangladesh Bank.

The acquisitions reportedly include hotels, residential properties, and retail spaces.

Under Bangladesh law, transferring funds abroad without central bank approval can result in up to 12 years in prison and fines of twice the amount transferred.

The report highlighted that although the central bank permitted 17 companies to invest overseas, S Alam Group was not among them.

Documents indicate Alam sought to remove his name from property records to obscure his involvement.

Counterclaims and central bank’s stance

S Alam Group has consistently denied the allegations, asserting through Quinn Emanuel that the claims are baseless and defamatory.

The group accused Mansur of orchestrating a campaign of intimidation and stated that they prefer resolving disputes amicably but will pursue litigation if necessary.

Mansur, however, defended his comments, stating they were supported by evidence and ongoing investigations into corruption spanning years.

He emphasised that full documentation of the alleged misconduct was still being compiled.

Travel bans and ongoing investigations

In October, a Dhaka court imposed a travel ban on Alam, his wife, and 11 family members. The Anti-Corruption Commission (ACC) is investigating claims that Alam laundered US$1 billion to Singapore and other countries.

The ACC referenced The Daily Star’s investigation, which claimed Alam had acquired properties in Singapore over a decade while bypassing Bangladesh Bank regulations.

The report alleged that Alam’s transactions were designed to conceal his involvement, including efforts to erase his name from ownership documents.

In September, the Suspicious Transaction Reporting Office (STRO), Singapore’s financial intelligence unit, reportedly requested detailed information on the assets of the controversial S Alam Group, both in Bangladesh and overseas.

The FT noted that the letter’s threat of international arbitration arises amid other challenges facing the interim government led by Nobel laureate Muhammad Yunus.

The government, which took power after student-led protests ousted Sheikh Hasina, is attempting to recover funds allegedly siphoned from the banking sector.

The administration also faces broader issues, including political unrest, disruptions in the crucial garment export industry, and strained relations with neighbouring India.

According to the FT, many in New Delhi view the interim government as part of a “US-backed regime change,” further complicating the regional political environment.