ACC prosecutes former home minister MK Alamgir for ‘embezzling’ Padma Bank funds

The Anti-Corruption Commission, or ACC, has prosecuted former home minister Mohiuddin Khan Alamgir for allegedly embezzling Tk 88.6 million from Padma Bank, formerly known as Farmers Bank, through a shell organisation called Sultana Matsya Khamar.

Mohiuddin is also the former chairman of the bank, bdnews24.com reports. 

On Wednesday, ACC Deputy Director Syed Ataul Kabir brought the charges in a case filed at the ACC’s district office in Jamalpur.

In addition to Mohiuddin, Rashedul Haque Chishti, the owner of RCL Plastic Industries, Mohammad Faruk, Hiron Rahman, Ibrahim Khan, Bakshiganj Farmer’s Bank chief Masudur Rahman Khan, and Md Fakhruzzaman, former assistant officer of the bank’s same branch have also been accused.

According to the case dossier, the accused were involved in suspicious transactions by concealing the illegal nature, source, location, ownership, and control of the proceeds derived from criminal activities.

It alleges that Tk 88.6 million was embezzled through money laundering, excluding interest, from Farmers Bank.

Akhter Hossain, ACC's director general (prevention), told bdnews24.com: "A bank account was opened in the name of a shell entity called 'Sultana Fish Farm’. There were unusual and suspicious transactions, leading to the withdrawal and embezzlement of Tk 88.6 million. Our investigating officer has confirmed that this money came from illegal sources."

“To conceal the illegal source, the money was transferred through various processes. The incidents took place between Apr 4, 2016, and Apr 9, 2017,” he added.

Although the ACC previously filed cases involving other Farmers Bank scandals, Mohiuddin was not listed as an accused.

"There are several incidents involving Farmers Bank, and we have been filing cases in phases. The commission approved this case based on the report of the investigating officer."

He added: "The detailed description of how each accused was involved is provided in the case statement. The case was filed with the commission's approval. An investigating officer will be appointed, and the necessary legal steps, including arrests, will be determined during the investigation.”

Mohiuddin, a former bureaucrat and a member of the Awami League's advisory council, served as home minister during the Awami League government from 2012 to 2013.

He became the founding chairman of Farmers Bank when it was approved in 2013 due to political considerations. The bank collapsed within four years due to unprecedented loan fraud and corruption.

In 2017, after the bank failed to return depositors’ money, the Bangladesh Bank intervened, leading to Mohiuddin's resignation from the post of chairman.

After the change of power, Bangladesh Financial Intelligence Unit, or BFIU, froze the bank accounts of Mohiuddin, his wife Sitara Alamgir, and son Joy Alamgir.