Investigation Teams Formed to Recover $17 Billion in Bangladesh

LONDON: Bangladesh’s central bank has hired three “Big Four” accounting firms — EY, Deloitte and KPMG. They will audit banks. According to the central bank, these banks lost $17 billion. The loss was to business people close to the regime of former leader Sheikh Hasina. The Financial Times reported this information on Sunday, citing bank governor Ahsan Mansur.

In an interview with the newspaper, Mansur said the Bangladesh Financial Intelligence Unit had also formed 11 joint investigation teams. These teams aim to track down and reclaim assets believed to be bought with funds siphoned out of the banks. They also help prosecute those responsible.

EY and Deloitte did not respond to requests for comment outside regular business hours. Efforts to contact KPMG for a comment through their website were not successful.

Mansur was appointed central bank governor by interim national leader Muhammad Yunus. This appointment happened after Sheikh Hasina fled to India in August. He said to the FT that the investigations would look at 10 leading Bangladeshi businesses. The investigations would also examine the ousted former leader and her relatives.

The govt has also formed 11 joint investigation teams to track down funds allegedly siphoned out of banks by ‘people close to Hasina’

Mansur, a former economist at the International Monetary Fund, has been tasked with helping to stabilise Bangladesh’s economy. He is also beginning the process of recovering what he estimates is at least two trillion taka ($16.46 billion) taken from the banks during the 15 years when Hasina and her Awami League party were in power, the FT said.

Banks taken over

Mansur told the Financial Times that several leading banks had been taken over. The country’s military intelligence agency helped with the takeover. In some cases, this happened “at gunpoint”.

He said the asset quality review was looking at six banks, in which five had shares held by S. Alam, a conglomerate headed by Singapore-based Bangladeshi tycoon Mohammed Saiful Alam.

“As part of that investigation, the old MDs of these banks must take leaves of absence. This ensures that quality is unhindered. It also prevents interference with the asset review,” Mansur said.

Bangladesh’s Anti-Corruption Commission this month filed a case against several people. This includes two of Alam’s sons. They are charged with embezzling Tk11.3bn in the form of loans. A Dhaka court ordered the seizure of several properties in connection with the case.

Quinn Emanuel Urquhart & Sullivan, Alam’s lawyers, told the FT that he had committed no wrongdoing. They also stated that investors in the conglomerate had done nothing wrong. They are prepared to commence legal proceedings to protect their investments in Bangladesh, if necessary.

Quinn Emanuel said Alam and the group’s investors “welcome transparency and the application of international standards.” However, Mansur’s position was conflicted. He was the principal driver of the Yunus government’s task force on banking sector reforms.

Alam’s lawyers wrote to Yunus last month. They warned they were prepared to launch international arbitration if they could not solve their dispute with Dhaka. They said accusations of money laundering and any other allegations against the businessman and his family were “baseless”.

International help

The Yunus government has enlisted international help. They are making efforts to trace and reclaim money they claim was taken out of the country. This includes assistance from the UK’s International Anti-Corruption Coordination Centre and the US Treasury.

The Treasury is offering Yunus’s advisers technical assistance. Bangladesh is preparing to make formal requests for legal assistance from other countries.