S Alam files arbitration against interim government at World Bank tribunal

Businessman Saiful Alam, alias S Alam, has filed an arbitration case against Bangladesh’s interim government at the World Bank, reports Financial Times.

He claims the authorities' measures to recover laundered money have caused “hundreds of millions of dollars” in losses to his family businesses.

According to the Financial Times report, lawyers representing the Alam family lodged the arbitration request on Monday with the International Centre for Settlement of Investment Disputes.

They alleged that the government led by Muhammad Yunus has carried out a “targeted campaign” to seize assets, freeze bank accounts and destroy the market value of their companies.

The case is seen as a significant setback to the interim government’s drive to recover money allegedly smuggled out of the country.

A white paper report by the government said $240 billion was siphoned off during the three consecutive terms of the Awami League.

Of that, Bangladesh Bank Governor Ahsan H Mansur has claimed the Alam family alone laundered nearly $12 billion.

Alam has rejected the central bank governor’s allegation, saying there is “no truth” to it.

The family's lawyers had warned the Yunus-led administration in December that they would pursue international arbitration if the dispute was not resolved within six months.

The legal team from Quinn Emanuel Urquhart & Sullivan alleged the government has blocked many of the family’s assets and bank accounts, while conducting “spurious” investigations and running targeted media campaigns.

The claim says these actions have caused “hundreds of millions of dollars” in damage to the S Alam group.

Asked about the allegations, Mansur told the Financial Times: “We will give our response through the proper channel, whenever it reaches us.”

The report said the Chief Advisor’s Office did not respond to a request for comment.

The arbitration has been filed under a 2004 bilateral investment treaty between Bangladesh and Singapore.

Members of the S Alam family renounced Bangladeshi citizenship in 2020, and later acquiring Singaporean nationality between 2021 and 2023.

As Singaporean citizens, they claim to be entitled to protection under Bangladesh’s 1980 Foreign Private Investment (Promotion and Protection) Act.

Mansur has alleged that Alam and associates gained control of banks with support from the military intelligence agency, and siphoned money abroad through loans and fraudulent bills.

“We have discovered huge amounts of evidence to indicate how much resources they have diverted,” said Mansur.

The arbitration claims, however, states the government has failed to produce any specific proof of money laundering.