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Published : 13 Apr 2025, 10:58 PM
A case has been initiated against Padma Bank's former chairman Chowdhury Nafeez Sarafat and three others over the alleged misuse and attempted embezzlement of a Tk 50 million “time loan” from the bank.
The lawsuit was lodged at the integrated district Dhaka-1 office of the Anti-Corruption Commission (ACC) on Sunday, the agency’s Director General (Prevention) Akhtar Hossain confirmed.
ACC Deputy Assistant Director Muhammad Rakib Uddin Minhaj is the plaintiff in the case.
The three other accused are ASM Mainuddin Monem, managing director (MD) of Abdul Monem Limited; Farhana Monem, director of the company; and Sabbir Mohammad Sayem, former manager of Padma Bank’s Gulshan corporate branch and then senior executive vice president.
According to the First Information Report (FIR), Padma Bank’s Gulshan branch approved a Tk 50 million six-month “time loan” in 2022 in favour of Abdul Monem Limited.
The accused, however, allegedly colluded to breach the loan terms.
Instead of using the funds as working capital, they reportedly used it to settle other loan liabilities.
The complaint alleges that this constituted fraud, abuse of power, and an attempt to misappropriate the funds.
The accused face charges under sections 409, 109, 420, and 511 of the Penal Code, as well as section 5(2) of the Prevention of Corruption Act, 1947.
Citing the investigation, the ACC officials said Abdul Monem Limited opened a short notice deposit (SND) account at the Gulshan corporate branch on Mar 29, 2022, even though the company’s MD had initially applied for a composite loan of Tk 250 million on Dec 6, 2021.
The Tk 250 million loan, comprising a Tk 200 million Letter of Credit (LC) facility and the Tk 50 million time loan, received approval at the bank's 84th board of directors meeting on Feb 9, 2022, with disbursement commencing on Feb 13 of the same year.
Later, on Dec 6, 2023, the company applied once again for a Tk 50 million six-month time loan, which was approved in the 55th board meeting on Dec 27, 2023.
The loan was disbursed the following day.
As per conditions, the loan was meant for purchasing powdered milk, raw materials, packaging items, and machinery to keep its ice cream unit operational.
The funds, however, were allegedly diverted and used to settle unrelated loans.
The ACC officials said the loan was supposed to be repaid by June 2024, but the borrower failed to meet the deadline, and the bank took no legal action.
Following the launch of the ACC’s inquiry, three suspicious cash transactions were made on Feb 19, 2025, to settle and adjust the outstanding amount.
The case statement says the money could have been embezzled if the national anti-graft agency had not opened its investigation.
The complaint further alleges that Nafeez, who was serving as chairman of Padma Bank’s board of directors at the time of the loan approval, had a direct link to both the lender and the loan beneficiary.
It claims he used this position to abuse his authority with the intent to misappropriate the loan funds.
Despite repeated allegations of financial irregularities linked to Nafeez during the last three terms of the now-ousted Awami League government, he had remained beyond scrutiny.
After the fall of the Awami League administration in August last year, the ACC launched probes into several beneficiaries of the previous regime, including Nafeez.
Investigations against him are also underway by the Bangladesh Financial Intelligence Unit (BFIU), the Criminal Investigation Department (CID), and the Bangladesh Securities and Exchange Commission (BSEC).
