Bashundhara chief Akbar Sobhan faces National Bank ‘loan embezzlement’ charges

Akbar Sobhan and his son Shafiat will both be accused of “embezzling” Tk 5.75 billion in loans from National Bank

The Anti-Corruption Commission (ACC) is going to file a case against Bashundhara Group Chairman Ahmed Akbar Sobhan and 25 others on charges of embezzling Tk 5.75 billion in loans taken from National Bank.

ACC Director General Md Akhtar Hossain disclosed the development on Wednesday.

Among those accused are Sobhan’s son Shafiat Sobhan Sanvir, managing director of Bashundhara Multi Food Products Limited, and Moynal Hossain Chowdhury, the director of the company.

Also named are the then branch manager of National Bank’s Dilkusha branch, members of the bank’s credit committee, an officer of the credit risk management department at the head office, and the bank’s former managing director and several directors.

According to the ACC, the defendants, in collusion with each other, violated the bank's prevailing rules by approving loans without sufficient collateral, fixed and floating charges, and fortnightly stock reports.

The commission said the borrower’s repayment capacity was not properly verified before sanctioning large loans.

The complaint also alleges that liabilities of the borrowing entity in other banks and financial institutions were not reviewed and that factory and business inspection reports were not obtained prior to approval.

In alleged violation of National Bank’s Policy and Procedural Guidelines on Credit Risk Management, loans amounting to Tk 13.25 billion were approved in the name of Bashundhara Multi Food Products Limited, including Tk 5.75 billion in funded loans and Tk 7.5 billion in non-funded facilities.

The case centres on the alleged embezzlement of the Tk 5.75 billion funded portion, which remains unpaid.

According to the ACC, loan conditions required the funds to be used for customs, port, transportation and C&F charges, as well as office, warehouse, marketing, sales, advertising and administrative expenses related to letters of credit.

Investigators allege those conditions were not followed.

The complaint states that Tk 5.03 billion was transferred through online clearing and other channels to accounts of different entities under the Bashundhara Group.

The funds were later used to settle bills, withdraw cash and pay salaries and allowances of officers and employees of East West Property Development Private Limited.

The ACC said the transactions constitute an attempt to conceal the illegal origin and ownership of the allegedly embezzled funds through layered transfers and conversion.