ACC to prosecute Sikder family, S Alam over Tk 1.1bn ‘embezzlement’ in First Security Bank scam

The anti-graft watchdog is preparing to bring charges against 26 individuals in the high-profile embezzlement case

The Anti-Corruption Commission (ACC) is going to prosecute five members of the influential Sikder family, Mohammad Saiful Alam, better known as S Alam, his wife, and several others over allegations of embezzling Tk 1.1 billion from First Security Islami Bank through fraudulent practices.

ACC Director General Akhtar Hossain told journalists on Tuesday that a total of 26 individuals will be named as defendants.

“The bank approved a loan for a new client, SQ Trading and Development, despite no genuine requirement and without a project inspection report, violating rules and abusing lending powers,” he said.

Investigations revealed that First Security Islami Bank disbursed loans against work orders without verifying the borrower’s capacity or checking required records. Funds were then allegedly withdrawn, transferred, and misappropriated.

According to the graftbusters, the case will target Ron Haque Sikder and Rick Haque Sikder, along with other siblings; S Alam, the former chairman of First Security Bank and head of the S Alam Group; and 26 others. The principal amount involved is Tk 1.1 billion, which has grown to over Tk 2.07 billion including interest

Probable defendants include Sikder patriarch Zainul Haque Sikder’s three sons -- Ron, Rick, and Momtazul -- and two daughters, Lisa Fatema Haque Sikder and Parveen Haque Sikder, along with S Alam and his wife.

Also named are owners of SQ Trading and Development, MS Construction and Developers, Mam Impex, and several former senior bank officials, including directors and executives.

ACC reports show that on Jan 6, 2019, SQ Trading opened an account at the Karwan Bazar branch, facilitated by the Sikder family. The following day, a loan application for Tk 1.1 billion was submitted against a work order from Power Pack Holdings Limited. Despite being a new client, the loan was quickly approved without due diligence.

By Jan 27, 2019, the 205th board meeting sanctioned the loan without collateral, project reports, or legal and audit opinions. Funds were deposited on Feb 5, 2019, and subsequently transferred to three companies -- MS Construction (Tk 472.7 million), Mahbub Enterprise (Tk 310 million), and Mam Impex (Tk 320 million) -- before being withdrawn and redirected to accounts linked to the Sikder family.

ACC said the fraudulent and abusive practices caused First Security Islami Bank substantial losses, with total outstanding dues reaching 2.07 billion Tk, including interest, as of Jun 30.