Leading Bangladeshi business conglomerate S Alam Group Chairman Mohammad Saiful Alam has asserted that his and his family's Singaporean citizenship and an international investment agreement offer their enterprise protection against what he deemed as intimidation and undue pressure from the Bangladesh Bank.
This claim was highlighted in a formal letter sent by their legal representatives to the Bangladesh Bank Governor Dr Ahsan H Mansur, warning of legal recourse through an international arbitration court should their business interests suffer unjust harm, reported British media outlet Financial Times on Tuesday (19 November).
Previously, in an interview with Financial Times, BB Governor Ahsan H Mansur accused Saiful Alam and his associates of siphoning at least Tk1.2 trillion —equivalent to $10 billion from the Bangladesh Bank during the tenure of ousted prime minister Sheikh Hasina.
In response, US-based law firm Quinn Emanuel Urquhart & Sullivan, representing S Alam, issued a letter refuting the BB governor’s "provocative and baseless remarks" that could tarnish the reputation of their client.
The letter further stated that S Alam Group provides direct and indirect employment to approximately 200,000 people within Bangladesh.
The Financial Times report underscores that the letter, and the implicit threat of initiating international arbitration proceedings, represent one of the most serious responses faced by the interim government of Bangladesh.
Bangladesh's interim government, led by Nobel laureate Dr Muhammad Yunus, assumed power following a student-led uprising that led to Sheikh Hasina’s downfall.
Governor Ahsan H Mansur, a former IMF official, was appointed to his position at Bangladesh Bank last August.
In his interview, he alleged that Saiful Alam and his collaborators exploited influential military intelligence figures to gain control over the country's banking sector and engaged in financial crimes such as loans for new shareholders and overpriced import invoices for personal gain.
S Alam Group operates across various sectors, including food, construction, apparel, and banking.
The group is predominantly controlled by Saiful Alam, his wife Farzana Parveen, and their sons Ashraful Alam and Asadul Alam Mahir.
In a statement issued through Quinn Emanuel last month, the industrial conglomerate rejected the BB governor’s accusations as devoid of any factual basis.
In the latest communication, Dr Ahsan H Mansur was accused of leading a "deliberate campaign" to ruin S Alam Group, thus affecting its investors.
The letter specifically highlights that the four key stakeholders hold Singaporean citizenship.
While it does not disclose when Saiful Alam’s family acquired Singaporean nationality or if they retain Bangladeshi citizenship, it notes the 2004 bilateral investment protection agreement between Bangladesh and Singapore.
The letter further asserts that, as Singaporean citizens, the investors enjoy "rights and protections" under the 1980 Bangladesh Foreign Private Investment Act, and they will take all necessary measures to safeguard these rights, including seeking a resolution through international arbitration, if warranted.
Responding to the letter, Governor Ahsan H Mansur reiterated to Financial Times that his claims are "entirely substantiated," and described the extensive corruption involving numerous banks over the years, with documentation of the alleged misconduct still underway.
Dr Yunus’s interim government is grappling with numerous challenges, including political unrest, cancelled orders within the garment sector, and a critical stance from India. The threat of international arbitration adds a new dimension to these challenges.
The letter concludes by stating that Saiful Alam and his family prefer a peaceful resolution in compliance with the law to avoid lengthy and costly legal proceedings but warned the central bank’s governor of legal action should he continue to infringe on their rights with unfounded statements.
