Notorious S Alam Group: The most powerful oligarch

Rise of Bangladeshi Oligarchs: Part 3

Notorious S Alam Group: The most powerful oligarch

S Alam, the founder and chairman of the S Alam Group, is one of the most powerful and controversial figures in Bangladeshi business today. He has been accused of looting banks and parking money in foreign countries like Cyprus, Singapore, and the British Virgin Islands. He is believed to be the cashier of Bangladesh's hybrid regime. S Alam’s influence is so extensive that he can obtain favorable court orders despite widespread allegations of irregularities. For instance, earlier this year, the High Court revoked its own order that had directed the Anti-Corruption Commission and the Criminal Investigation Department to investigate allegations of bank looting and money laundering against S Alam Group and its directors.

Founded in 1985, S Alam Group has grown into one of Bangladesh's largest conglomerates, spanning industries such as commodities, power, oil refining, health, textiles, IT, financial institutions, shipping, and more, with investments worth billions. It has become the government's preferred partner in multiple sectors, further entrenching its influence.

Rise to power

Despite numerous controversies, S Alam’s business empire has continued to expand rapidly, particularly in the infrastructure and energy sectors, under the patronage of the ruling Awami League. His rise is closely tied to his political connections, benefiting from policies and subsidies provided by the ruling party. Recently, the government partnered with the Group to expand oil refinery operations.

Controversies

S Alam's close ties to the Awami League have led to allegations of crony capitalism and corruption. Critics argue that he has used his political influence to secure government contracts and other benefits. His rise has significant implications for Bangladeshi business and politics, raising concerns about the influence of big business on politics and the potential for corruption.

It has been accused of engaging in financial market manipulation and accounting fraud for decades. His empire is heavily indebted, with opaque sources of funding, leading many to believe that his companies are set up to defraud financial markets.

One of the most controversial moves by S Alam was the acquisition of multiple banks and financial institutions, including Islami Bank Bangladesh Limited, Al-Arafah Islami Bank, First Security Islami Bank, National Bank, Bangladesh Commerce Bank, Union Bank, Global Islami Bank, and Social Islami Bank. He also controls several other financial institutions and insurance firms.

Experts argue that these acquisitions could have devastating impacts on the financial sector, warning that ineffective oligarchs can be dangerous while inept ones are calamitous.

Debt and financial irregularities

According to Credit Information Bureau (CIB) documents obtained by The Mirror Asia, S Alam Group’s total loan stands at Tk 31,899 crore, including overdue loans worth more than Tk 3,310 crore. In 2022 alone, the conglomerate brazenly looted about Tk 30,000 crore from Islami Bank. The group has not repaid a substantial amount of the loans and continues to borrow thousands of crores from banks, flouting regulations. It seems that he is above the law.

According to Bangladesh Bank’s statistics, none of the directors are eligible for their positions, yet family members hold director positions in various subsidiaries.

Despite repeated attempts, nobody from S Alam Group responded to phone calls and texts. Bangladesh Bank spokesperson Mezbaul Haque declined to comment.

S Alam Group’s directors with significant loans include:

*Mohammed Abdullah Hasan, director, with over Tk 313 crore in bank loans.

*Abdus Samad, director, with over Tk 307 crore in loans and loan guarantees worth Tk 515 crore.

*Ahsanul Alam, director, with personal loans of almost Tk 78 lakh.

*Group Chairman Saiful Alam with loans worth over Tk 1,072 crore.

*Shahidul Alam, director, with loans amounting to almost Tk 3,262 crore.

Major enterprises under the S Alam Group with stupendous loans include:

*S Alam Vegetable Oil Ltd: Tk 7,793 crore, including overdue loans of Tk *679 crore and non-funded loans of Tk 1,318 crore.

*S Alam Refined Sugar Industries Ltd: Tk 6,590 crore.

*S Alam Cold Rolled Steels Ltd: Tk 4,754 crore.

*S Alam Trading Company (Pvt) Ltd: Tk 2,557 crore.

*S Alam Steels Ltd: Tk 328 crore.