The former chairman of South Bangla Agriculture and Commerce (SBAC) Bank, Amzad Hossain, has been accused of ignoring letter of credit (L/Cs) regulations amongst several irregularities at the bank according to local media.

Hossain, who announced his intention to resign three weeks ago citing illness, is subject of a corruption probe by the Bangladesh Financial Intelligence Unit (BFIU) and has been replaced by Abdul Kadir Molla.

Allegations

Hossain allegedly opened an L/C with SBAC Bank worth the equivalent of US$41 million for one of his companies, Rupsha Fish and Allied Industries.

According to investigators, the former chairman failed to provide sufficient collateral against the L/C as called for by the bank's board of directors while the 5 per cent margin put up by Amzad was returned to him just days after the L/C opening.

Ghost company

Investigators have also alleged that Hossain secured a loan of the equivalent of around US$4.7 million from SBAC Bank through forgery and by misusing his power.

The former SBAC chairman also arranged a loan worth round US$2.35 million for a firm called Khulna Builders, the location and existence of which the BFIU has been unable to find.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.