Ex-CEO of finance firm files case, says Rouf Talukder, Salman Rahman forced him out after loan denial

Formanul Islam, former executive director and CEO of the state-owned Bangladesh Infrastructure Finance Fund Limited (BIFFL), has filed a criminal case against several high-profile figures, including former finance secretary Abdur Rouf Talukder and former prime minister Sheikh Hasina's adviser Salman F Rahman. Former NBR chairman and a BIFFL board member Abu Hena Rahmatul Muneem and nine others have been named in the case.

In the case documents, Forman claims he was harassed and threatened after refusing to approve loans for Salman. He alleges that in 2019, Rouf pressured him and, after his refusal, he was removed from his post. Despite filing a police report, no investigation followed.

But what led Forman to file the case that has now reached court, with the Police Bureau of Investigation ordered to probe the allegations?

On a seemingly ordinary office day on 8 July 2019, Formanul Islam, executive director and CEO of BIFFL, settled into his routine at the state-owned non-bank financial institution. Established in 2011, BIFFL was tasked with providing long-term financing for infrastructure projects across Bangladesh, and Forman was no stranger to the pressures that came with his role.

However, the day quickly took an unexpected turn. A call from the personal secretary of Abdur Rouf Talukder, the then finance secretary, also chairman of the board of directors of BIFFL, requested an immediate meeting. Forman rushed to the ministry and waited outside the secretary's office, Forman told The Business Standard.

Salman F Rahman, often sarcastically referred to as Darbesh for his saintly attire and demeanour, soon made his entrance, unmistakable in his pristine white pyjama and panjabi.

Minutes later, Forman was summoned into the room. The atmosphere was tense, the stakes high. As he entered, he found himself seated among three powerful figures – Salman, another powerful businessman of Sheikh Hasina's regime, and Rouf Talukder – each occupying a side of the sofa, leaving the remaining seat for him.

Rouf Talukder began to introduce Forman, but was quickly interrupted by Salman. "I know him," Darbesh said with an air of familiarity. Then, with the directness that characterised him, he said, "You are managing BIFFL very well. Now, our 200MW Teesta Solar Project requires $185 million in financing. You must provide it." He paused, allowing the weight of his words to sink in, before adding, "This project offers a PPA rate of 17 cents per unit – the highest in Bangladesh and commercially very viable."

At that moment, the usual office day had transformed into a high-stakes negotiation, with Forman at the centre, facing a decision that would have lasting implications for BIFFL.

It is important to understand the backdrop to this unfolding drama.

Before that fateful meeting, the managing director and other officials from the Teesta Solar Project had been in regular contact with BIFFL, seeking to secure financing. The project had caught the attention of major international lenders, and Forman and his team had even explored potential funding with the World Bank, arranging a meeting between Teesta's representatives and the Bank's team at their Dhaka office.

But just a day before the meeting, a critical question arose. One official from the World Bank reached out to Forman with a straightforward inquiry: "Was the project's procurement process competitive?" When Forman admitted it was not, the conversation took a decisive turn. The WB official explained that, due to policy constraints, they could not provide financing for the project if the procurement had not followed a competitive process.

This news was a significant setback, and Forman promptly informed the Teesta officials. It was clear to him that this was not the end of the road, however. He suspected that Salman F Rahman would find a way to keep the project moving forward, and his suspicions were soon confirmed.

"After coming to know that the WB could not finance the project, I believe, Salman F Rahman arranged the meeting at the finance secretary's office to create pressure on me and BIFFL," Forman told TBS.

During the discussion, Forman provided an update on the WB's position, explaining that the lack of a competitive procurement process had disqualified the project from receiving their funds. He pressed Salman on whether the Engineering, Procurement, and Construction (EPC) process had been competitively solicited. Salman candidly admitted it had not, confirming that Trina Solar's appointment as the EPC contractor was a non-competitive process. This revelation not only ruled out the WB but also the Asian Development Bank as potential financiers.

Despite these hurdles, Darbesh was unwavering in his insistence that BIFFL step in to provide the necessary funding. Forman, however, had to make it clear: BIFFL simply did not have the financial capacity to cover the project's massive requirements. The institution's limit for a single borrower was significantly lower than the $185 million (equivalent to over Tk1,500 crore at that time) needed for the Teesta Solar Project.

In this high-pressure environment, Forman found himself caught between the rigid policies of international financial institutions and the determined push from one of Bangladesh's most influential figures.

Salman then asked about possible solutions. To navigate the situation diplomatically, Forman proposed, "Government banks might be open to this. You could issue bonds worth Tk1,400 crore and have them subscribe." His face lit up, and he responded, "That's a good idea. I'll arrange it, but you need to provide Tk200 crore upfront."

Rouf Talukder had remained silent so far, passively observing the discussion. Forman respectfully informed Salman that, due to their existing loan commitments, BIFFL couldn't provide Tk200 crore upfront, but could consider up to Tk100 crore – conditional on bond approval and full financing.

At that moment, Rouf's demeanour shifted dramatically; he became visibly agitated and firmly instructed, "You propose Tk200 crore at the board meeting; I'll handle the rest."

Immediately afterward, Salman brought up another issue: "By the way, you haven't released the Jica fund (Tk40 crore) for my ready-made garments!" Forman swallowed hard and responded, "We're ready to proceed, but all your sister concerns have poor CIB [Credit Information Bureau] reports, which are classified and prevent us from processing the loan." Darbesh quickly countered, "I've obtained a stay order from the High Court, so you should now be able to access the CIB report."

Forman  pointed out that the stay order itself was cited as the reason the CIB report couldn't be shown, which presented its own complication. Rouf gave Forman a glance of visible irritation. To steer the conversation in a different direction, Forman informed Darbesh that the No Objection Certificate from the Sustainable and Renewable Energy Development Authority for his project had expired, and BIFFL couldn't consider the loan until it was renewed. Salman assured Forman that he would expedite the renewal process.

With no other matters to address, Forman left.

Twenty days later, on 28 July, Forman was forced to resign during a board meeting. Rouf Talukder handed him a blank sheet of paper and asked him to submit resignation, even though not all board members were present.

Forman gave the required three-month notice as per employment terms, but the then finance secretary and chairman of BIFFL insisted that he resign immediately, leave the office at once, and not return the following day.

Forman walked out of the office where he had served as CEO for over four years.

He says it was a deeply upsetting moment, made worse by the fact that he wasn't even allowed to return to his office to retrieve his blazer.

But that wasn't the end for Forman.

Abdur Rouf Talukder took a harsh stance, determined to make an example of him. Forman's mobile phone SIM card and email were blocked, and his car key was confiscated immediately. A week later, as Forman prepared to travel to India with his parents for medical reasons, he was stunned to find himself barred from departing. The Dhaka airport authorities informed him that a travel restriction had been imposed by the then finance secretary, Rouf Talukder.

Notably, after his departure, Darbesh secured Tk100 crore from BIFFL without any collateral, despite initially requesting Tk40 crore. This could not have happened without the involvement of Rouf Talukder, the then management, and the board of directors. An investigation is necessary, Formanul Islam concluded.