Exporters deny involvement in Premier Bank LC fraud, blame bank management
They allege ex-chairman Iqbal embezzled funds without their knowledge
Garment exporters, implicated in a central bank report into alleged LC fraud at Premier Bank's Narayanganj branch, have denied involvement and accused the bank management of orchestrating the financial irregularities.
Former chairman HBM Iqbal embezzled funds by opening fake back-to-back LCs in their companies' names through the branch, they said at a press briefing held at the auditorium of the Economic Reporters' Forum in Dhaka today (16 May).
On 13 May, TBS published a report based on a Bangladesh Bank investigation that found around Tk10,456 crore was siphoned off through inflated back-to-back LCs opened at Premier Bank's Narayanganj branch between 2018 and 2023. According to the probe, 29 companies were involved in the fraud in collusion with bank management and officials.
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At yesterday's press briefing, Dil Mohammad Emran, managing director of Knit Reflex Limited, said then branch manager Md Shahid Hasan Mallik and several other officials were also involved in various irregularities. "We were not provided with proper account details.".
He also questioned why Bangladesh Bank had failed to detect the alleged irregularities earlier despite conducting annual inspections and external audits. "Bangladesh Bank won't be able to prove the allegations made in its report against us," he said.
The investigation report named Mallik, who served as manager of the branch for 10 years during the period, in violation of banking regulations. It added that 24 other officials had also served extended tenures at the branch in breach of rules.
Arifur Rahman, managing director of Dowas-Land Apparels, alleged that funds had also been embezzled in his company's name without their knowledge. "These irregularities took place without our consent. BB won't be able to substantiate the claims made in its report."
Arifur urged the central bank governor to re-investigate the matter, saying the companies had written to Bangladesh Bank 22 times seeking action but received no remedy. He further alleged that Iqbal had prepared fake documents without the companies' approval.
Iqbal and Mallick could not be reached for comment despite repeated attempts.
According to the central bank probe, the 29 companies had shown inflated export orders on paper and opened back-to-back LCs worth 100% to 380% above approved limits.
