Tk4cr embezzled from Bangladesh Commerce Bank as 'hospitality expenses', action ordered against 13 officials
A Bangladesh Bank inspection found that the Tk4 crore was credited as “incentives” to the accounts of 13 officials – eight at the head office, four at the principal branch and one at the Dilkusha branch.
Bangladesh Bank has found evidence that Tk4 crore was embezzled from Bangladesh Commerce Bank by showing the money as "hospitality expenses" for securing a Tk100 crore deposit, and has ordered administrative action against 13 officials, including dismissal of two.
In a letter to the bank's managing director on 25 August, the central bank asked it to take action against the officials and report the measures within a month.
A Bangladesh Bank inspection found that the Tk4 crore was credited as "incentives" to the accounts of 13 officials – eight at the head office, four at the principal branch and one at the Dilkusha branch. The entire amount was later withdrawn in cash through 14 cheques.
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The two officials ordered to be dismissed are Senior Executive Vice President (SEVP) Delwar Hossain and Senior Principal Officer (SPO) Hamidur Rahman. The investigation found that the money was withdrawn in cash through their accounts.
The other 11 officials are First Assistant Vice Presidents (FAVP) Yusuf Siddiqullah, Sujan Das and Monirul Haque; Assistant Vice Presidents (AVP) Saleh Amded, Tasnuba Majumder and Ahsan Habib; Senior Officers (SO) Rifatul Mursalin and Shahinur Rahman; Officers Sarwar and Saifur Rahman; and Principal Officer (PO) Adnan Shafik.
Commerce Bank Managing Director Md Obaidul Haque told TBS that the bank was taking action against the officials within the one-month deadline.
He said the bank had secured the Tk100 crore deposit from Gazipur City Corporation at an interest rate of 2.5%, and the officials received the money as incentives.
"We will send our board's decisions regarding the incentive package to Bangladesh Bank through a written statement," he said.
Tk4cr 'hospitality expenses' to secure deposit
According to Bangladesh Bank's investigation, Gazipur City Corporation deposited Tk100 crore with Commerce Bank at 2.5% interest after withdrawing the money from another bank.
The bank recorded Tk4 crore as "hospitality expenses" for securing the deposit. However, the Bangladesh Bank report said the money was actually used as bribes for influential individuals at the city corporation.
After reviewing CCTV footage and interviewing the bank's driver, investigators found that Tk3.04 crore was transported in sacks in a bank vehicle to Uttara Club on 7 June. Another Tk96 lakh was delivered to Gulshan Club the following day.
The Tk4 crore was withdrawn using the accounts of the 13 officials. Bangladesh Bank described the practice as an offence punishable under the Money Laundering Prevention Act.
An internal report by MD Obaidul Haque highlighted the Tk4 crore "hospitality" expense for securing the deposit. The bank's board later approved the expenditure, while the report described the deposit mobilisation as an achievement.
The officials' accounts were credited with varying amounts as "incentives" at around 7pm on 4 June, after office hours. The money was withdrawn in cash from the principal branch on 7 June.
The investigation found that Hamidur Rahman, the managing director's personal officer, informed the officials about the arrangement beforehand. Cheques were collected from them in advance and signed. Records also showed deposits and withdrawals in Hamidur's own account.
Spending continued after campaign ended
The inspection also found that Tk4 crore was spent as incentives under the "Ujjibon Deposit Campaign" even after the campaign ended on 14 May 2026, without subsequent board approval.
The report also highlighted allegations of irregularities involving Delwar Hossain at his previous workplace, NRBC Bank, where he was dismissed over serious financial irregularities.
The Anti-Corruption Commission has a pending case against him over alleged embezzlement of more than Tk74 crore and failure to repatriate export proceeds worth $7,03,095. A Commerce Bank audit also raised allegations of trade-based money laundering against him.
According to the report, Bangladesh Bank instructed Commerce Bank on 28 June 2026 to dismiss Delwar, but the bank management did not implement the order.
Former Bangladesh Bank Executive Director Md Obaidul Haque is currently managing director of Commerce Bank, while former central bank executive director Mohammad Ataur Rahman is its chairman.
