The Anti-Corruption Commission (ACC) is investigating allegations of financial irregularities and money laundering involving Pubali Bank Chairman Manzurur Rahman and Managing Director and Chief Executive Officer Mohammad Ali. The allegations concern transactions worth approximately Tk 2.11 billion, alongside claims of abuse of power, irregular lending, recruitment-related corruption, foreign currency purchases and import bill settlements.
According to ACC sources, a formal inquiry is under way into the allegations against the bank’s two senior officials. A special investigation team has been formed, with an assistant director from the ACC’s Dhaka-1 Integrated District Office assigned to lead the inquiry.
The investigation is examining financial transactions, relevant documents and the roles of officials involved in the alleged irregularities.
Dollar purchases at unusually high rates under scrutiny
One of the main areas of the inquiry concerns the purchase of US dollars at rates substantially above prevailing market prices at a branch of Pubali Bank. An earlier investigative report by Bangladesh Bank reportedly identified discrepancies in the rates paid for foreign currency.
According to the allegations, the prevailing exchange rate during the period in question was expected to remain between Tk 109 and Tk 110.50 per US dollar. However, the bank allegedly purchased dollars at rates ranging from Tk 113 to as high as Tk 123.60.
The difference between the prevailing market rates and the prices paid reportedly resulted in additional expenditure of approximately Tk 2.11 billion.
The ACC is seeking to establish why the bank purchased dollars at such elevated rates and who authorised the transactions. Investigators are also examining whether any portion of the additional expenditure was misappropriated or transferred to the personal accounts of the chairman, managing director or other individuals.
The allegations have yet to be established. The findings will depend on the examination of financial records, transaction details and other relevant evidence.
Tk 1.48 billion irregularity allegations over import payments
The inquiry also covers alleged irregularities in letters of credit (LCs) and import bill settlements. According to the allegations, customers were charged amounts exceeding prescribed rates or applicable requirements, involving approximately Tk 1.48 billion.
A portion of the additional money was reportedly transferred to third-party bank accounts, raising concerns about possible money laundering. The ACC is examining the nature and purpose of these transactions to determine whether the transfers were linked to any unlawful financial activity.
Compliance with banking regulations is essential in foreign currency transactions, LC arrangements and import payments. Irregularities in these areas can expose banks to financial losses and impose additional costs on customers. However, the allegations against Pubali Bank will require verification before any conclusions can be drawn.
Lending and recruitment practices also under examination
The bank’s lending practices have also come under scrutiny. The allegations include claims that substantial loans were granted to various businesses without adequate collateral or the required security.
Some of the loan proceeds were allegedly used to repay liabilities owed to other banks in ways that may have breached established rules. Investigators are examining whether the bank’s internal lending policies were followed and whether the relevant approvals, collateral assessments and use of funds complied with applicable requirements.
The inquiry also covers allegations of abuse of authority and corruption in recruitment. However, detailed information about specific recruitment cases, the individuals involved and the progress of this part of the investigation has not been made public in the information available.
The examination of loan documents, approval procedures and financial records could help establish whether the alleged irregularities occurred and whether any officials played a role in facilitating them.
Chairman previously named in another financial irregularity case
The report also refers to an earlier case involving Pubali Bank Chairman Manzurur Rahman. His name was reportedly included in allegations concerning financial irregularities amounting to approximately Tk 29 billion at Delta Life Insurance, a prominent company in Bangladesh’s insurance sector.
The allegations in that case were associated with a complaint filed by the Insurance Development and Regulatory Authority (IDRA). Claims were also raised at the time concerning the alleged falsification or removal of official company records involving Rahman and several associates.
However, the existence of previous allegations does not establish liability in the current investigation. Each case must be assessed on the basis of its own evidence and the applicable legal process.
The ACC’s ongoing inquiry is expected to examine the nature of the alleged financial irregularities, the destination of the funds and the responsibilities of the officials concerned. Until the investigation is completed, the allegations against the Pubali Bank chairman and managing director remain unproven.
