S Alam cites Singaporean citizenship to counter allegations by BB

Mohammad Saiful Alam, founder and chairman of S Alam Group, claims that an international investment pact and his status as a Singaporean citizen safeguard him from what he describes as a “campaign of intimidation” by the Bangladesh Bank governor targeting his conglomerate.

In a letter sent through their legal representatives, Saiful and his family members warned Governor Ahsan H Mansur of potential international arbitration proceedings against Bangladesh, according to a report by the Financial Times (FT).

The letter, issued by the law firm Quinn Emanuel Urquhart and Sullivan, followed Mansur’s comments in an interview with the Financial Times.

Mansur had alleged that Saiful and his associates had “siphoned off” at least Tk1.2 trillion ($10 billion) from Bangladeshi banks during the tenure of the ousted former Prime Minister Sheikh Hasina.

According to the FT, the letter sent by S Alam accuses Mansur of making “inflammatory and unsubstantiated public comments” which amount to a “campaign of intimidation against a business group” employing approximately 200,000 people directly and indirectly.

The legal notice and Saiful’s threat to pursue international arbitration represent his most significant response yet against Bangladesh’s interim government, led by Nobel Peace Prize laureate Prof Muhammad Yunus, which assumed power following a student-led uprising that ousted despot Sheikh Hasina on 5 August.

Mansur, a former IMF official appointed as Bangladesh Bank governor in August, previously alleged that Saiful and his associates exploited their influence to seize control of major banks with the assistance of a powerful military intelligence agency.

He claimed they had drained funds through mechanisms such as loans to new shareholders and inflated import invoices, describing it as the “biggest, most egregious bank heist by international standards”.

The letter, sent on behalf of Saiful Alam, his wife Farzana Parveen, and their sons Ashraful Alam and Asadul Alam Mahir – described as collectively owning and controlling a “major part” of S Alam Group – dismissed Mansur’s allegations as “deliberately false and defamatory”.

“Your statements only serve to further the aims of an apparent campaign intended to destroy the S Alam Group, and thereby undermine the investors’ investments,” the letter said. “Notably, you appear to be leading, if not orchestrating, this campaign.”

The document also stated that all four investors are Singaporean citizens. However, Quinn Emanuel’s spokesperson declined to comment on when Saiful Alam’s family acquired Singaporean citizenship or whether they retain Bangladeshi nationality. Similarly, the Singaporean government did not respond to requests for comment.

Bangladesh and Singapore have had a bilateral investment protection treaty in place since 2004.

The letter argued that Mansur’s statements as central bank governor are “attributable to the State of Bangladesh” under the treaty. It also claimed that as Singaporean citizens, the investors are entitled to the “rights and protections” afforded by Bangladesh’s 1980 law on foreign private investment.

The investors threatened to “take all necessary measures to protect their rights, including but not limited to” seeking arbitration through the International Centre for Settlement of Investment Disputes.

In response, Ahsan Mansur told the Financial Times that his claims are based on solid evidence. He asserted that corruption has persisted in multiple banks over the years and that efforts are underway to compile the necessary documentation, though the process will take time to complete.