Former Southeast Bank Chairman Alamgir Kabir Accused of Serious Misconduct and Financial Irregularities

Strategic Insights -

Alamgir Kabir, a former Chairman of Southeast Bank Ltd, is facing severe allegations of sexual misconduct, loan irregularities, embezzlement, and share market manipulation following a formal complaint submitted to top government officials and the Anti-Corruption Commission (ACC). The complaint, submitted on Wednesday, accuses Kabir of exploiting his powerful position over two decades, leading Southeast Bank to the brink of collapse.

Key Takeaways:

  • Kabir allegedly engaged in serial sexual misconduct, harassing and exploiting multiple female employees, and coercing them into sexual relationships in exchange for promotions and financial benefits.
  • Kabir approved large loans to companies owned by himself, family members, or close associates, often under fictitious names or with little to no collateral, and bypassed the bank's credit policies to fund his personal investments.
  • The complaint suggests that Kabir led a stock manipulation syndicate involving directors of the Dhaka Stock Exchange (DSE), defrauding thousands of small investors, and accumulated assets and properties abroad, including in Canada, Australia, Dubai, Singapore, and Malaysia.
  • Southeast Bank is struggling to recover BDT 232 crore lent to Bay Leasing – an institution chaired by Kabir's wife – and has accumulated significant losses as of December 31, 2023.
  • Kabir made substantial financial donations from the bank to support the treasury of former Prime Minister Sheikh Hasina during her rule, further politicizing his role in the bank.
  • Kabir remains a director on Southeast Bank's board despite being forced to step down as Chairman following public protests in 2024, raising concerns for regulators and stakeholders.

Statistics:

  • BDT 120 million fine imposed on Kabir by the Bangladesh Securities and Exchange Commission (BSEC) over irregularities involving Bay Leasing and Investment Ltd.
  • BTD 172 crore in losses accumulated by Bay Leasing as of December 31, 2023.
  • BDT 232 crore lent by Southeast Bank to Bay Leasing, which is struggling to recover the amount.
  • Southeast Bank's current total assets.
  • 2004 to 2024: Kabir's period as Chairman of Southeast Bank Ltd.

Sources:

  • A formal complaint submitted to the Chief Advisor to the government, the Governor of Bangladesh Bank, and the Chairman of the Anti-Corruption Commission (ACC).
  • The Bangladesh Securities and Exchange Commission (BSEC).
  • Department of Banking Inspection-4 of the Bangladesh Bank.