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 approximately Tk 2.11 billion and include suspected abuse of power, irregular lending, recruitment-related corruption, foreign currency transactions and import bill settlements.
According to ACC sources, a special team has been formed to investigate the allegations against the two senior officials. An assistant director from the commission’s Dhaka-1 Integrated District Office has been assigned to lead the inquiry.
Investigators are examining financial transactions, relevant documents and the roles of officials involved in the alleged irregularities. The investigation aims to establish whether banking regulations were breached and whether any funds were misappropriated or transferred through unlawful channels.
Dollar purchases at unusually high rates under scrutiny
One of the main focuses of the investigation is the alleged purchase of US dollars at rates significantly above prevailing market prices at a branch of Pubali Bank. An earlier investigative report by Bangladesh Bank reportedly identified discrepancies in the prices paid for foreign currency.
According to the allegations, the prevailing exchange rate during the period in question was 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 examining why the bank purchased dollars at such elevated rates, who authorised the transactions and whether senior officials played a role in the decisions. Investigators are also seeking to determine whether any portion of the additional expenditure was misappropriated or transferred to personal accounts or other destinations.
In banking, foreign currency transactions are subject to regulatory requirements and internal controls. Significant differences between transaction prices and market rates may require proper justification and supporting documentation. However, a price discrepancy alone does not establish embezzlement or money laundering. The circumstances surrounding the transactions and the destination of the funds must be verified.
Tk 1.48 billion allegations over import bill settlements
The investigation 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.
The allegations further state that a portion of the additional money was transferred to third-party bank accounts, raising concerns about possible money laundering.
The ACC is examining the purpose of these transfers and whether they were connected to any unlawful financial activity. Relevant bank statements, transaction records and approval documents may help investigators establish how the funds were handled.
LCs and import bill settlements are essential components of international trade. Irregularities in these transactions can increase costs for customers and expose financial institutions to compliance risks. Nevertheless, the allegations against Pubali Bank require verification before any conclusions can be drawn.
Lending and recruitment practices also under investigation
Pubali 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 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 loan approvals, collateral assessments and the subsequent use of funds complied with applicable requirements.
The inquiry also covers allegations of abuse of authority and corruption in recruitment. However, the available information does not provide details of specific recruitment cases, the individuals involved or the progress of this part of the investigation.
Examining loan approval documents, borrowers’ financial positions, collateral valuations and the actual use of funds could help establish whether irregularities occurred and whether any officials facilitated them.
Chairman previously named in Delta Life Insurance case
Pubali Bank Chairman Manzurur Rahman has also been named in allegations relating to an earlier financial irregularity case, according to the report.
The case concerned alleged financial irregularities amounting to approximately Tk 29 billion at Delta Life Insurance, a prominent company in Bangladesh’s insurance sector. Rahman’s name was reportedly included in a complaint filed by the Insurance Development and Regulatory Authority (IDRA).
Allegations were also raised in that case 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 independently on the basis of relevant evidence and the applicable legal process.
The ACC’s ongoing inquiry into Pubali Bank is expected to examine the nature of the alleged financial irregularities, the movement of the funds and the responsibilities of the officials concerned.
The findings of the investigation may clarify whether the reported transactions involved regulatory breaches, financial misconduct or the unlawful transfer of funds. Until the inquiry is completed and the allegations are substantiated through appropriate evidence, the claims against the bank’s chairman and managing director remain unproven.