S Alam threatens international arbitration for Bangladesh | S Alam says Singapore citizenship shields against central bank ‘bullying’: FT

According to a report in the Financial Times (FT), S Alam Group owner Mohammed Saiful Alam claimed that the international investment pact and his Singaporean status protected him from a “campaign of intimidation” by the country’s central bank against his conglomerate.

In a letter sent by lawyers on their behalf, Saiful Alam, founder and chairman of industrial conglomerate S Alam Group, and members of his family have warned central bank governor Ahsan Mansoor that they may seek international arbitration proceedings against Bangladesh.

The FT reported that the letter from law firm Quinn Emanuel Urquhart & Sullivan follows Mansoor’s claims in an interview with the Financial Times that Saiful Alam and his associates had “extorted” at least Tk 1.2 trillion (about $10 billion) from Bangladeshi banks during the regime of the ousted former Prime Minister Sheikh Hasina added.

In the letter, a copy of which was seen by the FT, Mansoor accused her of making “inflammatory and unsubstantiated public comments” that amounted to a “campaign of intimidation by a business group” which she said directly or indirectly employs about 200,000 people in Bangladesh.

Saiful Alam’s letter and threat to seek international arbitration mark his most serious opposition to Bangladesh’s interim government, which came to power after a student-led protest movement toppled Sheikh Hasina.

In an interview with the Financial Times last month, Mansoor, who was appointed governor of Bangladesh Bank after Hasina fled the country in August, said S Alam and his associates had “extracted” at least $10 billion “at a minimum” from the banking system . after taking control of the banks with the help of the General Directorate of Intelligence of the Armed Forces.

Mansoor alleged that Saiful Alam and his accomplices took bank loans and inflated import bills to carry out “the biggest, biggest bank robbery by any international standards”.

S Alam Group, which has interests in sectors such as food, construction, apparel and banking, rejected Mansoor’s allegations last month, saying in a statement through Quinn Emanuel that there was “no truth” in the claims.

The FT reported that the letter to Mansoor, sent on behalf of Saiful Alam, his wife Farzana Parveen and his sons Ashraful Alam and Asadul Alam Mahir, who he said jointly own and control the “majority” of the S Alam group, described the allegations as ” known false and defamatory.”

“Your statements only further the goals of an apparent campaign to destroy the S Alam Group, and therefore investors’ investments,” the statement said.

“It’s remarkable that you seem to be leading, if not organizing, this campaign.”

The FT added that the letter said all four investors were Singaporeans.

A spokesman for Quinn Emanuel did not respond to requests for comment on when the Alam family acquired Singaporean citizenship and whether they remained Bangladeshi citizens.

The Singapore government also did not respond to a request for comment.

Bangladesh and Singapore have a bilateral investment protection agreement that dates back to 2004.

The letter said that Mansoor’s statements as central bank governor “relate to the State of Bangladesh” under the agreement.

He added that as Singaporean citizens, investors also enjoy the “rights and protections” provided by Bangladesh’s Foreign Private Investment Act 1980.

The investors’ letter said they would “take all necessary steps to protect their rights, including but not limited to” arbitration by the International Center for Settlement of Investment Disputes.

Mansoor told the FT that the statements he made in the interview were “fully justified” when asked to respond to the letter. “They are still being documented because a series of corrupt practices are widespread in many banks and over many years,” he added. “Full documentation will take some time.”