S Alam warns of international arbitration against Bangladesh
Chairman of S Alam Group Mohammed Saiful Alam. Photo: Collected
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Chairman of S Alam Group Mohammed Saiful Alam. Photo: Collected
Mohammed Saiful Alam, founder and chairman of industrial conglomerate S Alam Group, claimed that the international investment pact and his Singaporean status protected him from the Bangladesh Bank’s “campaign of intimidation” against his conglomerate.
In a letter sent by lawyers on their behalf, Saiful and his family members have warned Governor Ahsan Mansoor that they may seek international arbitration against Bangladesh, the Financial Times (FT) reported.
The letter from law firm Quinn Emanuel Urquhart and Sullivan comes after Mansour’s allegations in an interview with the FT that Saiful and his associates had “withdrawn” at least Tk 1.2 trillion ($10 billion) from Bangladeshi banks under the ousted former prime minister’s regime – Minister Sheikh Hasina. .
According to the FT report, the letter accused Mansoor of making “inflammatory and unsubstantiated public comments” that amounted to a “campaign of intimidation by a business group” said to employ about 2 lakh people directly or indirectly in Bangladesh.
Saiful’s letter and threat to seek international arbitration mark his most serious opposition to the interim government led by Muhammad Yunus, which came to power after a student-led uprising that ousted Hasina on August 5.
Mansoor, a former IMF official who was appointed BB governor in August, told the FT last month that Saiful and his associates siphoned money out of the banking sector after taking over top banks with the help of members of the powerful military intelligence agency.
Mansoor alleged that Saiful, his associates and other groups used methods such as loans to new bank shareholders and inflated import bills to carry out “the biggest, highest 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 them.
A letter to Mansoor, sent on behalf of Saiful Alam, his wife Farzana Parveen and his sons Ashraful Alam and Asadul Alam Mahir, who are said to jointly own and control the “majority” of the S Alam Group, described the allegations as “deliberately false”. and defamatory,” reports the FT.
“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 letter said all four investors were Singaporean citizens.
The FT says a spokesman for Quinn Emanuel did not respond to its request for comment on when Saiful Alam’s family acquired Singaporean citizenship and whether they remained Bangladeshis. The Singapore government did not respond to a request for comment.
Bangladesh and Singapore have a bilateral investment protection treaty since 2004.
The letter said that Mansoor’s statements as central bank governor “relate to the State of Bangladesh” under the agreement. It said that as Singaporean citizens, the 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 the spectrum of corrupt practices is widespread in many banks and over many years. Full documentation will take some time,” he added.
The letter said investors would prefer to avoid costly and lengthy litigation and remained committed to resolving any disputes “amicably and in accordance with the law.”
But he warned the central bank governor that if he continued to “encroach on their rights” by making “false statements”, they and the S Alam Group would “have no choice but to file legal action” against Mansour individually for “the damages that you inflicted”. “.