FROM PAGE 12

embezzled funds.

In a letter to Bangladesh Bank on Monday, the bank said it filed a Tk 35 crore money suit on March 11 over funds allegedly misused in the name of the Premier Bank Foundation.

It also filed two separate suits on March 15 seeking recovery of Tk 3,053.79 crore misappropriated under house rent and vendor payment heads.

The accused include Iqbal, his son, and former vice-chairman Moin Iqbal; former directors; former top officials; and others.

The Daily Star has obtained copies of the audit report, case documents, and the bank’s communication with the central bank.

Iqbal, a former Awami League lawmaker, left the country following the political changeover in August 2024. He stepped down as Premier Bank chairman in January 2025 after leading it for 26 years since its founding in 1999.

Current Chairman Arifur Rahman told The Daily Star that the Bangladesh Bank reconstituted the board on August 19, 2025. He said the new board identified major weaknesses in corporate governance and evidence of fund embezzlement during the previous board’s tenure.

To assess the scale of irregularities, six audit firms were appointed, he said, adding that a report by Ernst & Young has already been shared, while the MABS & J Partners audit quantified specific misappropriated amounts.

Arifur also said the new board is taking broader steps to strengthen accountability and governance while pursuing recovery.

OFFICE RENT

The audit found that more than Tk 406.35 crore was misappropriated between January 2018 and September 2025 through rental agreements signed and renewed at inflated rates with a related-party landlord linked to Iqbal and his family.

The bank paid rents far above market rates, along with excessive service charges, advance payments covering 24-36 months, VAT on inflated amounts, and additional cost-of-fund losses. Many premises were underutilised and commercially unjustifiable.

According to the report, Iqbal, while chairman and owner of Iqbal Centre, secured rental deals at Tk 350-506 per square foot against prevailing market rates of Tk 120-160. These arrangements formed part of a structured scheme to extract bank funds, contributing Tk 2,719.88 crore to the overall financial impact.

CSR, PUBLICITY

The audit identified Tk 607 crore misappropriated through irregular spending on CSR, publicity, advertisement, entertainment, business development, foundation contributions, and other discretionary heads.

It cited widespread control failures, including absence of competitive quotations, incomplete vouchers, missing supporting documents, lack of utilisation reports, and inadequate verification. Some payments were made to related parties or yielded no clear commercial benefit.

Of Tk 128 crore recorded as CSR spending for blankets, relief, and donations, a significant portion of goods was delivered partially, or not delivered at all. Transactions exceeding Tk 5 crore showed Tk 74.49 crore embezzled through five vendor accounts.

GENERAL LEDGER

The “Sundry Debtors” account was used as a major channel for embezzlement, the report said, with Tk 667.15 crore transferred to vendors, entities, and one personal account without valid approvals, work orders, or contracts.

Though recorded as temporary advances, the entries enabled immediate diversion of funds. The process originated at the bank’s General Services Division, passed through its Financial Administration Division, and was executed via the Banani branch.

Vendor interviews and forensic analysis confirmed that Tk 655.50 crore was misappropriated through 22 vendors and one personal account.

PRINTING, STATIONERY, BPL

Tk 129.36 crore was recorded under printing and stationery for calendars and annual reports, but only 30-35 percent of billed items were delivered. The audit found Tk 81.73 crore misappropriated, including Tk 80.62 crore paid to Color Web through inflated quantities and pricing.

In addition, Tk 44.99 crore was embezzled in franchise expenses for Khulna Tigers in the Bangladesh Premier League. The actual franchise cost was Tk 6 crore, with Tk 3.35 crore paid to the Bangladesh Cricket Board, while Tk 32.50 crore was diverted through inflated contracts.

The audit also identified hundreds of crores of taka siphoned off through inflated or unjustified spending on office interiors, renovation, construction, business development, television advertisements, advance vendor payments, and premises repairs during the period.

The Daily Star attempted to contact Iqbal and Moin via phone, text, and WhatsApp since April 6, but received no response.