B Mirror Report: A major financial scandal has been uncovered at Premier Bank, where Tk 3,088 crore is alleged to have been embezzled over a seven-year period through widespread irregularities and fraud.
The findings emerged from a forensic audit conducted by MABS & J Partners, which revealed that the misappropriation took place between 2018 and September 2025. The audit identified multiple methods used to siphon off funds, including inflated office rent, misuse of CSR funds, manipulation of accounts, irregularities in procurement, and fake renovation expenses.
The investigation was launched following directives from Bangladesh Bank in August 2025. A probe committee, formed with the approval of the bank’s current board, submitted its report in January 2026.
According to the report, the embezzlement was carried out through the bank’s General Services Division, Financial Administration Division, and the Banani branch. Evidence of involvement has been found against former chairman HBM Iqbal, his sons and former directors Moin Iqbal and Imran Iqbal, along with several former directors and senior officials.
The largest irregularity was identified in office rent agreements. Between January 2018 and September 2025, more than Tk 406 crore was allegedly siphoned off through high-priced rental contracts with entities linked to the Iqbal family. While market rates ranged between Tk 120 and 160 per square foot, rents as high as Tk 350 to 506 were charged, resulting in a total estimated financial loss of Tk 2,719.88 crore.
In addition, Tk 607 crore was misappropriated through irregularities in CSR, promotion, advertising, and business development expenditures. Of the Tk 128 crore allocated for CSR activities, a large portion such as funds for blankets, relief, and donations—was reportedly never distributed. Investigators also found that Tk 74.49 crore was diverted through five vendor accounts.
The forensic audit identified the “Sundry Debtors” account as a key channel for fund diversion. From this account, Tk 667.15 crore was transferred to vendors and entities, of which Tk 655.50 crore was later confirmed to have been embezzled through 22 vendors and a personal account.
Further irregularities were found in printing and stationery expenses, where Tk 129.36 crore was recorded despite only 30–35% of goods being actually supplied, leading to an estimated Tk 81.73 crore being misappropriated.
The report also uncovered financial misconduct linked to the Khulna Tigers franchise in the Bangladesh Premier League. Around Tk 44.99 crore was allegedly embezzled, although actual expenses were only about Tk 6 crore. Of this, Tk 3.35 crore was paid to the Bangladesh Cricket Board, while the remaining funds were misappropriated.
The audit also highlighted inflated or fictitious expenditures related to office interiors, construction, renovation, business development, advertising, and building maintenance.
To recover the misappropriated funds, the bank has already filed multiple cases. On March 11, a case involving Tk 35 crore was filed under the Premier Bank Foundation. Additional cases were filed on March 15 to recover Tk 3,053.79 crore linked to office rent and vendor-related fraud.
Former chairman HBM Iqbal, who also served as a Member of Parliament, led the bank for 26 years since its establishment in 1999 before resigning in January 2025. Reports indicate that he left the country in August 2024 following political changes.
Financial analysts say the incident raises serious concerns about corporate governance and internal controls in the banking sector, highlighting the urgent need for stronger regulatory oversight and accountability.
