B Mirror Report: Up to 26 Narayanganj-based export-oriented clothing manufacturers have called for justice on what they called illegal loan creation involving the Narayanganj branch of Premier Bank, claiming extensive financial irregularities that have forced many businesses to close.

At a press conference held on Saturday at the Economic Reporters Forum (ERF) office in Dhaka’s Paltan area, the affected business owners claimed that loans worth hundreds of crores of taka were shown against their names through fake back-to-back Letters of Credit (LCs).

Reading out a written statement, owner of Doa’s Land Apparels Arifur Rahman said the alleged irregularities involved 43 companies in total, including 26 export-oriented ready-made garment units.

He cited the case of Total Fashions, which reportedly had a credit limit of Tk 50 crore at the Narayanganj branch and had legitimately taken Tk 48 crore in loans. However, he alleged that in 2023, loans suddenly ballooned to Tk 360 crore based on fake back-to-back LCs, without the knowledge of the company owner.

According to the complainants, a similar pattern of irregularities was used across multiple firms. They said companies that exported goods worth about Tk 1 crore were shown to have back-to-back LC facilities of up to Tk 75 lakh, but in reality LCs worth several crores were opened.

They further alleged that instead of settling liabilities through export proceeds, transactions were manipulated through a company named “Premier Exchange,” which was used to purchase dollars and adjust payments, ultimately creating fraudulent loan entries in the names of the exporters.

The businessmen said they first suspected irregularities after noticing unusually high LC values in their accounts, but despite repeated attempts, they failed to get clarification or redress from the bank.

They claimed that they only fully understood the scale of the alleged fraud after a media report published on November 6, 2024, which alleged the embezzlement of Tk 3,081 crore through fake export declarations.

Since then, they have pursued the matter with various authorities but said no effective remedy has been provided. They also alleged that even after a High Court directive, the bank has not disclosed detailed information on how much loan has been shown against each account.

The affected exporters urged authorities to investigate the matter and ensure accountability, warning that many of the impacted businesses are now on the verge of shutting down.