Audit Report/Iqbal family embezzled Tk 2,152 crore from Premier Bank
Former Premier Bank Chairman HBM Iqbal and his family members embezzled Tk 2,152 crore from the bank for about eight years, from January 1, 2018 to September 30, 2025, according to a forensic audit by Bangladesh Bank.
The total amount, including the direct and indirect losses suffered by the bank as a result of the embezzlement, is Tk 2,714.70 crore, of which Tk 2,151.65 crore was directly embezzled and Tk 563.04 crore was indirectly lost.
Chartered accountancy firm MABS & J Partners conducted the audit of the selected expenses at the head office and other sectors of the bank. The firm submitted the forensic audit report on March 12. It found various planned and systematic financial malpractices that were mostly related to HBM Iqbal, who was an ex-MP of the now-banned Awami League, and his family.
According to the report, large amounts of money were siphoned off through fabricated vendors and through advance bills and vouchers. About Tk 1,137 crore of the advance payments made by the bank remains unrecovered. The audit team found no reliable evidence to prove that products or services were actually supplied as per payments.
Bill Fraud Through Fake Vendors
Color Web, a printing and packaging company based in the capital’s Purana Paltan area, was involved in the largest incidence of irregularities. The bank showed total expenditure of around Tk 193 crore on stationery printing and related expenses. But in reality, products worth only about Tk 31 crore were supplied, embezzling Tk 162 crore.
The report included an interview with the proprietor of Color Web, who said the two bank accounts that were maintained in his company name were under the control of Syed Nowsher Ali, in-charge of Premier Bank’s Banani branch. He said he handed over 10 to 12 blank cheques to Syed Nowsher Ali every year and never personally got any advance payments.
The single largest evidence of irregularities was found in the case of companies owned by the UK-based businessman Noman Bashir. About Tk 745 crore was paid in advance to his companies as vendors for the period 2018 to 2025. But the audit found that goods or services worth only Tk 50 crore were actually supplied. According to a representative of Noman Bashir, he did not have full control of even his personal bank accounts.
The report further found that the bank was obliged to rent space at Iqbal Centre in Banani at an unnecessarily high rate with the allegation of influence. The head office of the bank was located in this building, which belonged to HBM Iqbal.
The bank had suffered direct losses of about Tk 406 crore and indirect losses of another Tk 202 crore through rent at several times the market rate, fictitious floor space and abnormal utility bills.
In the publicity and advertising sector, the bank showed total expenditure of around Tk 297 crore, whereas the value of actual services received was about Tk 168 crore. This means irregularities of around Tk 129 crore.
Irregularities worth about Tk 126 crore were found in the corporate social responsibility (CSR) sector. Another Tk 21 crore was allegedly embezzled in the name of entertainment expenses.
In violation of foreign exchange regulations of Bangladesh Bank, substantial amounts of foreign currency were deposited into RFCD accounts held in the names of HBM Iqbal and his family members. About $1.572 million was irregularly deposited into four separate accounts of HBM Iqbal, Imran Iqbal, Moin Iqbal and Naorin Iqbal. The audit team found no necessary documents to support these deposits.
Expenses incurred through multiple credit cards during foreign trips were also adjusted through these RFCD accounts. About $1.962 million was spent in this manner through multiple cards held in the names of HBM Iqbal, Imran Iqbal, Moin Iqbal, Naorin Iqbal and Yasna Puja Iqbal.
The audit report said that the irregularities had persisted for years by exploiting multiple weaknesses in the bank’s internal procedures and controls.