S Alam files international arbitration claims over asset freeze: FT report

Mohammed Saiful Alam, founder and chairman of the controversial business conglomerate S Alam Group, has filed an international arbitration claim alleging that Dhaka's asset recovery drive has cost his family's business "hundreds of millions" of dollars, according to a report by The Financial Times (FT).

Lawyers for Saiful Alam lodged the request on Monday with the World Bank's International Centre for Settlement of Investment Disputes in Washington, said the FT report, citing documents it has seen.

The claim accuses the interim government of Muhammad Yunus of waging a "targeted campaign" of asset freezes, confiscations and investigations since taking office after the ouster of former prime minister Sheikh Hasina last year.

The case threatens to complicate Yunus's push to claw back billions allegedly siphoned abroad during Hasina's 15-year rule, the FT report said. A government-commissioned white paper in December estimated illicit outflows at $234 billion.

Bangladesh Bank Governor Ahsan Mansur, who leads the recovery effort, has accused the S Alam family of diverting $12 billion through bank takeovers and inflated import invoices. The group denies the allegations, said the FT report.

The arbitration was filed under a 2004 Bangladesh-Singapore treaty. The family, now Singaporean citizens, argues it is entitled to foreign investor protections.

Last week, a Dhaka court ordered the Anti-Corruption Commission to freeze 513.18 crore shares worth over Tk 8,000 crore of 105 companies and firms owned by S Alam Group Chairman Mohammad Saiful Alam, his family members, and beneficiaries over corruption allegations.