Bangladesh hires global firms for asset quality review of banks from where $17b siphoned off: FT

Highlights:

• Central bank hires EY, Deloitte, KPMG for asset review
• $17b allegedly lost to regime-linked businesspeople under Sheikh Hasina
• Investigations target 10 businesses, Hasina, and her relatives
• Six banks under scrutiny, linked to tycoon Mohammed Saiful Alam

The Bangladesh Bank has hired the EY, Deloitte and KPMG, of the Big Four accounting firms, in order to conduct an "asset quality review" of the banks from where $17bn was siphoned off by people close to Sheikh Hasina.

Governor Ahsan H Mansur, in an interview with Financial times, said the Bangladesh Financial Intelligence Unit has formed 11 joint investigation teams to find and reclaim assets believed to be bought with the stolen funds, and to prosecute those responsible.

The investigation is currently looking at ten Bangladeshi businesses in addition to Hasina and her relatives, Mansur said.

The governor said the three international accountancy firms had already begun work on the asset quality review. 

"We will determine how the assets are performing, who's not performing, who took that asset, and simultaneously we will do a forensic audit," he said.

KPMG confirmed its Sri Lanka firm had been contracted to support the review. EY and Deloitte did not respond to a request for comment, according to the Financial Times.

The asset quality review was looking at six banks, in which five had shares held by S Alam, a conglomerate headed by Singapore-based Bangladeshi tycoon Mohammed Saiful Alam. 

"As part of that investigation, the old MDs of these banks have been asked to take leaves of absence so that quality is unhindered and the asset review is not interfered with," Mansur said.

Alam's lawyers Quinn Emanuel Urquhart & Sullivan told the FT that he and investors in the conglomerate had "committed no wrongdoing, and they are prepared to commence legal proceedings to protect their investments in Bangladesh, if necessary".