5 January 2021 — A board meeting was underway at a state-owned commercial bank. Midway through, the chairman of the bank received a call. He became visibly tense. On the line was the then Principal Secretary to the Prime Minister, Dr Ahmad Kaikaus. He ordered the chairman to approve a loan proposal worth Tk837 crore in favour of an obscure Chattogram-based company, SL Techs.

The company was suspicious, with no credible business history. Sanctioning such a large loan would be unjustifiable. But Dr Kaikaus issued a clear warning — if the loan was not approved during that very board meeting, he would dissolve the entire board.

Under pressure, the board approved the proposal for the mysterious SL Techs. It was later revealed that the company was owned by none other than the driver of S Alam, a controversial businessman. The assets claimed by the company were entirely fabricated. Using a company registered under his driver’s name, S Alam looted public money, with his chief enabler being Dr Ahmad Kaikaus.

This was how Kaikaus — exploiting his influence — led a systemic plundering of Bangladesh’s banking sector.

The rise of the banking godfather

S Alam is regarded as the most notorious looter in Bangladesh’s banking history. Experts believe it was under his influence that the banking sector began to disintegrate. The autocratic Awami League government handed over control of 9 banks to S Alam. These takeovers were facilitated using state power and government backing, sometimes even through outright coercion — with Kaikaus playing the pivotal role.

Both Kaikaus and S Alam hail from Chattogram. Their association dates back to Kaikaus’s tenure as an Additional Secretary. During his PhD studies in Dallas, USA, Kaikaus reportedly met S Alam in Canada — a meeting that planted the seeds for future economic sabotage.

Upon returning, Kaikaus briefly served as an Additional Secretary before becoming Secretary to the Ministry of Power. At that point, S Alam began investing in the energy sector, becoming a beneficiary of the infamous Quick Rental Projects, aided again by Kaikaus. Despite having no prior experience in energy, S Alam was awarded multiple power plant licences.

But his true ambition lay elsewhere: banking, specifically siphoning cash and laundering it abroad. For that, empowering Kaikaus was essential.

Kaikaus — The muscle behind the money

S Alam leveraged Kaikaus’s closeness to then-Prime Minister Sheikh Hasina, ensuring he had a free hand in the financial sector. Between 2018 and 2023, Dr Kaikaus was known in Dhaka’s elite circles as “S Alam’s enforcer.”

Bangladesh Bank, the central regulatory body, traditionally oversees loan disbursements and financial irregularities. However, Kaikaus systematically undermined and dismantled this role. While the government initially appointed an economist as central bank governor, Kaikaus’s grip grew stronger with time.

He ensured the appointment of Fazle Kabir, the first bureaucrat to jump straight into the top post of Bangladesh Bank after civil service. Later, Abdur Rouf Talukder — Kaikaus’s loyal protégé — was also made governor, primarily to serve the interests of S Alam.

This period saw unprecedented corruption: billions in loans disbursed under fake names, rendering banks virtually insolvent. The entire economy slid into crisis.

The takeover of Islami Bank

Kaikaus’s greatest act for S Alam was orchestrating the hostile takeover of Islami Bank, once the largest and most profitable private bank in the country.

Directors and shareholders were harassed, threatened, and forced into a five-star hotel, where they were coerced into handing over ownership. This operation was executed with the help of military intelligence factions, allegedly acting on Kaikaus’s orders.

In addition, Kaikaus played a central role in manipulating board appointments in at least seven more banks. Once Abdur Rouf Talukder became governor, things became even easier — he followed Kaikaus’s directives without question.

Manufacturing default culture

An analysis of 10 banks revealed that Kaikaus directly interfered in all major loan decisions — from appointing chairpersons to hand-picking board members.

Following the 2018 election, Kaikaus — as Principal Secretary — brought the financial sector under direct control of the Prime Minister’s Office. He issued a circular mandating all state-owned banks to seek PMO approval for board appointments — a move that centralised power and eliminated checks and balances.

He installed his loyal bureaucrats as chairmen across state banks, turning them into pillars of an embezzlement cartel. The likes of Janata Bank, Sonali Bank, BASIC Bank, and Agrani Bank saw reckless loan distributions during this time — almost always under Kaikaus’s watch.

S Alam’s looting spree — including the laundering of an estimated Tk1 trillion — was allegedly facilitated and protected by Kaikaus. In return, Kaikaus became both influential and feared within the government.

Unaccountable power

After the controversial 2018 general election, A.H.M. Mustafa Kamal was made Finance Minister — another figure mired in corruption allegations. Upon taking office, Kaikaus informed him that the Prime Minister had ordered him not to interfere in financial affairs. From then on, Kaikaus acted as the de facto Finance Minister.

He made sure the finance and banking secretaries were his own men — including corrupt, obedient officials like Abdur Rouf Talukder and Fazle Kabir.

Through this network, Kaikaus built a mafia-like grip over the financial sector. His strategy had three pillars: Monopolise bank ownership (through S Alam), enable massive embezzlement by political cronies, facilitate money laundering

Kaikaus, serving as S Alam’s gatekeeper, systematically destroyed the country’s banking sector. The laundering of over Tk1 trillion abroad was conducted under his direct protection and cooperation.

Source: Bangladesh Pratidin