Singaporean tycoon S Alam sentenced in absentia by Bangladesh court over loan default

A naturalised Singaporean billionaire has been sentenced to five months' jail by a court in Bangladesh in a case his lawyers have condemned as a grave miscarriage of justice, with the ruling issued without notifying their client or allowing him to mount a defence.

Saiful Alam Masud, 66, his wife Farzana Parveen, 54, and their son Ahsanul Alam, 32, were sentenced in absentia in May by a court in Chattogram, where the family was born. Several associates and other relatives received the same sentence.

The case centres on the non-repayment of an 84.49 crore Bangladeshi taka (S$8.8 million) loan from Islami Bank Bangladesh, a financial institution Alam previously controlled. Bangladeshi media reported the loan was taken for the purchase of 134 buses, which were never actually bought.

Alam is the founder and chairman of the S Alam Group, a sprawling conglomerate with interests in food, manufacturing, energy, transportation, real estate and telecommunications. He, or entities linked to him, also owns several hotels and commercial properties in Singapore and Malaysia.

Lawyers from Singapore firm WongPartnership, representing Alam, told The Straits Times that their client learnt of the sentence through media reports and was not formally served or notified of the proceedings.

"The Bangladesh courts have passed orders against our client in his absence, and without giving him an opportunity to respond or present his case," the lawyers said in a statement. "Our client is therefore of the view that any court orders arising from these proceedings are without basis, invalid and were issued in breach of the rules of natural justice and amount to a grave depravation of justice."

The lawyers further maintained that OG Travels Ltd, the company at the centre of the loan default, is not part of or otherwise related to the S Alam Group, and is not owned by the billionaire.

Sweeping asset seizures

The charges are part of a sweeping investigation into Alam's finances that began after the ouster of former Bangladeshi prime minister Sheikh Hasina in August 2024. The probe has expanded rapidly, touching the S Alam Group's operations across multiple jurisdictions.

In January 2025, a Dhaka court ordered the seizure of over 321 million shares held by Alam and his family across 24 companies, valued at approximately 35.63 billion Bangladeshi taka (US$293.7 million). The order, issued by Dhaka Metropolitan Senior Special Judge Md Zakir Hossain on 16 January, followed a petition by the Anti-Corruption Commission (ACC), which claimed the family was attempting to transfer the shares amid the ongoing investigation.

Days earlier, on 14 January, the same court ordered the freezing of 68 bank accounts belonging to Alam and his family, along with the confiscation of 16 properties owned by the group.

On 10 January, the ACC filed a case against 54 individuals, including two sons of Alam, over the alleged embezzlement of approximately 11.14 billion taka (US$91.83 million) from the Jubilee Road branch of Islami Bank Bangladesh in Chattogram.

On 25 May, Bangladesh's Prime Minister's Office announced the seizure of immovable assets worth 4,264 crore Bangladeshi taka belonging to the S Alam Group.

Alam's lawyers said the freezes effectively prevented entities within the group from servicing their loan obligations. "Following the change in the government of Bangladesh on 5 August 2024, the bank accounts of various entities associated with S Alam Group were deliberately frozen without prior notice or opportunity for discussion," they said.

Shell companies and money laundering allegations

The ACC's investigation revealed that Alam had established 18 shell companies in the British Virgin Islands between 2011 and 2024, bypassing the required approval from Bangladesh's central bank. The commission has alleged the laundering of US$1 billion to Singapore, the British Virgin Islands and Cyprus.

Bangladesh Bank Governor Ahsan H Mansur has publicly accused Alam of syphoning approximately 1.2 trillion taka (US$10 billion) from the banking sector, alleging he used inflated invoices and shareholder loans to gain control of major banks, with assistance from military intelligence. Mansur described the alleged scheme as "the biggest, highest robbing of banks by any international standards."

The ACC's investigation was also informed by a 2023 report published by The Daily Star, titled S Alam's Aladdin's Lamp, which uncovered that the S Alam Group had built a business empire worth US$1 billion in Singapore without Bangladesh Bank's approval. The report highlighted the acquisition of multiple Singapore properties and alleged efforts to conceal the origins of the funds used.

In September 2024, Singapore's Suspicious Transaction Reporting Office reportedly requested detailed information on the assets of the S Alam Group, both in Bangladesh and overseas.

Singapore citizenship shield

In response to the Bangladeshi authorities' actions, Alam and his family invoked their Singapore citizenship and protections under a 2004 bilateral investment treaty between Bangladesh and Singapore, warning of potential arbitration and threatening legal action against Governor Mansur for alleged damage caused to the group.

When asked about Alam's current whereabouts and when he last returned to Bangladesh, his lawyers said he "has legitimate concerns for his safety and security should he travel there." They declined to comment further on his movements or residence.

A Dhaka court also imposed a travel ban on Alam, his wife and 11 family members in October 2024.

Interpol notices

In September 2025, Bangladeshi media reported that a court had ordered the Anti-Corruption Commission to seek Interpol Red Notices against Alam and two of his brothers. Bangladesh's Finance Minister Amir Khosru Mahmud Chowdhury confirmed in June 2026 that 10 such notices had been issued in connection with alleged money laundering cases, without naming the individuals involved.

Alam's lawyers said they are not aware of any Red Notice issued against their client and maintained there is "no basis for any such notice to be issued."

Cyprus assets frozen

The legal reach of the Bangladeshi investigation has extended to Europe. The Cyprus Mail reported that the Nicosia District Court ordered the seizure of a two-storey residential property owned by Alam and his wife in the Pareklisia area, following an application by Cyprus's anti-money laundering unit (MOKAS) on 19 May. The order was made through a mutual legal assistance process initiated by the Bangladeshi authorities.

Documents submitted to Cypriot authorities indicate investigators are examining a network of companies, trusts and financial transactions spanning Cyprus, the British Virgin Islands and Jersey, covering the period from 2009 to 2024. Among the entities under scrutiny is Eclare International, a Cyprus-registered company Alam acquired in 2016. Investigators are examining whether it was used to route funds under investigation.

Alam and his wife obtained Cypriot citizenship in 2016 through the now-defunct Golden Visa programme. They became Singapore permanent residents in 2011 and received Singapore citizenship in 2023.

International arbitration

Alam mounted a legal counteroffensive through the World Bank's International Centre for Settlement of Investment Disputes (ICSID) in Washington, where his American legal team from Quinn Emanuel Urquhart & Sullivan filed an arbitration claim in October 2025.

The claim alleges a "targeted campaign of arbitrary asset freezing, confiscation and value destruction," with damages sought estimated in the hundreds of millions. His Singapore lawyers confirmed the arbitration remains pending.

Meanwhile, Bangladesh's Chief Adviser Muhammad Yunus called on Singapore in November 2024 to assist in recovering billions of dollars allegedly transferred illicitly from Bangladesh.

"A significant amount of money was siphoned from Bangladesh to multiple countries, including Singapore," Yunus said, noting that repatriation of the funds could play a crucial role in Bangladesh's economic recovery.