Fund embezzlement allegation is illogical and intentional: EBL MD

EasternBangk PLC (EBL) strongly refuted the allegation of fund embezzlement in alawsuit filed by a customer of the bank Murtoza Ali. The bank arranged a pressbriefing on Thursday, 27 February 2025, at its Head Office in Dhaka to explain itsposition following the lawsuit and the published reports in media.

EBLManaging Director and CEO Ali Reza Iftekhar briefed the journalists on the realscenario of the case. He informed that the case pertains to an incident of fundembezzlement that occurred in 2017, orchestrated by a former branch staffmember in collusion with external fraudsters. At that time, there was a strongsuspicion that the customer Murtoza Ali, who filed the lawsuit, might have hadconnections with the fraudsters.

AliReza Iftekhar noted that upon uncovering the fraudulent activities, EBL tookimmediate and decisive action by filing a case against the guilty staff membersand their associates. The court subsequently convicted and penalized thoseresponsible, sentencing them to imprisonment and imposing financial penalties.

Therecent lawsuit, filed nearly eight years after the incident, unjustlyimplicates the Members of the Board of Directors and the Management Committee,despite their complete lack of involvement in the matter. As per the standardpractice, the Board of Directors and members of the Management Committee of thebank are not involved in the day-to-day transactions of customers.

EBLMD informed that the incident began in 2017. Murtoza Ali was a depositor of EBLand took a loan against his deposit in July 2017. The loan approval letter wasduly sent to the customer at his registered address by registered mail, and he acknowledgedthe receipt. However, the customer failed to pay the monthly installments ofthe loan at various times, though notified via sms and his registered email bythe EBL branch. Ali never contacted the bank regarding these notices. As aresult, the loan installments became irregular. On August 19, 2020, the bank authorityliquidated the customer’s fixed deposit to adjust the loan. After theliquidation, the remaining balance of the deposit was credited to his bankaccount.

Despitethis, on February 26, 2025, Mr. Murtoza Ali intentionally filed a lawsuitagainst the members of the Board of Directors and the Management Committee withthe aim of tarnishing the bank’s reputation and concealing his own involvementin the incident of 2017. This appears to be a deliberate attempt to exert unduepressure on the bank with malicious intention.  

EBLMD asserted that the bank upholds the highest standards of corporategovernance, transparency, and legal compliance. The Bank remains committed toprotecting the interests of its customers and stakeholders while ensuring thatjustice prevails.

Headded that the EBL will take all necessary legal measures to safeguard itsreputation and the integrity of its management, Chairman, Board of Directors,and Management Committee, who have no connection to this issue.

EBLMD urged all concerned parties to rely on verified facts and judicial outcomesrather than misleading claims.