Shares in governor co-founded firm tied to S. Alam surge around appointment

Shares in a small, loss-making technology company in which Bangladesh’s newly appointed central bank governor is a sponsor shareholder, and which is controlled by individuals linked to the S. Alam Group, rose sharply in the days before and after his appointment, according to stock exchange data and corporate filings.

On February 24th — a day before the government named Mostaqur Rahman as governor of Bangladesh Bank — shares in Intech Limited climbed about 10 percent, from Tk 30 to Tk 33. A day after his appointment, the stock peaked at Tk 38.5, marking a further rise of roughly 17 percent. Since then, the share price has fallen back to Tk 32.9 as of March 4th.

Annual reports show that Mostaqur has been listed as a sponsor shareholder of the publicly traded company since at least 2010. Intech’s finances, however, appear strained. In its most recent quarter, it reported revenue of Tk 19 lakh and a net loss of Tk 25.6 lakh.

Netra News found no evidence that anyone improperly benefited from Mostaqur’s appointment in connection with the recent share movements. Nonetheless, the price surge comes amid a broader rally in companies perceived to be politically-linked.

Intech is currently controlled by members of the family of Abdus Salam Labu, vice chairman of the S. Alam Group, and his associates. Labu is also the younger brother of Saiful Alam Masud, owner of the S. Alam Group.

The conglomerate’s only listed arm, S. Alam Cold Rolled Steels Ltd., has also climbed, reaching Tk 17.6 — its highest level since November last year.

Labu’s son, Atiqul Alam Chowdhury, serves as chairman of Intech, while Labu is named in company filings as an adviser. Several directors of Intech previously held senior roles at Al-Arafah Islami Bank during Labu’s tenure as chairman.

Before the fall of Sheikh Hasina’s government in 2024, the S. Alam Group controlled Al-Arafah Islami Bank and several other lenders. Within weeks of her overthrow, Al-Arafah and seven other banks linked to the group underwent sweeping board and management changes under central bank supervision. Mostaqur’s predecessor, Ahsan H. Mansur, had launched a crackdown on the conglomerate and publicly accused its owner of siphoning billions of dollars from banks under its control.

The episode highlights the potential conflicts inherent in appointing an active businessman to lead the central bank in a country where the regulator oversees commercial lenders, manages foreign exchange reserves, sets interest rates, and directs anti-money laundering efforts. Given the interim government’s earlier campaign against oligarchs linked to the previous administration — with the S. Alam Group among the most prominent targets — Mostaqur may face decisions involving billions of dollars in loans tied to entities associated with his business partners.

The governor, when contacted, asked for a week to respond. Netra News gave him two days to reply to the detailed set of questions, but he had not responded to the questions as of publication on Wednesday.

Intech’s links to individuals connected with the S. Alam Group appear extensive. ANM Yeahea and Ahamedul Hoque, both former directors of Al-Arafah Islami Bank representing the group, acquired shares in the company in 2021. The wife of Badiur Rahman, who also served as chairman of the bank and is now managing director of Intech, purchased shares the same year. At the time, however, the S. Alam Group denied being an institutional investor in Intech.

The governor’s wife, Akhtar Sanjida Kasem, is a chartered accountant and managing partner at A. Qasem & Co. Documents reviewed by Netra News show that at least two S. Alam Group entities engaged the firm, through EY Bangladesh, to audit financial statements in 2017 — the same year the group assumed control of Islami Bank and began accumulating what would eventually amount to roughly $8 billion (Tk 93,000 crore) in liabilities across several lenders. There is no suggestion of any impropriety on Kasem’s part. A. Qasem did not respond to requests for comment.

Jyoti Rahman, a former macroeconomist at the International Monetary Fund who frequently writes on Bangladesh’s economy, said Mostaqur should divest from any company that gives the appearance of a conflict of interest to preserve his credibility. 

“Caesar’s wife must be beyond reproach,” he said.

‘Inactive role’

Contacted by telephone, Ubaida Asadi, a director and former managing director of Intech, said he did not personally know Mostaqur. Asadi’s father, Liakat Ali Chowdhury, oversees a shipbuilding company in Chittagong and previously chaired the risk management committee of Al-Arafah Bank during Labu’s tenure.

Intech’s company secretary, Jaidul Islam, initially denied that the sponsor shareholder named Mostaqur Rahman was the same person appointed governor of Bangladesh Bank. He later acknowledged that he did not personally know the shareholder concerned and could not ascertain his identity.

ATM Mahbubul Alam, a former chairman and now a director of Intech, confirmed that the sponsor shareholder was indeed the current governor, who he called a family friend. 

Alam, who’s also known as Mahbub, clarified Mostaqur had consistently held an insignificant share of the company. Records show Mostaqur owns little more than 0.5% of Intech.

Mostaqur had been active in the early 2010s but never assumed full control, Mahbub said. He added that Mostaqur helped facilitate Mahbub and his associates joining the company’s board of directors, which at one point led to Mahbub serving as its chairman.

“Still, since he was a sponsor shareholder and some of the people he knew were among the shareholders, he had to play a role — active or passive,” Mahbub said.

Mahbub added that bringing members of Abdus Salam Labu’s family and associates into the company in 2020 had been his own initiative. He said they were brought in because they were “very renowned capital market figures” and that the move was intended to meet regulatory requirements that controlling shareholders hold at least a 30% stake.

“To be very honest, [Mostaqur] was reluctant with bringing these new shareholders on board and had no part in it,” he said, referring to the Labu family. 

Intech and several of its directors have been fined multiple times by the securities regulator. The company also drew scrutiny after investing in agricultural ventures despite being registered as an information technology firm.

‘Bigger challenge’

A cost and management accountant by training, Mostaqur owns a medium-sized sweater manufacturing business. Through BGMEA, the garment industry lobby, he served on a committee that dealt directly with Bangladesh Bank. He also holds stakes in a tour operating company and a real estate firm. Almost all of his business interests are sensitive to exchange rates or interest rates, which fall under the core responsibilities of the central bank.

Local reports suggest that a Tk 89 crore loan associated with his garment company was rescheduled with a Bangladesh Bank approval months before his appointment to the central bank. After becoming governor, one of his first acts was to approve a lending facility allowing export-oriented industries — overwhelmingly dominated by the garment sector — to take loans to pay workers’ wages.

Jyoti Rahman, the economist, said the governor can shield himself by recusing himself from decisions that may involve his direct interests or his associates’. 

But Mostaqur’s bigger challenge would be structural, Jyoti said.

“Not just him, any businessman would prefer a lower interest rate, which they believe is good for business, but the same may not be good for the rest of the economy,” he added. “Exporters always prefer a weaker currency so they can export more. But that means imports become more expensive, and Bangladesh imports more than it exports.”

Mostaqur also has ties to the ruling Bangladesh Nationalist Party. He served on the party’s 41-member central election management committee and was a regular presence at BNP headquarters during the recent campaign, according to multiple party officials who spoke on condition of anonymity. 

“He was close to the seniors,” said one. “We often saw him with Nazrul Islam Khan and Ismail Zabihullah” — both now advisers to Prime Minister Tarique Rahman with ministerial rank.●

(The story was updated to note that the governor had asked for a week to respond. Netra News set a two-day deadline, and he did not respond afterwards. In the second paragraph, we corrected that the peak of the Intech’s share was Tk 38.5, not Tk 38.8 as was previously written. We regret the error.)