[🇧🇩] Corruption Watch

[Saif]

Corruption and capital flight

AS A social worker, it is a great opportunity to work with grassroots people. I worked for two years and seven months...

www.newagebd.net

Corruption and capital flight
Mohammed Mamun Rashid | Published: 00:00, Mar 07,2024

AS A social worker, it is a great opportunity to work with grassroots people. I worked for two years and seven months at Transparency International Bangladesh. It enhanced my visionary zeal for the anti-corruption campaign a lot because of my work in civic engagement, social movements, and good governance. Still, I abide by it. Once I asked one of my neighbours, ‘what do you mean by good governance?’ Naturally, he did not answer theoretically, as we usually expect. But he gave some real expectations from his heart. He said, ‘I want an honest officer-in-charge, land registration without bribery, easy access to public health services, etc.’

People’s pains, predicaments and expectations are often reflected in newspaper or television reports. Corruption and money laundering are two of the most important factors that cause inequality to grow and make people suffer. Corruption is not limited to bribery but can take a number of other forms, such as extortion, influence peddling, nepotism, fraud, the use of speed money (money given to government officials for speeding up their consideration of a business matter falling within their jurisdiction), embezzlement, etc. There are three broad forms of corruption: petty administrative or bureaucratic corruption, grand corruption and state capture or influence peddling.

Petty corruption means isolated corrupt transactions by individual public officials who abuse their office; grand corruption occurs when vast amounts of public resources are devoured or misappropriated by state officials, usually members of the political or administrative elite; and state capture or influence peddling takes place when actors of the private sector operate in collusion with public officials or politicians for their mutual and private gain. Corruption in the public sector, particularly in developing and lower-middle income countries like Bangladesh, is a more serious problem than that of the private sector.

Corruption in Service Sectors: National Household Survey 2021 by the TIB shows that overall, 70.9 per cent of households have been victims of corruption while taking services from 17 sectors. The seven most corrupt sectors are, according to the survey, law enforcement agencies (74.4 per cent), passport offices (70.5 per cent), BRTA (68.3 per cent), judicial services (56.8 per cent), health (48.7 per cent), local government institutions (46.6 per cent) and land services (46.3 per cent). The estimated total amount of bribery at the national level is around Tk 108,301.1 million, which is 5.9 per cent of the national budget (revised) for the fiscal year 2020–21 and 0.4 per cent of the GDP of Bangladesh.

The Corruption Perceptions Index 2023, released by Transparency International on January 30, 2024, shows further worsening of Bangladesh’s performance. The country has scored 24 on a scale of 100, the 10th lowest global score.

Another sophisticated, heinous, and complex crime is money laundering. The Global Financial Institute, a Washington-based think tank, identified four major ways of money laundering: under-invoicing of exported products, over-invoicing of imported goods, Voice Over Internet Protocol business, and Hundi. According to a Global Financial Integrity report for 2020, every year more than $7.5 billion is laundered from Bangladesh, much of which is via the mis-invoicing of export-import trades. The reports say dishonest businesses, politicians and financial institutions are often involved in smuggling money out of the country. Sadly, the country does not seem to be effectively using any of the tools to recover laundered money. The process of claiming money back typically involves identifying laundered money, the persons or groups behind the crime, and the location; gathering evidence; filing lawsuits in the country the money has been located in; obtaining a judgement from the court; and enforcing the judgement in the specific country.

Money laundering damages financial sector institutions that are critical for economic growth, promotes crime and corruption that slow economic growth, and reduces efficiency in the real sector of the economy. These problems also have social consequences. The increasing inequality causes social degeneration. One of the most critical damages of black money is its negative effect on income distribution. The gap between individuals in terms of income distribution increases the tendency to commit crimes and makes money attractive. Moreover, it is a serious burden for honest people to maintain their daily lives, which is difficult to measure by so-called indicators. The silent pains of those people are being overlooked.

The agencies, such as the Anti-Corruption Commission and the Bangladesh Financial Intelligence Unit, that are mandated to curb corruption and money laundering appear to lack capacity, resources and logistical support to deliver their duties. In addition, these institutions are not free from political and bureaucratic influence. Overall, there is a lack of political will.

Corruption and money laundering are like a metastatic cancer in Bangladesh. It is a serious threat to our economic growth. This metastatic cancer also creates hindrance to other social progress. The government never fails to give a lip service to the issue, often vigorously stating its zero tolerance policy against corruption, but when it comes to walk the talk, it fails.

Dr Mohammed Mamun Rashid has recently obtained his PhD degree from Universiti Sains Malaysia.​

 

[Saif]

Who will restrain prices in the month of restraint?

A government’s job is not to preach about people’s food choices, but to keep food prices stable and reasonably down. When it starts to preach, more often than not it is trying to deflect scrutiny of what it cannot achieve through actions.

www.thedailystar.net

Of Magic & Madness​

Who will restrain prices in the month of restraint?​

FILE ILLUSTRATION: BIPLOB CHAKROBORTY

A government's job is not to preach about people's food choices, but to keep food prices stable and reasonably down. When it starts to preach, more often than not it is trying to deflect scrutiny of what it cannot achieve through actions. So when the industries minister advises us to choose locally sourced fruits like plums and guavas for iftar—over imported delicacies such as dates or grapes—as a means of cutting down on Ramadan costs, any sincerity in his statement is lost on the consumers who are overwhelmed by the relentless tide of price rises over about three years now. Instead, it comes across as insincere, classist, and oddly evasive, as if he was responding to an unuttered accusation.

When people worry about food prices in Ramadan, they don't mean just grapes or dates. Despite the minister's claim, these are still outliers—one a luxury best afforded in kinder economic times, and the other a starter best had in small quantities. No one, frankly, rues not having more dates on their iftar plates. But it is their prices which are worrisome, where they become one with essential food items, with the humble date going for as much as Tk 1,500-2,000 per kg now, up from last Ramadan's Tk 500-700. This is even after the government reduced import tariffs on dates earlier last month. Prices of almost all other fruits have similarly shot up. One kg of sugar, another iftar essential, will set you back about Tk 140-150.​

​

Before we get into further details, consider this: if the total number of households in the country is 4.1 crore, price rises have affected over 2.9 crore (or 71 percent of all households), according to a World Bank report published in early January. Since then, nothing has changed to assuage their concern. On the contrary, food prices witnessed a fresh spike weeks before the start of Ramadan, which is when you usually expect it to happen.
As per a recent report by this daily, multiple price shocks have sent consumers reeling, with things set to turn worse following the imposition of newly set electricity prices. Barring exceptions, prices of most Ramadan staples including chickpeas, moshur daal, rice, eggs, and all varieties of meat have seen an increase. The price of onion has slightly decreased following news of imports from India, but only just. It is unlikely to go down much further if the state of other food imports is any indication.

So, try as the government may to get us to buy into its upbeat Ramadan forecast, with the finance minister even refusing to accept inflation as a major issue, the fact is that prices in general remain in the stratosphere. The question is: why can't the government control them despite supposedly enhancing market monitoring, vowing tough legal action against hoarding, shoring up supplies, and reducing import duties on some items? Checking commodity prices was one of the priorities outlined in Awami League's election manifesto. What possible reason could there be for an all-powerful government, saturated with MPs boasting enviable business pedigree, to fail to deliver on one promise?

Last week, at a meeting organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), business leaders identified four major reasons for the surge in prices, including the dollar crisis and the currency's increased rate, extortion, syndicates, and still-high import duties. Importantly, they said that traders are forced to pay extortionists at multiple stages while bringing a product from grassroots to the wholesale markets. Even after buying from wholesale markets, retailers also have to pay additional money to secure their release. Apart from extortion, traders also blamed the middlemen, saying a product changes hands at least four times before coming to the wholesale markets. Thus, prices of locally sourced items may increase abnormally.

There are other factors and forces as well. We can talk about market monopolies, or systemic issues making imports costlier as they reach our shelves. We can talk about the trickle-down effects of high costs of fuel and utilities, as well as ballooning indirect taxes hurting people's purchasing capacity. We can talk about the culture of rules violation that nullifies any price control measure, and also the culture of non-enforcement by relevant agencies. We can even talk about excessive greed. Many influences coalesced to create the perfect storm that is our commodity market.

But one aspect that rarely gets a mention from government functionaries is the crippling effect of patronage politics. The gaggle of syndicates, middlemen, hoarders, and extortionists who exert an oversized influence on the supply chain draw their power from their association with the ruling establishment. So when the government talks tough love, how tough can it be, really? How far or long can the deputy commissioners—who have been lately tasked with checking hoarding and ensuring the smooth transportation of supplies—go when the many beneficiaries of patronage politics push back? For they will push back, sooner or later.

Organised highway gangs are perhaps the most visible of these disruptive forces. Last month, Prothom Alo reported how about Tk 2 crore was being extorted every month from goods-laden trucks in Sylhet city. The men behind this racket? Activists of different groups and sub-groups affiliated with Sylhet Chhatra League. On Tuesday, Transparency International Bangladesh further revealed that private bus operators are forced to pay at least Tk 1,059 crore in bribes annually to unscrupulous BRTA officials, police, transport associations, staffers of city corporations and municipalities, and individuals affiliated with political parties. The list of "collectors" is really stupefying. What about goods-carrying trucks? One can only guess what insanity they, too, are subjected to on their route.

Against this backdrop, efforts like adjusting fuel prices, fixing rates of certain essentials, conducting drives against hoarding and price gouging, or occasional import tariff reductions are but baby steps that will take us only so far. To really make an impact, what we need are institutional reforms designed to prevent scope for undue influences in the market and resolve all systemic issues. If the government really wants to control or bring down prices during Ramadan and afterwards, it must be willing to go after its "own people."​

 

[Saif]

Govt hostage to syndicate: GM Quader

The government has failed to control the price hike of essentials, said Jatiyo Party Chairman and Leader of the Opposition GM Quader, adding that the government itself has become a hostage to the syndicate.

www.thedailystar.net

Price hike

Govt hostage to syndicate: GM Quader​

The government has failed to control the price hike of essentials, said Jatiyo Party Chairman and Leader of the Opposition GM Quader, adding that the government itself has become a hostage to the syndicate.

He made the remarks while talking to journalists in Rangpur yesterday.

"Most of the country's products are import-dependent. Many businessmen in the country do not have the ability to import, only businessmen with money can do so, and many are taking this opportunity. Also, most of those who are involved in importing from outside are at the government's policy-making level. This has already formed a syndicate," said GM Quader.

All these have caused the government to be hostage to the syndicate, he said.

"The government can not control the price hike now, even if it wants to. Without competition among traders, it is not possible to control the market," he added.

Regarding JP's recent crisis, GM Quader said those who are involved with the split in JP are outsiders. Kongkon Karmaker, Monday, 11 March 2024​

 

[Saif]

Ban on foreign travel, trade licence, national award for wilful defaulters

Bangladesh Bank issues new guideline on wilful defaulters today

www.thedailystar.net

Ban on foreign travel, trade licence, national award for wilful defaulters​

Bangladesh Bank issues new guideline on wilful defaulters today

Wilful defaulter will be banned from travelling abroad and they will not be allowed to receive trade licences and national awards, according to a guideline issued by Bangladesh Bank today.

The guideline was prepared for identification and finalisation of wilful defaulters and actions to be taken against them.

The banking watchdog took the move when the banking sector has been hit by massive irregularities of some lenders, directors' undue intervention and rising bad loans.

On February 4, the Bangladesh Bank unveiled a roadmap to bring down default loans below 8 percent by June 2026 from 9 percent in 2023 and ensure corporate governance in the banking sector.

The BB has taken 17 initiatives to implement the roadmap.​

 

[Saif]

How tough can Bangladesh Bank be with wilful defaulters?

Any success of its roadmap will depend on its enforcement

www.thedailystar.net

How tough can Bangladesh Bank be with wilful defaulters?​

Any success of its roadmap will depend on its enforcement

VISUAL: STAR

Bangladesh Bank's newly unveiled measures to rein in wilful loan defaulters—as part of a roadmap to bring down such loans to less than 8 percent by June 2026—may deliver results if properly enforced. But that's a big "if" given the central bank's past performance in this regard. On paper, its plan appears robust as it outlines stringent measures aimed at both banks and borrowers. Banks, as per the new guideline, will have to form a dedicated unit called "wilful defaulters identification unit" by April 9, and must carry out all related activities through it. The guideline also details the criteria for identifying wilful defaulters as well as punitive measures for those found guilty.

These punishments include bans on foreign travel and restrictions on trade licences. Wilful defaulters may also have trouble with the registration of moveable and immovable properties, and cannot become bank directors for a certain period of time. They will not be eligible for any national award, or any interest waiver and loan rescheduling facilities either. The problem with such measures, however, is that they are seldom, if ever, enforced. After all, what enables these politically connected businessmen to get their hands on loans in the first place also enables them to get out of any complication thereof. If it didn't, we'd have seen more action on the relevant clauses of the Finance Companies Act, 2023 that also provide travel bans and trade licence restrictions as well as criminal prosecutions.

As things stand, the banking sector stands at a critical junction. Defaulted loans soared to Tk 145,633 crore by the end of 2023, accounting for nine percent of all outstanding loans. The health of 38 banks also deteriorated between December 2020 and June 2023, according to a recent estimate, owing largely to mismanagement, loan irregularities and scams. The situation has reached such a point that the central bank has threatened to force "mergers and acquisitions of weak banks" if the latter fail to do so voluntarily by December this year. A lot of the problems facing our banks will disappear if we could just reduce the scope for habitual defaulters.

So, while we appreciate Bangladesh Bank sending the message that reckless lending practices will not be tolerated, we must recognise that the true challenge lies in ensuring consistent compliance with its guidelines across all banks. There are also concerns about rescheduling or writing off bad loans to show improved performance, which must be addressed. Regulators must go tough on wilful defaulters this time.​

 

[Saif]

‘RAJUK, most corrupt entity in country’

Breaking News, International News & Multimedia

thedailynewnation.com

‘RAJUK, most corrupt entity in country’​

19 Mar 2024, 12:00 am

Staff Reporter :

The Bangladesh Restaurant Owners Association (BROA) has asserted that the Rajdhani Unnayan Kartripakkha (RAJUK) is the most corrupt institution in the country.
Following the Baily Road fire incident, they alleged that RAJUK is extorting money from restaurants under the guise of a drive.

They also announced that all restaurants will remain closed on Wednesday (20 March) in protest against the ongoing crackdown on such eateries regarding safety measures.

Leaders of the association declared on Monday (18 March) during a press briefing at the Nasrul Hamid Auditorium of Dhaka Reporters Unity (DRU) in Segunbagicha that if necessary, all restaurants will be closed indefinitely in the future.

Imran Hasan, the general secretary of the association, alleged that there had been no pause in the arrest of workers and the crackdown on restaurants even during Ramadan, resulting in a decline in customer footfall, which was further worsened due to negative publicity.

“It is high time we should be allowed to reopen the closed restaurants so that restaurant workers can be paid their salaries, allowances, and bonuses before Eid,” he said.

Calling for an immediate halt to the “injustices” occurring in the restaurant sector, he said, “No benefit can be reaped from these arrests and restaurant closures if there is no proper guidance for crisis management in critical situations.”

He recommended providing SOPs for fire safety and suggested forming a high-level task force for a permanent solution.

He urged safeguarding investments and employment in the country’s restaurant sector, providing guidance for safe food supply, and promoting cooperation.

“Extend a helping hand. End this unnecessary drama during Ramadan. Business owners should not be blamed for the negligence on the part of regulatory bodies,” he added.

Insisting that the industry remains largely neglected, he said the sector can be managed effectively through proper accountability mechanisms if building owners, restaurant owners, and government institutions collaborate.

“This sector did not flourish overnight.

We obtain licenses/permits and regularly pay taxes to the government. Despite the sector’s significant contribution, the sector faces challenges while obtaining licenses and permits due to the complexities in procedures,” he said.

Earlier this month (5 March), BROA reported the closure of nearly 40 restaurants in the capital amid the ongoing crackdown.

According to data from the Bangladesh Bureau of Statistics (BBS), there are over 481,000 restaurants across the country, employing three million workers.

Nearly 200 million people are directly or indirectly dependent on this sector.

The restaurant industry in Bangladesh is valued at $3.79 billion, with investments totaling Tk2,00,000 crore.

On 29 February, 46 people were killed in a devastating fire at Green Cozy Cottage building on Bailey Road in the capital. Since then, the Dhaka Metropolitan Police has been conducting drives in various restaurants.

A total of 872 people have been arrested, and 20 cases have been filed so far during these drives. Disciplinary action was taken in 887 cases.

The administration sealed many restaurants due to allegations of insufficient fire safety measures and irregularities.​

 

[Saif]

TIB slams move to drop wealth statement obligation for govt employees, warns of more corruption

Transparency International Bangladesh (TIB) has strongly criticised the move to amend the Government Servants (Conduct) Rules-1979, which would repeal the obligation for government employees to submit wealth statements. If the existing rules are amended to relax the obligation, it would exempt nea

thefinancialexpress.com.bd

TIB slams move to drop wealth statement obligation for govt employees, warns of more corruption​

FE ONLINE REPORT

Published :​

Mar 19, 2024 20:38

Updated :​

Mar 19, 2024 20:51

Transparency International Bangladesh (TIB) has strongly criticised the move to amend the Government Servants (Conduct) Rules-1979, which would repeal the obligation for government employees to submit wealth statements.

If the existing rules are amended to relax the obligation, it would exempt nearly 1.5 million employees from accountability, facilitating corruption, the TIB said in a statement on Tuesday, calling for the immediate cancellation of the amendment move.

The Ministry of Public Administration recently initiated amendments to the Government Servants (Conduct) Rules, 1979, aiming to repeal the obligation for government employees to submit asset statements.

Once the draft amendment by the Ministry of Law, Justice, and Parliamentary Affairs is scrutinised, it will be forwarded to the Committee on Administrative Development for further consideration.

Expressing grave concerns about this, Dr Iftekharuzzaman, executive director of TIB, said that it could embolden dishonest government officials into engaging in corruption.

The proposed amendment contradicts the government’s electoral promise and commitment to zero tolerance against corruption at the highest levels, he said.

Dr Iftekharuzzaman pointed out that initially the obligation was to submit asset statements annually, which was later relaxed to every five years due to government employees’ reluctance.

However, many government servants did not adhere to even this extended timeframe, he said.

The TIB executive director said that the absence of asset statement submissions could evidently lead to increased corruption among government employees, facilitate the accumulation of illicit wealth, exacerbate difficulties for citizens seeking government services, escalate illegal financial transactions, and ultimately undermine efforts to establish a well-governed system.​

 

[Saif]

Hallmark loan scam: MD Tanvir, wife among 9 get life imprisonment

Breaking News, International News & Multimedia

thedailynewnation.com

Hallmark loan scam: MD Tanvir, wife among 9 get life imprisonment​

19 Mar 2024, 3:52 pm

NN Online Report: Saying that the highest penalty for embezzlement should be death sentence, a Dhaka court today (19 March) sentenced Hallmark Group Managing Director Tanvir Mahmud, his wife Jesmin Islam, and nine others to life imprisonment in one of the cases filed over the Tk3,500 crore Sonali Bank loan scam.

Tanvir and Jesmin, also the chairperson of Hallmark Group, were also fined Tk5 crore each.

Additionally, Sonali Bank’s former managing director Humayun Kabir and eight others have received various prison terms.

Dhaka Special Judge’s Court-1 Judge Abul Kashem passed the verdict today (19 March), ACC lawyer Mir Ahmed Ali Salam confirmed.

Among those sentenced to life imprisonment are also Tanvir’s brother Tushar Ahmed, who holds the position of chief executive officer, T and Brothers Director Taslim Hasan, Max Spinning Mills owner Mir Zakaria, Paragon Group Managing Director Saiful Islam Raja, Nakshi Knit managing directors Abdul Malek, Abdul Motin, and Taslim Hasan.

Eight other who were handed different terms in the same case are – Saval Hemayetpur’s Tantuljhora Union Parishad (UP) Chairman Md Jamal Uddin Sarkar, Sonali Bank Senior Executive Officer (Dhanmondi Branch) Meherunnesa Merry, Sonali Bank (head office) former general managers Nani Gopal Nath and Mir Mohidur Rahman, former managing director Humayun Kabir, Deputy Managing Director (DMD) Mainul Haque, Deputy General Manager (DGM) Safi Uddin, and AGM Md Kamrul Hossain Khan.

UP Chairman Jamal Uddin has been sentenced to five years in prison, while the others have received 10-year prison terms each.

Currently, Jamal Uddin and Altaf Hossain are out on bail. Saiful Islam, Abdul Matin, Humayun Kabir, Nani Gopal Nath, Taslim, Saiful Hasan, Meherunnesa, and Zakaria are still fugitives.

Meanwhile, Tanvir, Tushar, Jasmine, and the remaining eight accused are in custody.

Tanvir and Jasmine are accused of embezzling Tk16.5 crore after taking a loan of Tk525.62 crore in the name of a non-existent Max Spinning Mills.

They were accused of embezzling the money between 18 September 2011 and 30 April 2012 by opening fake LCs (Letters of Credit) in the name of 11 Hallmark Group companies to pay for imported goods.

On 4 October 2012, Nazmuchchadat, assistant director at the Anti-Corruption Commission Head Office, filed a case with Ramna Police Station for embezzling Tk135,44,9,484 from the Hotel Sheraton branch of Sonali Bank.

Tushar was arrested on 8 October 2012 in this case.

Following the investigation, on 7 October 2013, the investigating officer filed a charge sheet against the 17 accused in 11 cases. These 11 cases were transferred to Special Judge’s Court-1 in Dhaka for trial.

Later, on 17 February and 27 March 2016, the trial court framed charges against the accused.

business Following today’s verdict on one of those cases, the remaining cases are pending trial.
​

 

[Saif]

NRBC branch covered up capital flight

Export proceeds worth at least $3.45 million (Tk 34.41 crore) were not repatriated by six customers of NRB Commercial Bank’s Uttara branch, and the bank concealed the trail of the capital flight, according to the bank’s internal audit and case documents.

www.thedailystar.net

Capital flight covered up​

NRB Commercial (NRBC) Bank has often made headlines for alleged money laundering, loan irregularities, over-expenditure and recruitment anomalies. In 2017, Bangladesh Bank had to intervene to dissolve the bank's board and remove its managing director Dewan Mujibur Rahman over a loan scandal involving Tk 700 crore. The then chairman Farasath Ali had to resign from the board. Both Mujibur and Farasath were banned from bank directorship for two years by the BB, and the board was subsequently restructured. The new board is headed by a chairman against whom allegations of irregularities were already rife, and the bank continues to be dogged by anomalies. A six-month investigation by The Daily Star based on hundreds of pages of documents reveals numerous irregularities and even gun toting inside the bank.

The second installment of this four-part series tells the story of how the bank's Uttara branch sought to hide the trail of capital flight in the name of RMG export.

Export proceeds worth at least $3.45 million (Tk 34.41 crore) were not repatriated by six customers of NRB Commercial Bank's Uttara branch, and the bank concealed the trail of the capital flight, according to the bank's internal audit and case documents.

Additionally, five of these companies failed to make any exports at all against LCs worth $8.27 million (Tk 90 crore), leaving the bank grappling with dollars going out and none coming back in.
The amount was later turned into forced loans by the branch over the last four years, according to the bank's internal audit dated August 19, 2021.

Meeting minutes show that these forced loans were then converted into general loans to be rescheduled again and again, thereby covering up the tracks.

The companies, one of which is linked to Adnan Imam, the chairman of the bank's executive committee, collected bills against the orders without submitting shipping documents, while the money from exports never came.

"It has been observed quite a few times that the branch made payments of their back-to-back LC bills by creating Foreign Documentary Bills Purchase loan accounts, whereas these bills should have been settled through relevant export proceeds," says the audit report obtained by The Daily Star.

On July 11 last year, the Anti-Corruption Commission (ACC) sued 11 officials of the bank over swindling Tk 78.6 crore from the bank and laundering Tk 5.98 crore using a sweater factory called Ixora Apparels, one of the six companies accused of not repatriating export proceeds.

Asked about the overall condition of NRBC, Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque said there have been multiple investigations into the bank and that actions are taken when required.

ADNAN'S LINK TO IXORA

Company registration documents show the company is linked to Adnan Imam, who along with current NRBC Chairman Tamal Parvez was previously investigated and removed from the bank's board over alleged money laundering through disguised loans.

Both have denied the money laundering claims, and said the allegations by "a vested group were false and motivated".

Adnan also denied having any link with Ixora.

According to the ACC investigation, Ixora Apparels exported 12 consignments of garments to the UK worth Tk 5.98 crore in 2018-2020, but did not remit the earnings.

The RMG maker is the 19th largest borrower of the bank, shows a memo from the bank's credit risk management division dated December 26, 2023.

The memo also shows that the company has had Tk 119 crore of its loans rescheduled till 2027 and 2028. But even after the regularisation, it has defaulted on instalments, with its overdue outstanding balance standing at about Tk 6 crore.

The company began banking with NRBC in August 2016.

​

"The central bank has done audit after audit on this bank but they do not follow through and there are no judicial outcomes."
— Dr Debapriya Bhattacharya​

When it took its first loan the same year, its owners were one Ruhul Amin Bhuiyan, who owned 40 percent of the share, and one Masud Rana who owned the same amount of the share. Their wives owned 10 percent each. Both Ruhul and Masud are accused in the ACC case.

In 2021, the company changed hands, giving 83 percent ownership to another company called Vibranium.

According to Vibranium's company registration documents, its chairman is Badrul Hasan Patwary. He is the company secretary of a firm called Genex Infosys whose chairman is Adnan Imam.

Vibranium was set up with a paid-up capital of only Tk 10 lakh. Less than two weeks after its incorporation in 2019, Vibranium proceeded to buy a company that owns 78,164 square feet of factory floor and over 800 pieces of capital machinery that produces over 8,000 pieces of clothing per day, according to the company's website.

NRBC renewed the company's composite loan limit at least eight times, thrice after Patwary assumed ownership.

​

"These are depositors' money and I am trying to recover it. I have to nurse these and recover the money anyhow. I take responsibility for these disguised (benami) loans and I will recover them."
— Tamal Parvez​

Patwary has not been charged by the ACC, although its investigation found that the client availed loan one after another but did not return the borrowed money.

"The loan was given even though the client's transactions were not satisfactory," said the ACC probe report.

In June 2023, Bangladesh Bank gave the company an extension up till September 2023 to adjust export proceeds worth $358,273 against the five orders from 2018 to 2020.

Adnan Imam refuted any relations with Ixora.

"Ixora Apparels is a client of NRBC Bank and in no way related to me. I was advised that Ixora went through financial struggles during the pandemic, like many other businesses at that time, and the bank has supported Ixora like any other normal business that required support. I am also advised that Tk 5.97 crore has been fully repatriated to Bangladesh. The ACC has investigated the matter and has found no issue," he said.

MISSING DOLLARS

Polygon Fashion Ltd is another company that failed to repatriate export proceeds worth $8,33,928 or Tk 9.15 crore, according to a 2021 report by the bank's Internal Control and Compliance Division (ICCD).

It also failed to make shipments, and could not settle LCs worth $3.27 million, which were opened to import raw materials for production.

In 2023, Polygon was the number one defaulting borrower of the bank. In November last year, its total outstanding loans stood at Tk 87.7 crore, and the bank had to file claims at the Money Loan Court (Artha Rin Adalat).

The bank's Uttara branch then turned the liability of the Gazipur-based company into 74 forced loans.

Polygon was over-financed although the company was likely incapable of availing such amounts of loan, the ICCD report said, adding, "As a result, the customer could not utilise funds properly and he had the opportunity to divert funds elsewhere and he may have diverted funds."

Before approving a loan, it is required by the bank to collect the customer's credit reports based on the value of the invoice. But during inspection, the audit team found that credit reports of some buyers were not available.

In addition, the team found that the bank did not collect all the original shipping documents as proof of shipments being made.

The ICCD report concluded that the liability has reached such a level that Polygon would not be able to pay it back. The loan was rescheduled in November 2021.

At the time of the ICCD report in 2021, Blessing Knitwear Ltd was the 20th largest borrower of the bank, having a loan of Tk 115.4 crore.

Its export proceeds worth $661,085 (Tk 7.2 crore) were not repatriated to the bank. It also failed to pay the bank an additional $2.33 million (Tk 25 crore) as it did not complete shipments against several other LCs.

"It has been observed that the branch allowed undue facility to the customer against incomplete documents without confirming shipping [sic] or having original authenticated bill of lading," the report said.

These unrepatriated proceeds were turned into forced loans, and the company may have diverted the fund elsewhere, the report noted.

On December 22, 2022, all of the liabilities were rescheduled into general loans.

Inside Knit Composite Ltd did not repatriate $301,191 or Tk 3.3 crore, again forcing the bank to turn the liability into forced loans, which the ICCD found "totally unexpected".

During the factory visit, the ICCD team did not see any stock of goods against the LC.

"It appears that the customer was free to open back-to-back LCs, and to sell those stock of goods on the local market at will," said the report.

In addition, the company did not complete other shipments, leaving the bank with an LC bill of $0.9 million (Tk 9.7 crore) and no incoming dollars.

Minutes of a meeting of the bank's credit risk division from December 24, 2023, show the bank rescheduled the forced loans to improve the bank's "ability to adopt new customers by reducing capital requirement of the bank" and its "market reputation".

5F Apparels did not repatriate $1.2 million (Tk 13.2 crore), said the report, adding that the bank allowed the customer loans against incomplete shipping documents.

The company also left the bank short of $0.7 million (Tk 7.6 crore) because it did not complete shipments.

"The branch negotiated without any shipping documents and original bill of lading, and consequently no shipment was executed against this bill," said the report.

While the bank converted the amount into forced loans, the company may have diverted the fund elsewhere, it said.

Minutes from the 129th board meeting held on November 20, 2021, show 24 forced loans worth Tk 12.23 crore were turned into general loans for a period of 10 years.

Relux Fashion Ltd did not repatriate $85,820 or Tk 94 lakh and the liability was turned into forced loans. In addition, incomplete shipments resulted in an unmet LC obligation of $0.8 million (Tk 9 crore) for the bank.

"Excess finance was allowed exceeding the value of export LCs violating export policy. Therefore, the export proceeds will be inadequate to settle back-to-back obligations," said the ICCD report.

However, NRBC Bank's board meeting minutes from April 12, 2023, show the forced loans were rescheduled for five years by converting them into general loans, wiping out the capital flight from record.

The Daily Star reached out to all these RMG companies via phone calls and emails. Only Polygon responded. Its Managing Director MD Shariful Islam said the company incurred forced loans as a result of the Covid-19 pandemic.

"There were instances where the shipment was made, but the buyers refused to accept it. In another case, the buyer received the shipment but did not pay us. This resulted in forced loans," he said.

NRBC Chairman Tamal Parvez, also known as Parvez Tamal, said when he took over the bank in 2017, he had inherited a legacy of bad clients.

"These are depositors' money and I am trying to recover it. I have to nurse these and recover the money anyhow. I take responsibility for these disguised (benami) loans and I will recover them," he told The Daily Star in an interview for this story.

He said that when he took over, over half the loans that the bank had given out were unsecured overdraft loans – meaning there were no assets attached to them.

Dr Debapriya Bhattacharya, a Distinguished Fellow at the Centre for Policy Dialogue, said it shows that the bank's governance does not look after depositors' interest.

"It must be established whether these kinds of forced loans are within the prudential guidelines," he noted.

The economist also termed it "a failure in governance" on the part of the central bank.

"The central bank has done audit after audit on this bank but it does not follow through and there are no judicial outcomes," he said.​

 

[Saif]

Gun in NRBC Bank boardroom

During the 40th board meeting of NRBC Bank on February 7, 2016, current Chairman Tamal Parvez and Director Adnan Imam entered the boardroom accompanied by a man carrying a large gun. Both Tamal and Adnan were board directors back then.

www.thedailystar.net

Gun in NRBC Bank boardroom​

NRB Commercial (NRBC) Bank has often made headlines for alleged money laundering, loan irregularities, over-expenditure and recruitment anomalies. In 2017, Bangladesh Bank had to intervene to dissolve the bank's board and remove its managing director Dewan Mujibur Rahman over a loan scandal involving Tk 700 crore. The then chairman Farasath Ali had to resign from the board. Both Mujibur and Farasath were banned from bank directorship for two years by the BB, and the board was subsequently restructured. The new board is headed by a chairman against whom allegations of irregularities were already rife, and the bank continues to be dogged by anomalies. A six-month investigation by The Daily Star based on hundreds of pages of documents reveals numerous irregularities and even gun toting inside the bank.
​

---

The first installment of this four-part series deals with alleged loan scandals and gun toting in the boardroom.​

​

---

During the 40th board meeting of NRBC Bank on February 7, 2016, current Chairman Tamal Parvez and Director Adnan Imam entered the boardroom accompanied by a man carrying a large gun. Both Tamal and Adnan were board directors back then.

The gunman stayed in the boardroom until another director, Abu Bakr Chowdhury, asked him to leave, meeting minutes show.

Just at the previous board meeting, on December 20, 2015, Tamal, along with alternate director Abu Mohammad Saidur Rahman, allegedly assaulted the then board chairman Farashat Ali, the meeting minutes say.

At that point, the board was conducting an investigation into alleged money laundering from the bank amounting to Tk 64 crore and attempted money laundering worth Tk 165 crore by some of the board members.

Tamal Parvez entering the NRBC Bank boardroom to attend a board meeting accompanied by a gunman in 2016. Photo: Collected

The allegations involved three of their directors -- Tamal, Adnan, and Rafiqul Islam Mia Arzoo -- and sponsor shareholder AM Tushar Iqbal Rahman. There were 18 people on the board.

The board was also investigating alternate directors Saidur Rahman and AKM Mostafizur Rahman. Tushar is also Saidur Rahman's son.

Of these individuals, five currently serve on the board.

Over the last six months, The Daily Star has gone through hundreds of pages of the bank's meeting minutes, internal enquiry reports, bank statements and Supreme Court documents that reveal how these six, along with several others, formed an alliance to take fictitious loans in the name of companies tied to themselves or their friends and families, as well as for companies where they have business interests.

All six individuals named here have denied all the allegations, and said they were being framed as part of a conspiracy.

GUN TOTING

Displeased with the bank's investigation into the alleged scams, Tamal and Adnan brought the gun "to terrorise the board officials causing life threat," state the minutes of the 48th board meeting held on December 7, 2016.

"The purpose of violence and [brandishing] illegal heavy arms was to establish supremacy over the board to take and hide disguised/benami loans, disguised/benami contracts and other misdeeds of the accused directors and their associates," the minutes add.

Tamal denied all the allegations against him and defended bringing a gunman, saying the person was his licensed bodyguard.

Within two years of the gun-toting episode, Tamal was unanimously elected chairman of the bank's board on December 10, 2017, and has remained so since. At the same time, the board picked Rafiqul as the vice-chairman and Adnan as new chairman of the executive committee.

As per the 56th board meeting minutes, the findings by the internal enquiry committee against them were "resolved, set aside and cancelled" that year.

According to NRBC's website and Russian corporate registry, Tamal, originally from Barishal, was an expatriate having engagements in IT and real estate business and logistic consultancy in Russia.

Since his selection as the board chairman, Tamal's tenure has been peppered with allegations of disguised loans, illegal profiteering, violations of banking codes, and financial misappropriations, show the documents obtained by The Daily Star.
​

"The accusations made were false, concocted and distributed with an ulterior motive to defame me personally and to mislead the authorities."
— Adnan Imam​

For example, Lanta Services -- the same company that the previous board had investigated for allegedly being used by Tamal to take disguised loans -- was given credits worth crores of taka since he took the bank's helm.

Tamal is one of the founding sponsor directors of the bank established in 2013. In 2016, the bank's sponsor directors' capital was Tk 520 crore.

Of them, Tamal had a share capital worth Tk 20 crore, Tushar Tk 20 crore, Feroz Tk 20 crore, Rafikul Tk 20 crore and Adnan Tk 10 crore, according to meeting minutes.

His personal bodyguard escorts him to the boardroom. Photo: Collected

WHO TOOK WHAT?

In February 2016, the bank set up a committee and launched an investigation into a number of allegations, including the alleged money laundering by five directors and several others.

According to the 48th board meeting minutes, Tamal, Adnan, Rafiqul, Tushar, and Firoz took Tk 64 crore in disguised loans in the names of Pubali Construction, NES Trading, an NGO called Voluntary Organisation for Social Development (VOSD), Lanta Services and Ornita Agro. The loans were taken without the disclosure of the directors' affiliations with these companies.

In banking terms, these are called "related party loans", and according to Bangladesh Bank rules, in case of such loans, directors of borrower banks must declare their ties with the borrowing companies.

Of the Tk 64 crore, Adnan alone took two "disguised loans" of Tk 28 crore in the names of NES Trading (Tk 19 crore) and Pubali Construction (Tk 9 crore). He took another Tk 3 crore along with Mostafizur, Tushar and Firoz for a company called Ornita Agro, show the minutes of the 46th and 48th board meeting.

Ornita Agro was owned by Adnan and Mostafizur. After obtaining the Tk 3 crore loan from the NRBC, Ornita transferred an amount of Tk 3 crore to the bank account of IPE Capital in two tranches within two days, according to the bank's own enquiry report.

IPE Capital is Adnan Imam's family business where he is a director, their own stock exchange documents show.

NRBC's website lists Adnan as a UK citizen and a Commercially Important Person (CIP), having various businesses, including in real estate and private equity in London and Dhaka.

NES Trading is also owned by Adnan and his business partner and brother-in-law based in London, the bank's internal enquiry report said.

According to Adnan's own admission before the bank's enquiry committee, the owner of Pubali Construction is his employee, and that the Tk 9 crore loan for Pubali Construction was taken against the land of Adnan's father-in-law.

Tamal is also linked to Pubali Construction. He transferred at least Tk 87 lakh in two tranches to the account of Pubali Construction before the enquiry began, states the enquiry report.

On August 5, 2016, the then governor of Bangladesh Bank Fazle Kabir sent a letter to the then finance minister Abul Maal Abdul Muhith. The letter, obtained by The Daily Star, says that the BB had conducted a covert investigation and found that Adnan took disguised or "benami" loans worth Tk 3 crore using the name of Ornita Agro Industries.

Board members "observed with grave concern" that Rafikul, being the audit committee chairman, failed to prevent Adnan from swindling depositors' money, according to the minutes of 44th and 48th board meetings.

In a clear case of forgery, Adnan also submitted a bill of Tk 1 crore against the actual expenses of Tk 56 lakh for the interior work of the bank's Banani branch through his company, Adrita Trading, the 48th board meeting minutes recorded, citing board members.

VSDO, the NGO which was given Tk 30 crore loan, was founded by Mostafizur, a current director.

Tamal, the current chairman, took a disguised loan of Tk 3 crore in the name of Lanta Services, according to multiple meeting minutes.

The same day that Lanta was sanctioned the credit facility of Tk 3 crore, Tamal transferred Tk 1 crore to Lanta's account from his own, as lien, in the form of FDR.

Bank insiders say Tamal deposited the sum to facilitate the loan disbursement in favour of Lanta Services.

FROM BOARDROOM TO COURTROOM

Tamal, Adnan and Rafikul were removed from the board in April 2016 over these allegations, and the three took it to court.

A High Court bench led by Justice Md Rezaul Hasan reinstated them, but temporarily confiscated their shares and attached those to the bank. The court also said that they be kept out of board meetings that discussed the investigation against them.

The court made the decision to reinstate them only on the grounds that banking laws do not allow the board to relieve them. "However, this does not debar the bank or its board from taking proper action in accordance with the law."

The court ruled, "The petitioners [the accused directors] appear to have managed to slip through the fences [...] by contriving the path of taking disguised or benami loans."

The HC held that the board's enquiry report "shows the nexus of Adnan Imam with the loan of Pubali Construction and NES trading and his interest in these organisations."

It also said that there is prima facie proof of Tamal and Rafikul's link with Lanta, and there is a "seeable link of Tamal Parvez and his interest in Pubali Construction and NES Trading, and thus provide a basis that establishes on the preponderance of evidence that the petitioners had obtained disguised loans from the respondent bank and that they are the actual persons behind the veils of these two entities."

The gunman stands inside the boardroom with a firearm. Photo: Collected

LOVE FOR LANTA

Three years after these findings by the bank's board and the ruling by the High Court, NRBC gave Lanta Services loans worth Tk 14 crore, according to multiple meeting minutes.

At a meeting on February 19, 2019, the board led by Tamal allowed Lanta a composite credit facility of Tk 4.5 crore.

Meeting minutes show there was no discussion about the fact that Tamal was investigated for being related to Lanta, and that the High Court had instructed the bank to take action against him for taking disguised loans.

The loan limit for Lanta was increased by Tk 2 crore to Tk 6.5 crore within two months. On April 18, 2020, the credit line was further scaled up to Tk 9.5 crore. Three meetings later, Lanta got another Tk 50 lakh in a "stimulus loan". In 2021, Lanta's Tk 9.5 crore loan limit was renewed.

The company was also given three car loans worth Tk 4.28 crore in just two years, documents show.

Since Tamal became the board chairman, Lanta Services' subsidiary company Lanta Fortuna Properties bagged the interior design work of the bank on multiple occasions, including a Tk 87 lakh contract in June 2019.

Both companies have the same managing director, Faisal Bin Alam, a bank client.
​

"He [the gunman] simply escorted me to the boardroom…. I was under threat from the board and I had even sought protection from Rab through a written application."
— Tamal Parvez​

PILFERING PROVIDENT FUND

These two companies were also used for pilfering money from the provident fund of NRBC bank's junior tellers and assistant tellers, the junior most employees, show their bank statements.

The bank does not hire its contractual recruits itself. Instead, it uses a separate company called NRBC Management.

Founded in 2018, NRBC Management was owned by Tamal, Adnan, Rafikul and Mostafizur, among other people, until June 2022, documents show.

In a 2022 report by Bangladesh Bank's Financial Integrity & Customer Services Department, the central bank pointed out that obtaining third-party services from a company owned by the bank's management is a conflict of interest and a violation of the procurement policy.

Bank statements of NRBC Management's Provident Fund, Lanta Services, and NRBC Management show how the money went from the employees' provident fund to the NRBC Management's account, and then into Lanta Services', apparently using the recruitment company's bank account as a way to hide where the money was actually coming from.

There are many such transactions, but in one example, Tk 1 crore was transferred from the provident fund account to the account of NRBC Management on April 26, 2021. The same day, NRBC Management transferred Tk 60 lakh to Lanta Services.

This Tk 1 crore was returned by NRBC Management to the provident fund account nearly one and a half years later in October 2022.

But nowhere in the dozens of pages of bank statements in possession of this newspaper does it show Lanta returning the Tk 60 lakh it had taken from NRBC Management.

THE DENIAL

Tamal denied this, saying any bank statements in possession of The Daily Star are false or falsified.

In an interview at his Motijheel office, Tamal also defended bringing the gunman inside the boardroom, saying it was his licensed firearm and that the whole thing is being blown out of proportion.

"He [the gunman] simply escorted me to the boardroom…. I was under threat from the board and I had even sought protection from Rab through a written application," Tamal said.

However, during its proceedings, the High Court slammed Tamal for bringing the gunman, and said, "No personal gunman or personal bodyguard should be allowed to enter inside the bank."

Tamal also denied facilitating Lanta Services' loans.

"It is entirely possible that someone I personally know will have an account here. I was not the chairman of the bank when the overdraft facility was given, so I had no hand in who got the loans."

Adnan Imam denied having any business interest in Pubali Construction, Ornita Agro and NES Trading.

"The accusations made were false, concocted and distributed with an ulterior motive to defame me personally and to mislead the authorities," he said.

Both Tamal and Adnan said the HC judgement was based on false documents provided by vested quarters.

"The High Court in its judgement referred to the report prepared by the then chairman and his associates to frame me and other current directors of the bank. The reference in the judgement was neither a finding, nor an observation or obiter dictum, rather it was a direct reference to the so-called Comprehensive Enquiry Report. To put simply, the judge only read the allegations against me from the said false report made by the ex-chairman. It was not the judge's opinion," said Adnan.

But the HC verdict said it agreed with the findings of the NRBC bank's enquiry report because "no patent or latent irregularity or illegality or lack of competence has been found" in the entire proceedings of the probe committee.

When referred to the HC judgement, Tamal said, "The Appellate Division overturned the judgement…. This is a legal matter and whoever is in the chair can supply information according to his preference."

However, the Appellate Division did not overturn the HC Division verdict in full; it simply ruled that a portion of the HC judgement that took away his shares be set aside.

Mostafizur Rahman said that VOSD, the NGO he set up, is a non-profit and that the Tk 30 crore loan was taken in accordance with Bangladesh Bank's regulations.

These are "related party" loans, said Ahsan H Mansur, director of Policy Research Institute of Bangladesh.

"They needed to declare their relationships with the borrowing companies when such loans were sanctioned," the economist said.

Tushar Iqbal did not return our calls and text messages requesting his comment.

Saidur Rahman denied assaulting the former board chairman.

"They were pushing to sanction a loan for a company that did not have the credentials for it. Both Tamal and I demanded accountability on how our premiums were spent, and the chairman adjourned the meeting," he said.

Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque said there have been multiple investigations into the NRBC and that actions are taken when required.

"We have not heard of any complaint about the chairman [Tamal] walking in with a gunman. If we had proof, we could have scrutinised the complaint," he said.​

 

[Saif]

How can he stop extortion when he is the one who is responsible for rampant extortion in the transport sector? He was protecting his share of the extortion money while making the comment.

Extortion can’t be stopped, but controlled: Quader

The authorities will monitor traffic congestion-prone 155 areas across the country to ease the travails of travel during the coming Eid-ul-Fitr...

www.newagebd.net

Extortion can’t be stopped, but controlled: Quader​

Congestion-prone areas to be monitored during eid holidays​

Staff Correspondent | Published: 00:32, Mar 22,2024

Obaidul Quader

The authorities will monitor traffic congestion-prone 155 areas across the country to ease the travails of travel during the coming Eid-ul-Fitr holidays.

The decision was taken on Thursday at a preparatory meeting for road travel during the forthcoming Eid.

Road transport and bridges minister Obaidul Quader, while chairing the meeting, said that extortion in the transport sector reached such a bad level that even the prime minister had to talk about it.

‘Extortion is impacting the prices of essentials. Naturally the prime minister can understand it and she was forced to talk severely on the issue,’ he said, adding, ‘extortion cannot be stopped. Maybe it can be controlled.’

The Bangladesh Road Transport Authority held the meeting at its headquarters in the capital in which former shipping minister and Bangladesh Road Transport Worker’s Federation president Shajahan Khan and senior officials of the ministry were also present.

Obaidul urged the authorities concerned to check some traffic congestion prone areas, Hanif Flyover in Dhaka, Gazipur, Chandra, Nabinagar and Bangabandhu Bridge west side among them, to reduce sufferings of Eid travellers.

Decisions were also taken to keep open CNG filing stations for 24 hours seven days before and five days after the Eid day and on the Eid day, stop movement of goods-laden vehicles on highways three days before and after the Eid day and monitor 155 traffic congestion-prone areas during the holiday.

Shajahan Khan said that extortions on the road should be brought at a tolerable level.

Extortion is crippling the transport sector, the former shipping minister added.

Obaidul also said that dilapidated buses on Dhaka roads are a shame for Bangladesh.

‘These buses are shameful for our development, achievement and height,’ he said, adding that in Dhaka city there are many factories of these buses.

He said that he had visited some of these factories to see that these buses were being painted with so low quality materials that they would last only 10 days.

‘I asked the owners’ leaders many times but nothing worked,’ he continued and urged the owners to ensure fitness of buses before the Eid holidays begin.

Fatal road crashes are mainly taking place after the Eid due to lax monitoring, he also observed.

He blamed movement of motorcycles and three-wheelers and reckless driving for fatal road crashes.

‘We do not evaluate the implementation of the decisions taken in these meetings. The effectiveness of these decisions in reality needed to be evaluated,’ he added.​

 

[Saif]

NRBC branch covered up capital flight

Export proceeds worth at least $3.45 million (Tk 34.41 crore) were not repatriated by six customers of NRB Commercial Bank’s Uttara branch, and the bank concealed the trail of the capital flight, according to the bank’s internal audit and case documents.

www.thedailystar.net

NRBC branch covered up capital flight​

NRB Commercial (NRBC) Bank has often made headlines for alleged money laundering, loan irregularities, over-expenditure and recruitment anomalies. In 2017, Bangladesh Bank had to intervene to dissolve the bank's board and remove its managing director Dewan Mujibur Rahman over a loan scandal involving Tk 700 crore. The then chairman Farasath Ali had to resign from the board. Both Mujibur and Farasath were banned from bank directorship for two years by the BB, and the board was subsequently restructured. The new board is headed by a chairman against whom allegations of irregularities were already rife, and the bank continues to be dogged by anomalies. A six-month investigation by The Daily Star based on hundreds of pages of documents reveals numerous irregularities and even gun toting inside the bank.

The second installment of this four-part series tells the story of how the bank's Uttara branch sought to hide the trail of capital flight in the name of RMG export.

Export proceeds worth at least $3.45 million (Tk 34.41 crore) were not repatriated by six customers of NRB Commercial Bank's Uttara branch, and the branch concealed the trail of the capital flight, according to the bank's internal audit and case documents.

Additionally, five of these companies failed to make any exports at all against LCs worth $8.27 million (Tk 90 crore), leaving the bank grappling with dollars going out and none coming back in.

The amount was later turned into forced loans by the branch over the last four years, according to the bank's internal audit report dated August 19, 2021.

Meeting minutes show that these forced loans were then converted into general loans to be rescheduled again and again, thereby covering up the tracks.

These companies, one of which is linked to Adnan Imam, the chairman of the bank's executive committee, collected bills against the orders without submitting shipping documents, while the money from exports never came.

"It has been observed quite a few times that the branch made payments of their back-to-back LC bills by creating Foreign Documentary Bills Purchase loan accounts, whereas these bills should have been settled through relevant export proceeds," says the audit report obtained by The Daily Star.

On July 11 last year, the Anti-Corruption Commission (ACC) sued 11 officials of the bank over swindling Tk 78.6 crore from the bank and laundering Tk 5.97 crore using a sweater factory called Ixora Apparels, one of the six companies accused of not repatriating export proceeds.

Asked about the overall condition of NRBC, Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque said there have been multiple investigations into the bank and that actions are taken when required.

ADNAN'S LINK TO IXORA

Company registration documents show Ixora is linked to Adnan Imam, who along with current NRBC Chairman Tamal Parvez was previously investigated and removed from the bank's board over alleged money laundering through disguised loans.

Both have denied the money laundering allegations, and said the claims by "a vested group were false and motivated".

Adnan also denied having any link with Ixora.

According to the ACC investigation, Ixora Apparels exported 12 consignments of garments to the UK worth Tk 5.97 crore in 2018-2020, but did not remit the earnings.

The RMG maker is the 19th largest borrower of the bank, shows a memo from the bank's credit risk management division dated December 26, 2023.

The memo also shows that the company has had Tk 119 crore of its loans rescheduled till 2027 and 2028. But even after the regularisation, it has defaulted on instalments, with its overdue outstanding balance standing at about Tk 6 crore.

The company began banking with NRBC in August 2016.

When it took its first loan the same year, its owners were one Ruhul Amin Bhuiyan, who owned 40 percent of the share, and one Masud Rana who owned another 40 percent. Their wives owned 10 percent each. Both Ruhul and Masud are accused in the ACC case.

In 2021, the company changed hands, giving 83 percent ownership to another company called Vibranium.

According to Vibranium's company registration documents, its chairman is Badrul Hasan Patwary. He is the company secretary of a firm called Genex Infosys whose chairman is Adnan Imam.

Vibranium was set up with a paid-up capital of only Tk 10 lakh. Less than two weeks after its incorporation in 2019, Vibranium proceeded to buy a company that owns 78,164 square feet of factory floor and over 800 pieces of capital machinery that produces over 8,000 pieces of clothing per day, according to the company's website.

​

"The central bank has done audit after audit on this bank but it does not follow through and there are no judicial outcomes."
— Dr Debapriya Bhattacharya​

NRBC renewed the company's composite loan limit at least eight times, thrice after Patwary assumed ownership.

Patwary has not been charged by the ACC, although its investigation found that the client availed loan one after another but did not return the borrowed money.

"The loan was given even though the client's transactions were not satisfactory," said the ACC probe report.

In June 2023, Bangladesh Bank gave the company an extension up till September 2023 to adjust export proceeds worth $358,273 against the five orders from 2018 to 2020.

Contacted, Adnan Imam said, "Ixora Apparels is a client of NRBC Bank and in no way related to me. I was advised that Ixora went through financial struggles during the pandemic, like many other businesses at that time, and the bank has supported Ixora like any other normal business that required support. I am also advised that Tk 5.97 crore has been fully repatriated to Bangladesh. The ACC has investigated the matter and has found no issue."

MISSING DOLLARS

Polygon Fashion Ltd is another company that failed to repatriate export proceeds worth $8,33,928 or Tk 9.15 crore, according to a 2021 report by the bank's Internal Control and Compliance Division (ICCD).

It also failed to make shipments, and could not settle LCs worth $3.27 million, which were opened to import raw materials for production.

In 2023, Polygon was the number one defaulting borrower of the bank. In November last year, its total outstanding loans stood at Tk 87.7 crore, and the bank had to file claims at the Money Loan Court (Artha Rin Adalat).

The bank's Uttara branch then turned the liability of the Gazipur-based company into 74 forced loans.

Polygon was over-financed although the company was likely incapable of availing such amounts of loan, the ICCD report said, adding, "As a result, the customer could not utilise funds properly and he had the opportunity to divert funds elsewhere and he may have diverted funds."

​

"These are depositors' money and I am trying to recover it. I have to nurse these and recover the money anyhow. I take responsibility for these disguised (benami) loans and I will recover them."
— Tamal Parvez​

Before approving a loan, it is required by the bank to collect the customer's credit reports based on the value of the invoice. But during inspection, the audit team found that credit reports of some buyers were not available.

In addition, the team found that the bank did not collect all the original shipping documents as proof of shipments being made.

The ICCD report concluded that the liability has reached such a level that Polygon would not be able to pay it back. The loan was rescheduled in November 2021.

At the time of the ICCD report in 2021, Blessing Knitwear Ltd was the 20th largest borrower of the bank, having a loan of Tk 115.4 crore.

Its export proceeds worth $661,085 (Tk 7.2 crore) were not repatriated to the bank. It also failed to pay the bank an additional $2.33 million (Tk 25 crore) as it did not complete shipments against several other LCs.

"It has been observed that the branch allowed undue facility to the customer against incomplete documents without confirming shipping [sic] or having original authenticated bill of lading," the report said.

These unrepatriated proceeds were turned into forced loans, and the company may have diverted the fund elsewhere, the report noted.

On December 22, 2022, all of the liabilities were rescheduled into general loans.

Inside Knit Composite Ltd did not repatriate $301,191 or Tk 3.3 crore, again forcing the bank to turn the liability into forced loans, which the ICCD found "totally unexpected".

During the factory visit, the ICCD team did not see any stock of goods against the LC.

"It appears that the customer was free to open back-to-back LCs, and to sell those stock of goods on the local market at will," said the report.

In addition, the company did not complete other shipments, leaving the bank with an LC bill of $0.9 million (Tk 9.7 crore) and no incoming dollars.

Minutes of a meeting of the bank's credit risk division dated December 24, 2023, show the bank rescheduled the forced loans to improve the bank's "ability to adopt new customers by reducing capital requirement of the bank" and its "market reputation".

5F Apparels did not repatriate $1.2 million (Tk 13.2 crore), said the report, adding that the bank allowed the customer loans against incomplete shipping documents.

The company also left the bank short of $0.7 million (Tk 7.6 crore) because it did not complete shipments.

"The branch negotiated without any shipping documents and original bill of lading, and consequently no shipment was executed against this bill," said the report.

While the bank converted the amount into forced loans, the company may have diverted the fund elsewhere, it said.

Minutes of the 129th board meeting held on November 20, 2021, show 24 forced loans worth Tk 12.23 crore were turned into general loans for a period of 10 years.

Relux Fashion Ltd did not repatriate $85,820 or Tk 94 lakh and the liability was turned into forced loans. In addition, incomplete shipments resulted in an unmet LC obligation of $0.8 million (Tk 9 crore) for the bank.

"Excess finance was allowed exceeding the value of export LCs violating export policy. Therefore, the export proceeds will be inadequate to settle back-to-back obligations," said the ICCD report.

However, NRBC Bank's board meeting minutes from April 12, 2023, show the forced loans were rescheduled for five years by converting them into general loans, wiping out the capital flight from record.

The Daily Star reached out to all these RMG companies via phone calls and emails. Only Polygon responded. Its Managing Director MD Shariful Islam said the company incurred forced loans as a result of the Covid-19 pandemic.

"There were instances where the shipments were made, but the buyers refused to accept them. In another case, the buyer received the shipment but did not pay us. This resulted in forced loans," he said.

NRBC Chairman Tamal Parvez, also known as Parvez Tamal, said when he took over the bank in 2017, he inherited a legacy of bad clients.

"These are depositors' money and I am trying to recover it. I have to nurse these and recover the money anyhow. I take responsibility for these disguised (benami) loans and I will recover them," he told The Daily Star in an interview for this story.

He said that when he took over, over half the loans that the bank had given out were unsecured overdraft loans – meaning there were no assets attached to them.

Dr Debapriya Bhattacharya, a Distinguished Fellow at the Centre for Policy Dialogue, said it shows that the bank's governance does not look after depositors' interest.

"It must be established whether these kinds of forced loans are within the prudential guidelines," he noted.

The economist also termed it "a failure in governance" on the part of the central bank.

"The central bank has done audit after audit on this bank but it does not follow through and there are no judicial outcomes," he said.​

 

[Saif]

Drop in graft complaints to ACC raises eyebrows

The Anti-Corruption Commission has recorded a substantial drop in the number of corruption complaints in recent years though global corruption watchdogs have found corruption rising...

www.newagebd.net

Drop in graft complaints to ACC raises eyebrows
Experts blame lack of confidence in ACC
Solamain Salman | Published: 00:18, Mar 24,2024

The Anti-Corruption Commission has recorded a substantial drop in the number of corruption complaints in recent years though global corruption watchdogs have found corruption rising in the country.

The latest report from the Transparency International revealed that corruption increased in Bangladesh with the country sliding two steps down to the 10th position from the bottom among the 180 countries covered by the Corruption Perception Index 2023.

But the data from the ACC’s latest annual report to be made public on Sunday showed that the commission received 15,437 complaints in 2023, compared with 19,338 in 2022, 14,789 in 2021 during the Covid pandemic, 18,489 in 2020, and 21,371 in 2019.

Asked about the decrease in corruption complaints, good governance and anti-graft campaigners said that apparently it is the manifestation of people’s frustration from failing to get a remedy to the menace permeating the society.

‘People are losing confidence in the commission as they cannot see visible action after they filed graft complaints,’ said M. Hafizuddin Khan, a retired civil servant and former adviser to the caretaker government.

Former cabinet secretary Ali Imam Majumder told New Age that the ACC is failing to meet people’s expectation, prompting disinterest to come to the anti-graft body to end their sufferings.

An analysis of the last five years of data finds that the ACC received a total of 88,105 graft allegations between 2019 and 2023, but it took only 4,750 of them into consideration to launch inquiry. But the commission did not launch any inquiry into the rest of the 70,397 graft allegations which cover 94.61 per cent of the total allegations.

The ACC filed a total of 1,868 cases in the past five years.

‘The commission cannot take into consideration all the allegations submitted as most of them fall beyond ACC jurisdiction,’ said its chairman Mohammad Moinuddin Abdullah.

In a household survey on the services sectors, Transparency International Bangladesh in 2022 revealed that 70.9 per cent of people were victims of corruption, with 40.1 per cent having to pay bribes of Tk 6,636 on average to obtain services.

It also found that the law enforcement agencies topped the list of 17 service sectors surveyed as 74.4 per cent people became victims of their corruption. The passport office came in second among corrupt sectors, BRTA came in third, judicial services fourth, health sector fifth, local government institutions sixth, land related services seventh, education eighth, electricity ninth, climate change tenth, agriculture eleventh, insurance twelfth, NGO thirteenth, gas fourteenth, banking fifteenth, and tax and customs sixteenth.

Experts said that as the people filing complaints are not getting their expected remedies, they are becoming frustrated and losing confidence in the commission.

Hafizuddin Khan also said, ‘I think corruption is rather increasing than decreasing. As people coming with complaints do not get remedies their confidence erodes, resulting in the declining number of complaints.’


TIB executive director Iftekharuzzaman said that in the absence of relevant data, it is difficult to assess with certainty the implications of such a decline in the number of complaints from one year to another.

He, however, said that one thing is certain: this decline in the number of complaints to the ACC cannot be treated as evidence of reduced corruption.

‘On the contrary, since it has been noted that quite a large proportion of complaints remain unaddressed every year and complainants are not informed by the ACC about the fate of the complaints, the decline may be a syndrome of people’s perception that it makes no sense to complain,’ said Iftekharuzzaman.

‘To overcome this, the ACC would do well to develop a practice of regularly and systematically communicating the reasons behind complaints being unaddressed,’ he added.

According to the ACC annual report, in 2023, out of 15,437 allegations, 9,262 were submitted to the ACC headquarters, 771 were received from government offices and agencies, 308 from private departments and agencies, 1,080 from newspaper and television reports, 1,439 from divisional and district offices of the ACC, and 462 complaints were received through ACC hotline 106.

Apart from this, the commission also received 2,115 allegations from other sources, including the court, social media platforms like Facebook and emails, according to the latest annual report.

In 2023, the ACC initiated 923 new inquiries along with previous 3,505 pending ones. Of them, 1,206 inquiries were completed and 404 cases were filed and charges sheets were submitted in 363 cases in that year.

Apart from this, 12,958 allegations were sent to the departments and offices concerned for taking necessary measures.

A total of 361 cases were disposed of in 2023 in which the average conviction rate was 62.30 per cent. Currently, a total of 3,553 corruption cases are pending with the courts across the country.​

 

[Saif]

Experts doubt motive behind high number of small projects

A total of 30 projects, each worth less than Tk 50 crore, were brought to the meeting of the executive committee of the Economic Council...

www.newagebd.net

Experts doubt motive behind high number of small projects
Staff Correspondent | Published: 00:27, Mar 29,2024

A total of 30 projects, each worth less than Tk 50 crore, were brought to the meeting of the executive committee of the Economic Council on Thursday for appraisal, as opposed to five to six such projects in the past.

Prime Minister Sheikh Hasina presided over the meeting and was apprised of the overwhelming number of projects that were approved by the planning minister.

The planning minister holds the power to approve a project costing less than Tk 50 crore, while projects with higher costs need approval from ECNEC.

The details of 30 projects submitted to ECNEC during Thursday’s meeting, however, were not revealed.

Experts said not publicly revealing the details of projects might raise questions about whether those were taken to benefit certain groups against the backdrop of unnecessary projects crowding the annual development programme.

In the post-ECNEC briefing, planning minister Major General (retired) Abdus Salam said he did not approve any single of the 30 projects placed in the meeting for appraisal.

The projects were approved during the tenure of immediate past planning minister MA Mannan, he said.

He, however, claimed that there was nothing wrong with approving such projects.

All the projects are necessary, he said.

Answering a question about whether the planning commission placed so many projects for ECNEC appraisal in a single ECNEC meeting in the past, planning ministry secretary Satyajit Karmaker blamed the time gap in holding the ECNEC meeting for the matter.

Before the last general election, the ECNEC meeting was held every week, but now it takes

more than a month, he said, without elaborating on the reasons behind such a time gap.

The planning secretary did not name the projects placed for appraisal in the ECNEC meeting.

A planning ministry official, on condition of anonymity, said the number of projects with a cost of less than Tk 50 crore had never exceeded five in the past.

The ministries and divisions are showing interest in small projects to bypass the scrutiny process of the ECNEC, he noted.

Most of the projects are taken out of political consideration, he said.

The previous ECNEC meeting held on October 30, 2023, was apprised of only five such projects, he said.

Former World Bank Dhaka office chief economist Zahid Hussain said 30 projects was an overwhelming number, which showed growing interest in such projects.

The government should specify the number of such projects against the poor quality of development projects in the ADP, he said.

Transparency International Bangladesh executive director Iftekharuzzaman said the extraordinary number demanded more transparency since their costs involved public money.

Questions may be raised about the motive behind such projects, he said.

The day’s ECNEC meeting approved a total of 11 projects worth Tk 8,425.51 crore.

The projects include the construction of Union Parishad Complex under the third phase across the country at Tk 3,059 crore, the development of rural infrastructures in the Rangpur region at Tk 2,500 crore, procurement of 20 meter-gauge diesel electronic locomotives and 150 meter-gauge passenger carriages with an additional cost of Tk 288.07 crore to Tk 2,157 crore, upgrading the Kashinathpur-Dashuria-Natore-Rajshahi-Nababganj-Kansat-Sonamasjid-Baliadighi Border national highway at Tk 481.89 crore, development of infrastructure for enhancing the capacity of the government fisheries farms and boosting production at Tk 371.32 crore, and improvement of Fish Landing Centre of Bangladesh Fisheries Development Corporation in Cox’s Bazar at Tk 232.83 crore.

The planning commission officials said the PM directed keeping restrooms and adequate booths while constructing the Bangladesh Chancery Complex and Residential Building in Cairo, Egypt, at Tk 166 crore.

The PM also directed necessary steps to prevent river erosion in Kurigram while implementing development projects there and asked for the completion of union parishad complexes without any delay, according to the planning commission secretary.

Directives were also given by the PM for effective steps to avail maximum benefits and facilities after the country graduates from the bloc of Least Developed Countries in 2026.

The PM also ordered preparation strategies to face the challenges in the post-LDC graduation period.​

 

[Saif]

Era of complacency must come to an end

Taxpayer funds, earmarked for the advancement of knowledge and the betterment of society, must not be squandered on corrupt practices.

www.thedailystar.net

Corruption in public universities

Era of complacency must come to an end​

Chittagong University campus. File photo

Public universities in Bangladesh symbolise the collective ambition for intellectual growth and societal betterment. However, recent revelations have shaken this perception, laying bare a troubling reality of systemic corruption and irregularities which taint the integrity of these institutions. Despite being entrusted with the mission of nurturing minds and propelling research, certain university administrations, particularly the vice-chancellors, stray from their path. Many have become ensnared in a labyrinth of political intrigue and financial impropriety.

Those who have breached public trust must be held accountable for their actions. Only through steadfast commitment to the principles of integrity and fairness can we aspire to revive the noble ideals upon which our universities were established. The era of complacency must come to an end; the time for decisive action is upon us.

Most recently, Chittagong University finds itself engulfed in a morass of unjust and irregular activities, prompting a year-long protest by the teachers' association, calling for the resignation of both the vice-chancellor and pro vice-chancellor. The tenure of Vice-Chancellor Dr Shireen Akhter was fraught with a series of controversial and irregular appointments, casting significant doubt upon the integrity of the selection process. The now-former vice-chancellor oversaw at least 172 recruitments without adhering to mandatory advertising protocols or considering the needs of specific departments. Under her leadership, CU seemed to devolve into a mere job market, where appointments were handed out with alarming frequency and little regard for meritocracy. The institution, once revered as a beacon of learning, appeared to be reduced to a mere pawn in a game of patronage and self-interest.

The media landscape bore witness to this spectacle, with reports and exposés documenting the commodification of positions within the university hierarchy. For the past four years, news outlets have diligently chronicled the exploitation of the institution for personal gain, capturing the narrative through compelling audio-visual representations.

In protest against numerous transgressions, the Chittagong University Teachers' Association (CUTA) has persistently demonstrated for the past one year, calling for the resignation of both the vice-chancellor and the pro vice-chancellor. They organised a month-long exhibition showcasing reports of corruption and irregularities published in various newspapers. Eventually, a new vice-chancellor was appointed and the implicated vice-chancellor was removed from office. While the appointment of a new vice-chancellor and a new pro vice-chancellor represent a positive step forward, these remain insufficient in addressing the deep-rooted systemic issues plaguing the institution.

Meanwhile, the recent legal steps taken in response to allegations of corruption at another public university are commendable. At Rajshahi University of Engineering and Technology (RUET), the appointment process for 17 officers and employees faced significant scrutiny. Acknowledging the gravity of these allegations, the Anti-Corruption Commission (ACC) approved a case against both the former vice-chancellor and acting registrar of RUET, signalling a resolute stance against malpractice within a public educational institution.

Taxpayer funds, earmarked for the advancement of knowledge and the betterment of society, must not be squandered on corrupt practices. It is intolerable that educational institutions operate with impunity, shielded from consequences for their malfeasance. To rekindle faith in our education system, authorities must ensure that perpetrators of corruption face the full force of legal repercussions. Urgent and impartial investigation into the alleged misdeeds of past administrations are also crucial. Justice must be served clearly, with those implicated in corruption held accountable regardless of their status or influence.

Anything short of this risks further eroding of public trust in our educational institutions and the rule of law itself.
​

---

Dr Ala Uddin is professor of anthropology at Chittagong University. ​

 

[Saif]

Land minister calls for joint effort to end corruption in land service

Land Minister Narayon Chandra Chanda has called for working together to prevent corruption in land service by building a social movement against corruption and taking coordinated initiatives. "We are working by adopting a zero-tolerance policy against corruption under the leadership of the prime m

thefinancialexpress.com.bd

Land minister calls for joint effort to end corruption in land service​

FE ONLINE REPORT

Published :​

Mar 31, 2024 20:45

Updated :​

Mar 31, 2024 20:45

Land Minister Narayon Chandra Chanda has called for working together to prevent corruption in land service by building a social movement against corruption and taking coordinated initiatives.

"We are working by adopting a zero-tolerance policy against corruption under the leadership of the prime minister. Corruption will be rooted out from society as well as the state by taking coordinated initiatives with the people," said the minister.

The minister said this while addressing as the chief guest at a view exchange meeting with stakeholders aimed at establishing good governance in land service at Gopalganj Zila Parishad auditorium on Sunday.

Land Secretary Md Khalilur Rahman, chairman of land reform board Md Abdus Sabur Mondal, and Director-General of Land Record and Survey Department Anis Mahmud, among others, were present as special guests.

Speaking at the event, the land minister also said, "We have taken initiatives to include land-related information in the school curriculum so that citizens can get some idea about land management from school. You will directly tell the concerned land officer about any problem related to your land."

The minister informed the audience that 32 Upazila/Circle Land Offices and 64 Union Land Offices of the country along with the Tungipara Upazila Land Office of Gopalganj district and Patgati and Kushali Union Land Office have been brought under the 180-day programme of the Ministry of Land and the first district-level view exchange meeting has started from Gopalganj.

The minister hoped that the land offices of Gopalganj, which were selected for the 180-day programme, would set a unique example in land service.

In the meeting, the land secretary made a visual presentation on the modernisation of the land system and the ministry's 180-day plan.

Officials of the ministry also made visual presentations on the implementation of the integrity strategy, grievance redressal, Right to Information Act, and Citizen Charter.​

 

[Saif]

If this is not corruption, what is?

Take action against those overpricing products in Matarbari project

www.thedailystar.net

If this is not corruption, what is?

Take action against those overpricing products at Matarbari power plant
VISUAL: STAR

It is absurd that the state-run Coal Power Generation Company Bangladesh Limited (CPGCBL), which is constructing the Matarbari power plant in Cox's Bazar, has imported two pipe cutters for Tk 93 lakh. While inspecting its shipment, custom officials have also found the price of two German-made hammers being shown as Tk 1.82 lakh. However, on the German company's website, the same items were discovered to be priced at Tk 1,668 (for each hammer) and Tk 7,232 (for each pipe cutter) respectively. This means that the CPGCBL has shown an inflated price of 55 times more for the hammers and 642 times more for the pipe cutters.

Customs officials have said that these were not the only two items whose prices were inflated. In fact, all 19 items in the same shipment had been imported at absurdly high prices. Documents from the National Board of Revenue (NBR) show that the import cost of these products has been shown as five to 18,545 times higher than the value recorded in NBR's export-import database. According to the physical examination report by the customs authorities, the price of the pipe wrench that came in the shipment is 1,053 times more than the database value, the monkey pliers 912 times more, the screwdriver 833 times more, and so on.

Despite this gross anomaly, the Matarbari Power Plant project director claimed that the prices were "normal" as they were tailor-made upon special orders. However, import documents show that the tools would not be directly used in the power plant, and are freely importable as they are used in all types of construction and routine maintenance work. Moreover, customs officials confirmed that the CPGCBL did not provide them with any special order. Additionally, NBR records show that CPGCBL had gotten away with importing various goods at inflated prices for the project before.

The claim of procuring hand tools like pipe cutters, hammers and screwdrivers by special orders is ridiculous. As experts have said, this is most likely a case of large-scale corruption that the authorities must urgently investigate. Customs sources say that multiple consignments of other agencies containing such products were also cleared in Chattogram and Mongla from October 16 to January 15. At a time when the country's economy is going through a severe crisis, it is totally unacceptable that such corruption is being allowed to pile on the sufferings of citizens who have to bear these additional expenses. We urge the authorities to take stern action to stop the culture of price inflation in public procurement.​

 

[Saif]

He is one of the most corrupt businessmen who has been accused of taking massive amount of money from Islami Bank illegally.

Summit Chairman Aziz Khan only Bangladeshi in Forbes billionaire list

Forbes has released its 2024 World's Billionaires List, featuring 2,781 billionaires from 78 countries, showcasing the global spread and diversity of immense wealth. Among the entries is Muhammed Aziz Khan, Chairman of Summit Group, marking him as Bangladesh's first billionaire to be included in...

www.thedailystar.net

Summit Chairman Aziz Khan only Bangladeshi in Forbes billionaire list

Forbes has released its 2024 World's Billionaires List, featuring 2,781 billionaires from 78 countries, showcasing the global spread and diversity of immense wealth. Among the entries is Muhammed Aziz Khan, Chairman of Summit Group, marking him as Bangladesh's first billionaire to be included in this compilation.

The list, which ranges from fortunes of $1 billion to Bernard Arnault's $233 billion empire, highlights the luxury conglomerate LVMH's record year. The United States leads with 813 billionaires, including Elon Musk with an estimated worth of $195 billion. Following closely are China, including Hong Kong, with 473 billionaires, and India, with 200. The Asia-Pacific region boasts the highest number of billionaires, totalling 1,000. The Americas and Europe follow.

Muhammed Aziz Khan, now a Singapore permanent resident, was earlier ranked as the 41st richest man in Singapore, according to Forbes.

In 2018, when Khan was first listed in Forbes Singapore's list of billionaires, his net worth was $910 million. Currently, his real-time net worth, according to Forbes, stands at $1.1 billion, which is numbered 2579th highest in the world at the time of writing.

In 2019, Khan sold a 22% stake in Summit Power International to Japan's JERA for $330 million, which valued the company at $1.5 billion, states the listing by Forbes.

Summit Group is a top private sector conglomerate of Bangladesh and has interests in power, ports, fibre optics, real estate and liquefied natural gas.​

 

[Saif]

Fighting corruption or feeding it?

Once a little boy wanted to have his own cricket bat. But he did not have any money to buy it.

www.thedailystar.net

Fighting corruption or feeding it?

Once a little boy wanted to have his own cricket bat. But he did not have any money to buy it. He prayed to God for weeks and nothing happened. So, he decided to write a letter to God asking for Tk 500.

The postman was so amused that he decided to send it to the President's office. Finding it cute, the President sent him Tk 300. Thrilled, the boy wrote a thank you note to God where he complained, "God, the only problem was it came through the President's office where the corrupt donkeys ate Tk 200!"

In our country, we agree or disagree on global statistics as long as it suits our purpose. According to the Corruption Perceptions Index (CPI) 2023, Bangladesh ranks 149th among 180 countries.

Over the last few decades, the CPI score of Bangladesh varied from a low of 4 out of 100 in 2001 to a high of 28 in 2017, with 100 indicating a very clean public sector. In the face of such dire statistics, some justify their dubious acts by claiming corruption and development go hand in hand.

The fight against corruption hinges on understanding the gap between perception and reality. While public perception of corruption can be a powerful indicator, it does not always reflect its true extent. Barriers in uncovering hidden practices and biases can skew perceptions.

However, a widespread belief in corruption can itself be damaging, hindering investment and trust in institutions. Addressing the actual problem and the public perception is crucial in creating a truly transparent society. From my experience of dealing with international investors, Bangladesh is not the most preferred destination of investment despite its potentials for growth and economic success.

Corruption has always been a critical obstacle in exploiting our country's vast potentials. Our Prime Minister has repeatedly warned her officials against it but little has been achieved. In recent times, ludicrous stories of corruption of politicians and bureaucrats are circulating in the media. While some perceive them as baseless or a fabrication to avenge past enmity, others see them as just the tip of the iceberg.

Nevertheless, the general public soaks them up like a little boy reading a thriller. What is thought-provoking is whether the offenders care at all about the media reports, or is corruption a social taboo anymore?

Corruption seems to have spread its tentacles far and wide in our society, sparing none, be it politicians, bureaucrats, businesspeople and ordinary wage-earners. Even our legal system is not immune. It is frustrating to live in a society which tolerates corruption.

At times, it seems, the bigger the corruption, the less likelihood of it having any consequences. People are even starting to joke that it is pointless to steal small amounts. Corruption stifles progress – a country cannot thrive when politics is more lucrative than business.

Although corporate and national politics operate on different scales, they both involve power struggles and alliances. National politics concerns broader issues and public accountability, while corporate politics focuses on company profits and internal dynamics. While both require communication and strategy, the processes differ vastly. National politics involve elections and public debate, while corporate maneuverings occur through committees and informal power structures.

A multi-faceted approach is needed to root out corruption in Bangladesh. Strengthening institutions like an independent judiciary and well-equipped independent anti-corruption agencies can deter offenders. Public awareness and protecting whistleblowers can effectively empower citizens to raise their voice against corruption.

Technology such as e-governance and open data can increase transparency. Addressing root causes like bureaucratic complexities and lack of economic opportunities can reduce incentives for corruption. The crux of it lies in the intent of the people in power.

The fight against corruption demands action, not just words. Let us all, citizens and leaders alike, rise to the challenge and build a nation worthy of its potential.
The author is founder and managing director of BuildCon Consultancies Ltd.​

 

[Saif]

BTRC to open fresh audits into GP, Robi

The decision to carry out the audits comes although the claims of the first audits into the operators haven’t been settled yet.

www.thedailystar.net

BTRC to open fresh audits into GP, Robi

The telecom regulator has decided to carry out information system audits into Grameenphone and Robi Axiata in the years since 2015 and form committees to start the process of appointing auditors.

The Bangladesh Telecommunication Regulatory Commission (BTRC), at a meeting last month, approved the setting up of two committees in order to hire the audit firms.

Two tender evaluation committees for the audit process will also be formed, according to the meeting documents.

The information system audit aims to ensure that the equipment and processes within GP and Robi adhere to the guidelines of the commission. It makes sure compliance with rules and regulations, including the verification of revenue collected by the companies, so that the government receives its due share.

The decision to carry out the audits comes although the claims of the first audits into the operators haven't been settled yet.

The telecom regulator ran separate audits into the two operators from their inception to December 2014 and claimed Tk 12,579 crore from GP and Tk 867 crore from Robi.

The claims include the amounts for unpaid annual spectrum fees, value-added tax, and revenue sharing. However, both operators disputed the sum and claimed that they did not evade any taxes.

The dispute triggered a legal battle between the operators and the BTRC, with the companies filing cases in 2019.

Based on the audit of GP from 1997 to 2014, the BTRC sent a demand notice in April 2019, asking it to clear the payments.

Later, GP filed the case before the district court against the claim. The Supreme Court in November of that year ordered the operator to give Tk 2,000 crore in three months to the commission.

Afterward, the appellate division directed the largest mobile phone operator of the country to deposit Tk 1,000 crore by February 2020 and another Tk 1,000 crore by May 2020. GP complied.

Of the Tk 12,579 crore, the operator hasn't yet cleared more than Tk 6,100 crore slapped as a late fee.

Additionally, it paid over Tk 2,392 crore out of Tk 4,085 crore owed to the National Board of Revenue.

GP did not respond to The Daily Star's request for comments yesterday regarding the BTRC's new audit process.

"We want an amicable solution on the rest of the dues claimed in the audit," Yasir Azman, chief executive officer of GP, told The Daily Star recently.

Out of Tk 867 crore, Robi, the second-largest operator of Bangladesh, paid Tk 138 crore in five instalments by May 2020 to comply with the order of the High Court Division.

According to Robi's annual report for 2022, a substantial part of the BTRC's claim includes the VAT on spectrum fees and VAT rebate/credit cancellation, which are either part of other ongoing litigations or in respect of which the BTRC has no jurisdiction to claim relevant amounts.

"We filed a general petition with the court five years ago, challenging the outcomes of the previous audit. The telecom regulator is yet to respond to the petition. Therefore, we haven't seen any progress on the sub judice matter," Shahed Alam, chief corporate and regulatory officer at Robi Axiata, told The Daily Star.

"We hope the regulator will take necessary steps to resolve pending issues of the previous audit."

The regulator also conducted audits into Banglalink from 1996 to 2019 and asked the operator to pay more than Tk 820 crore last year.

Of the figure, Tk 390 crore has been sought as VAT, tax and fees, and outstanding dues related to revenue-sharing, handset royalty, access frequency and microwave frequency payments, and the licence fees as principal amount. The rest, or Tk 430 crore, was claimed as late fees.

The operator has deposited Tk 335 crore of the principal amount as of now and will pay the rest of the principal amount of Tk 390 crore in instalments, according to an official of the operator.

Banglalink is trying to mutually resolve the BTRC's audit outcome, so it hasn't filed any case.

An official of the BTRC told The Daily Star that the commission has sent a letter to the government on waiving the late fees.

The BTRC also took the initiative to audit other state-owned and private companies in the telecommunication ecosystem.

It has recently demanded payments from state-run Teletalk Bangladesh and Bangladesh Telecommunications Company Limited, asking them to clear dues amounting to a staggering Tk 3,000 crore collectively.​