[🇧🇩] Corruption Watch

[Saif]

Two cops withdrawn over bribery

The officer-in-charge and a sub-inspector of Adabor Police Station were withdrawn over the incident of taking bribe from an accused in a case filed after August 5.

www.thedailystar.net

Two cops withdrawn over bribery

The officer-in-charge and a sub-inspector of Adabor Police Station were withdrawn over the incident of taking bribe from an accused in a case filed after August 5.

SI Shaheen Parvez was closed and attached to the office of Deputy Commissioner of Tejgaon Division Police on Sunday night as he allegedly took money from an accused.

The SI was tasked with the investigation of a murder case filed with the police station after August 5, police officials said.

Meanwhile, Talebur Rahman, deputy commissioner (media) of DMP, said OC Imtiaz Parvez has been withdrawn and attached to the DMP headquarters.

Yesterday, the DMP Commissioner SM Sazzat Ali said he has taken action against a police member for taking money from an accused.

The city police chief said the complainants of the cases filed after August 5 made several hundred accused and are now taking extortion from the accused, promising to drop the names.

"Not all of my force members are good. I got reports that my force members were taking money from the accused," he said, adding that the complainants who are taking money from the accused will be sued with extortion charges.

Talking to The Daily Star, OC Imtiaz said the authorities transferred him as his SI was closed earlier for the offence.

Shaheen could not be contacted as his phone was found switched off.​

 

[Saif]

Mohammad Abdul Momen new chairman of ACC

The government on Tuesday appointed senior secretary of the Public Security division of home ministry Mohammad Abdul Momen as new chairman of the Anti-Corruption Commission...

www.newagebd.net

Mohammad Abdul Momen new chairman of ACC
Staff Correspondent 10 December, 2024, 17:47

Mohammad Abdul Momen | UNB photo

The government on Tuesday appointed senior secretary of the Public Security division of home ministry Mohammad Abdul Momen as new chairman of the Anti-Corruption Commission.

The government also appointed retired District and Sessions Judge Mia Mohammad Ali Akbar Azizi and Brigadier General (retd) Hafiz Ahsan Farid as new commissioners of the ACC, according to a gazette notification issued by the Cabinet Division.

It said that Momen, as ACC chairman, will enjoy salary, allowances, and status given to an Appellate Division judge, while the two commissioners, as commissioners, will enjoy salary, allowances, and status given to a High Court Division judge.

Momen was working on a contract basis in the public security division of the Ministry of Home Affairs, but he resigned on December 8 from that post to join as ACC chairman, said ministry officials.

The Public Administration ministry also on Tuesday issued a separate official order cancelling Momen’s contractual appointment.

Momen was sent on compulsory retirement in 2013 by the then Awami League government while he was a joint secretary.

After the AL government fell on August 5 amid a student-led mass uprising, he was appointed as secretary of the Public Security Division of the home ministry on contractual basis. Later, he was promoted to senior secretary.

On October 29, former ACC chairman Mohammad Moinuddin Abdullah and two commissioners, Md Zahurul Haque (Investigation) and Mosammat Asia Khatoon (Inquiry), resigned from their positions.​

 

[Saif]

550 individuals’ Tk 15,000cr frozen for investigation

The Bangladesh Financial Intelligence Unit has frozen bank accounts of nearly 550 individuals and entities, holding around Tk 15,000 crore, over allegations of accumulating substantial assets through unethical means.

www.newagebd.net

550 individuals’ Tk 15,000cr frozen for investigation
Mostafizur Rahman 15 December, 2024, 00:34

The Bangladesh Financial Intelligence Unit has frozen bank accounts of nearly 550 individuals and entities, holding around Tk 15,000 crore, over allegations of accumulating substantial assets through unethical means.

BFIU officials said that the anti-money laundering agency started to freeze their accounts after the fall of the Awami League government on August 5.

The frozen accounts belong to individuals including political leaders, businesspeople, and influential public figures tied to the Awami League-led government, they said.

The investigations focus on financial irregularities, including money laundering, loan fraud, and asset misappropriation.

Key figures include Sheikh Hasina’s family members such as her son Sajeeb Wazed Joy, daughter Saima Wazed Putul, and nephew Radwan Mujib Siddiq Bobby.

Accounts linked to her cousins Abul Hasanat Abdullah, Sheikh Salahuddin Jewel, Sheikh Fazlul Karim Selim, and Sheikh Helal Uddin, along with their respective family members have also been frozen.

The list extends to organisations like the Awami League’s research cell, the Centre for Research and Information, and its CRI-Young Bangla project.

Several former ministers, MPs, and advisers close to Sheikh Hasina are under investigation.

These include former Energy Adviser Tawfiq-e-Elahi Chowdhury, Security Adviser Major General (retired) Tarique Ahmed Siddique, and NTMC’s former director general Major General (dismissed) Ziaul Ahsan. Accounts linked to former Bangladesh parliament speaker Shirin Sharmin Chaudhury and her family are also affected.

Bankers said that given the scale and complexity of these allegations, the path toward effective accountability and recovery of misap propriated funds remained challenging.

Prominent ministers in the previous government, such as Obaidul Quader, AHM Mustafa Kamal, Mohammad Hasan Mahmud, Tipu Munshi, Asaduzzaman Khan, Zunaid Ahmed Palak, and Saifuzzaman Chowdhury Javed, as well as their family members and related companies, are included in the investigation.

The crackdown extends to major business conglomerates like S Alam, Beximco, Summit, Bashundhara, Orion and others.

The S Alam Group, led by Saiful Alam Masud and his associates, is a central focus.

Salman F Rahman of Beximco, along with his son and daughter-in-law, is also under investigation.

The list also included Summit Group’s Mohammad Aziz Khan, Muhammad Faruk Khan, and 11 members of their family; Bashundhara Group chairman Ahmed Akbar Sobhan and 8 of his family members; Orion Group’s Obaidul Karim and 6 members of his family; Diamond World’s Dilip Kumar Agarwala and his wife; Nabil Group managing director Aminul Islam and 6 of his family members; Nasa Group’s Nazrul Islam Mazumder and his wife; the late Zainul Haque Sikder’s family, comprising 14 members; and Chowdhury Nafiz Sarafat, his wife Anjuman Ara Sahid and their son Rahib Safwan Sarafat Chowdhury.

Figures from the banking and financial sector are also on the list, including Premier Bank chairman HBM Iqbal, NRBC Bank chairman SM Parvez Tamal, and former SBAC Bank chairman Abu Zafar Mohammad Shafi Uddin.

Former Union Bank MD Mokammel Haque Chowdhury and former BSEC chairman Shibli Rubayat-Ul-Islam, along with eight of his family members, are being investigated.

The BFIU has sought assistance from foreign authorities by sending letters requesting information on money laundering activities involving six major business groups.

So far, the BFIU is investigating allegations of money laundering, loan fraud, and embezzlement of government funds against 20 business groups.

Reports on entities like the S Alam Group and Saifuzzaman Chowdhury Javed’s family have already been submitted to the Criminal Investigation Department and Anti-Corruption Commission for legal action.

Investigations are also going on regarding 18 other business groups, including Beximco, Summit, Bashundhara, Orion, Sikder, Nasa, and Nabil.

In addition, 110 incidents involving 343 individuals and 200 organizations are under investigation.​

 

[Saif]

Govt discards four ill-conceived projects after Tk 6.74b spent

The interim government has decided to terminate four of less-priority projects , including three named after Sheikh Hasina and her family members, on which Tk 6.74 billion has already been spent. Three of the projects under the annual development programme are Sheikh Hasina University in N

thefinancialexpress.com.bd

Govt discards four ill-conceived projects after Tk 6.74b spent
JAHIDUL ISLAM
Published :
Dec 15, 2024 00:55
Updated :
Dec 15, 2024 00:55

The interim government has decided to terminate four of less-priority projects , including three named after Sheikh Hasina and her family members, on which Tk 6.74 billion has already been spent.

Three of the projects under the annual development programme are Sheikh Hasina University in Netrakona, Sheikh Zahurul Haque Rural Development Academy in Jashore and Bangabandhu Sheikh Mujibur Rahman Novotheatre in Khulna.

Another scheme is for the procurement of six open-headed tourist buses for the Bangladesh Parjatan Corporation.

"The tenure of such projects has expired and the government decided not to extend time. Again, some of the projects having implementation tenure are also being suspended," said a high official concerned.

The planning ministry and implementing agencies are also searching for such unnecessary and politically motivated projects to cancel, according to him.

The costs of the projects in question were initially estimated more than Tk 34.17 billion, which was fully supported from the state coffers. Winding up these projects before completion has mitigated fiscal pressure by way of immediately saving Tk 27.44 billion.

However, experts and economists argue that terminating these projects prematurely will deprive potential beneficiaries of their intended benefits.

They say a significant portion of the budget already spent on these projects might have been wasted, warning that partially completed buildings and materials could gather dust if left unfinished.

"The projects are being cancelled midway because they were undertaken without assessing the actual needs of the people and the government's capacity to implement them," said Dr Mustafa K Mujeri, former director -general of the Bangladesh Institute of Development Studies.

Many of these projects lacked proper feasibility study. The names of influential family members were used to facilitate their approval and funding, making it easier to exploit public resources, he added.

Dr Mujeri called for identifying and cancelling politically motivated projects and also for ensuring accountability of those involved in initiating them.

Officials said the Agriculture, Water Resources and Rural Institutions Division of the Planning Commission conducted a meeting of the project evaluation committee (PEC) to end the academy project in Jashore halfway through.

The project, initiated in 2022, involving Tk 1.99 billion, was programmed for completion by January 2025. So far, Tk 269.49 million has been spent.

The academy in Monirampur, Jashore, was undertaken as a tribute to Sheikh Zahurul Haque, the grandfather of deposed premier Hasina and father of Sheikh Fazilatunnesa.

Chairing the PEC meeting, Dr Neyamat Ullah Bhuiyan, member of the Commission, said such a situation could have been avoided had feasibility studies, potential outcomes and optimal use of invested funds been thoroughly considered before undertaking the projects.

He highlighted the importance of conducting proper surveys to ensure viability.

Another official suggests reviewing the past projects executed by the Rural Development and Cooperatives Department, particularly those aimed at establishing development academies, training academies or similar entities.

As the activities of two long-standing academies -- BARD in Comilla and RDA in Bogura -- are well-documented, the contributions of the recently established ones in Gopalganj, Jamalpur and Rangpur remain less visible.

As Gopalganj Training Complex is only 70 kilometres from Jashore, he suggests that related training and development activities in Jashore region be efficiently conducted from the Gopalganj facility in order to eliminate the need for redundant infrastructure.

Meanwhile, planning adviser Dr Wahiduddin Mahmud discarded a project taken for the procurement of tourist coaches after a waste of Tk 0.72 million.

The project was initiated in 2020 at Tk 271.8 million with an eye to carrying tourists from home and abroad to attractive tourist spots.

Officials said tender was invited for the project several times but no party submitted any proposal. So, the previous government itself decided to conclude the project.


The Commission extended the tenure of the 'Establishment of Sheikh Hasina University, Netrakona', project up to this December ignoring a proposal for extending it up to June 2027.

The first revised cost was set at Tk 6.46 billion, which was only 24.48 per cent of the original project cost of Tk 26.37 billion.

The project sought to develop a modern campus through setting up 12 residential buildings worth Tk 5.21 billion, 17 non-residential structures worth Tk 7.91 billion and some other infrastructures.

However, the revised project will not help complete any academic or administrative building.

The administrative and academic activities of the university have been continuing on the premises of the Technical Training Centre since 2017.

The current status of the project makes it difficult to shift activities to own campus by January, according to Dr Mohammad Harun-Or-Rashid, registrar, Sheikh Hasina University, Netrakona.​

 

[Saif]

Information on ‘our’ assets should also be open, says Hafiz Ahsan

Retired army officer Hafiz Ahsan Farid, the new commissioner (inquiry) of the Anti-Corruption Commission (ACC), has said the information on the assets of those engaged in the prevention of corruption should also be open. Speaking to journalists on the first working day at the ACC office in Dhaka o

thefinancialexpress.com.bd

Information on ‘our’ assets should also be open, says Hafiz Ahsan
FE ONLINE DESK
Published :
Dec 15, 2024 23:25
Updated :
Dec 15, 2024 23:25

Retired army officer Hafiz Ahsan Farid, the new commissioner (inquiry) of the Anti-Corruption Commission (ACC), has said the information on the assets of those engaged in the prevention of corruption should also be open.

Speaking to journalists on the first working day at the ACC office in Dhaka on Sunday, he said: "It should be open whether we who work to curb corruption are corruption-free or not.”

"The people of the country should know how much wealth we had when we joined the work and how much wealth we will have when we leave this commission."

Hafiz arrived at the ACC office after assuming responsibility as the commissioner in the afternoon. He spoke to the media while leaving, reports bdnews24.com.

"Considering the trust and credibility with which I have been appointed, I think it is a sacred deposit from the government and the people.”

"Coupled with this deposit is the dream of the July-August uprising. This deposit is stained with the blood of our revolutionary martyred students and people. I will try my best to save the deposit."

ACC Chairman Mohammad Abdul Momen and another member of the commission, retired district and sessions judge Mian Md Ali Akbar Azizi, joined the work on Wednesday.

Hafiz did not take on his duties that day.

Earlier on Dec 10, a notification signed by Cabinet Secretary Sheikh Abdur Rashid announced the appointments of the ACC chairman and two commissioners.

On Oct 29, former ACC chief Mohammad Moinuddin Abdullah, and former commissioners Asia Khatoon and Jahurul Haque resigned from their posts, citing “personal reasons” amid a widespread reshuffling in the administration after the government changeover.

Moinuddin was once a senior secretary in the Ministry of Agriculture. He took over as ACC chairman on Mar 3, 2021.

Although they were assigned to the ACC for a five-year term, they had to leave one and a half years before their term was completed under the changed circumstances.

The interim government formed a search committee to recommend candidates for the position of ACC chairman and commissioners on Nov 10.

Supreme Court Appellate Division Justice Md Rezaul Haque was appointed as the head of the committee.

The new chairman and two commissioners were appointed within a month of the formation of the selection committee to form the new ACC commission.​

 

[Saif]

Graft in RNPP project: HC issues rule over ACC’s inaction in probe

The High Court has issued a rule seeking explanation as to why the inaction of the ACC in probing the allegations of graft against ex-prime minister Sheikh Hasina, her son Joy and niece Tulip in the Rooppur Nuclear Power Plant project should not be decaled illegal. The High Court bench of Justice

thefinancialexpress.com.bd

Graft in RNPP project: HC issues rule over ACC’s inaction in probe
UNB
Published :
Dec 15, 2024 21:04
Updated :
Dec 15, 2024 21:04

The High Court has issued a rule seeking explanation as to why the inaction of the ACC in probing the allegations of graft against ex-prime minister Sheikh Hasina, her son Joy and niece Tulip in the Rooppur Nuclear Power Plant project should not be decaled illegal.

The High Court bench of Justice Fahmida Kader and Justice Mubina Asaf issued the rule on Sunday following a writ petition in this regard.

Fourteen people including Secretary of Ministry of Power, Energy and Mineral Resources, Secretary of the Ministry of Home Affairs, ACC Chairman, Sheikh Hasina, Sajib Wazed Joy and Tulip Siddique were made respondents to the rule.

The writ petition, filed on September 3 by Bobby Hajjaj, Chairman of the National Democratic Movement (NDM), sought an investigation into the alleged embezzlement of Tk 600 billion (Tk 60,000 crore) from the RNPP through a Malaysian bank by them.

A report on the alleged corruption involving Sheikh Hasina’s family members in the Rooppur Nuclear Power Plant was published in various newspapers on August 19.​

 

[Saif]

Graft allegations against Tulip make headlines in UK

The ACC accused her and family members of embezzling billions as part of a deal for a nuclear power plant in Bangladesh -- Rooppur Power Plant Project

www.thedailystar.net

Graft allegations against Tulip make headlines in UK

Several news outlets in the UK yesterday reported on the corruption charges brought against UK Treasury's Economic Secretary Tulip Siddiq by Bangladesh's Anti-Corruption Commission (ACC).

The ACC accused her and family members of embezzling billions as part of a deal for a nuclear power plant in Bangladesh -- Rooppur Power Plant Project.

Tulip Siddiq, 42, who is responsible for tackling corruption in UK financial markets, is alleged to have brokered a deal with Russia in 2013 that overinflated the price of a new nuclear power plant in Bangladesh.

The allegation is part of a wider investigation by the ACC into Siddiq's aunt, Sheikh Hasina, who was deposed as prime minister of Bangladesh in August.

The allegation triggered a political storm in the UK with the government defending her and the opposition calling on her to come clean.

UK Prime Minister Keir Starmer has given his full support to Tulip Siddiq, reports The Guardian.

Starmer's official spokesperson said the prime minister had full confidence in Siddiq and confirmed that she would continue to handle anti-corruption issues.

"The minister has denied any involvement," he said. "Obviously, I can't speak to the Bangladeshi anti-corruption commission, and also can't comment on unconfirmed media speculation."

A source close to Siddiq said these were "trumped up charges".

The Conservatives in the UK immediately seized on the allegations, saying it was "the latest stain on Keir Starmer's judgment," reports BBC.

Conservative shadow home office minister Matt Vickers said: "The fact Labour's anti-corruption minister is reportedly embroiled in a corruption case is the latest stain on Keir Starmer's judgement.

"It is high time she came clean. The British public deserve a government that is focused on their priorities, not distracted by yet another scandal."

The submission to the ACC of Bangladesh has alleged that Siddiq was "instrumental in managing the affairs and coordinating meetings with Russian government officials" to orchestrate the £10b Rooppur Power Plant Project deal and that Hasina and family members received "30 percent of the embezzled funds in exchange for their mediation".

Footage from 2013 appears to show Siddiq attended the deal's signing by Hasina and Russian President Vladimir Putin at the Kremlin, recorded by the Associated Press.

The BBC understands that Siddiq has not had any contact with the ACC as part of the investigation.

Syed Faruk, who runs the UK branch of Hasina's Awami League party, said the claims were "fabricated".

Siddiq was elected MP for Hampstead and Highgate in 2015, the north London constituency neighbouring Prime Minister Sir Keir Starmer's seat of Holborn and St Pancras.

Corruption allegations and convictions against top leaders of ousted governments are not new in Bangladesh.

Hasina's main predecessor as prime minister, Khaleda Zia faced similar charges, which she also dismissed as politically motivated. As did ex-president Hussain Muhammad Ershad, who seized power as head of the army during a bloodless coup in 1982.

The Bangladeshi judiciary's independence has long been questioned.

Government changes often bring judicial reshuffles, with ruling parties regularly accused of targeting political opponents.​

 

[Saif]

ACC back in action to net ‘big fish’

The formation of the new commission has brought speed back to the Anti-Corruption Commission’s work. In just five days since its formation, the new commission’s scrutiny of heavyweight corruption suspects, deposed prime minister...

www.newagebd.net

ACC back in action to net ‘big fish’
Solamain Salman 21 December, 2024, 00:11

The formation of the new commission has brought speed back to the Anti-Corruption Commission’s work. In just five days since its formation, the new commission’s scrutiny of heavyweight corruption suspects, deposed prime minister Sheikh Hasina among them, has gathered a fast pace.

In a flurry of activity in just five days, starting from its first working day on December 12, the agency filed cases and launched inquiries against high-profile corruption suspects, conducted anti-graft drives and issued international travel bans on suspects.

In December 12–19, the agency filed 20 cases against around 100 mostly powerful corruption suspects, former ministers, lawmakers, top bosses of banks and businessmen among them.

It also launched inquiries against at least 20 bigwig corruption suspects, conducted 29 anti-graft drives at different government offices, and issued international travel bans on around 30 high-profile corruption suspects during this time.

‘The commission will not spare any corrupt individual, and no favouritism will be shown to any special cadres or individuals,’ stated its director general for prevention Md Aktar Hossain.

Officials said that the commission’s activities were almost stalled for more than one month until the appointment of a new chairman and commissioners on December 10.

After joining office on December 11, its new chairman Mohammad Abdul Momen said that the commission would start probes into the allegations against ‘big fish’ immediately, as it was the expectation of people.

‘We will take action immediately about those cases of corruption that significantly affected the country and take action against the culprits behind the corruption,’ he said at the time.

In its first five working days, at least 20 cases were filed against around 100 corruption suspects, including former ministers Zahid Maleque, Sadan Chandra Mojumder and Mohibul Hassan Chowdhury, and former state ministers Mirza Azam and Zunaied Ahmed Palak, over allegations of amassing illegal wealth.

The accused in these cases also include former inspector general of police Benazir Ahmed, former Detective Branch of police chief Harun-or-Rashid, former lawmakers Nizam Uddin Hazari and Naimur Rahman Durjoy, former National Board of Revenue official Matiur Rahman, former Islami Bank chairman Ahsanul Alam, and the bank’s managing director Mohammad Monirul Moula.

The commission has also sped up its probes into new graft allegations, while widening its net in a bid to bring more individuals under scrutiny.

The ACC launched inquiries against at least 20 heavyweights, including former prime minister Sheikh Hasina, her sister Sheikh Rehana and son Sajeeb Wazed Joy, former minister and Awami League general secretary Obaidul Quader, former IFIC Bank chairman Salman F Rahman, former managing director Shah Alam Sarwar, former revenue board chairman Najibur Rahman, sacked major general Ziaul Ahsan, former secretary ABM Amin Ullah Nuri, and S Alam Group chairman Mohammad Saiful Alam, over allegations of amassing illegal wealth, power abuse and money laundering.

Regarding inquiries, the commission has started an inquiry into allegations of embezzling Tk 80,000 crore by Sheikh Hasina, her sister Sheikh Rehana, her son Sajeeb Wazed Joy, and Rehana’s daughter Tulip Siddiq from different development projects, including the Rooppur Nuclear Power Plant project initiated during the Awami League regime.

The agency also issued travel bans on around 30 people, including former ministers Amir Hossain Amu, Mujibul Haque and Shariar Alam, former lawmakers Nurnabi Chowdhury Shawon, Abu Jahir, and Alauddin Ahmed Chowdhury Nasim, Bahauddin Bahar, Dhaka Regency hotel managing director Kabir Reza, Samabay Bank former chairman Mohiuddin Ahmed, and former Cumilla city mayor Thasin Bahar Suchana.

The commission’s enforcement unit in these five days also conducted around 30 anti-corruption drives at different government offices, including the Bangladesh Road Transport Authority, passport offices, land offices and the Election commission office.

When asked, former commission director general Moyeedul Islam told New Age, ‘The new commission is now filing cases and initiating inquiries that were pending during its absence.’

‘If the new commission can net “big fishes”, those who are involved with mega corruption and ensures punishment for them, its capacity would be proved only then,’ he added.

Experts and stakeholders have long been suggesting reforms in the Anti-Corruption Commission to sufficiently empower it to act with effective independence, freeing it from both political and bureaucratic influences.

Successive governments through its authority over appointing the top brass of the agency, placed its favoured officers in the commission and maintained comfortable control over it. As a result, the commission’s ability to act with independence in fighting corruption had severely been stymied right from its establishment in 2004, experts told New Age.

Despite officially being an independent agency, the ACC has rather been used as a weapon by the political governments against their opponents, they observe.

For the same reason, the agency could rarely take into account the corruption allegations brought against the powerful ones, belonging to or associated with the ruling parties, experts have said.

Former senior secretary Mohammad Abdul Momen was appointed as the commission chairman with former district and sessions judge Mia Mohammad Ali Akbar Azizi and Brigadier General (retd) Hafiz Ahsan Farid appointed as commissioners on December 9.​

 

[Saif]

Summit power co dodges Tk 11.12 billion in taxes

An investigation by the Central Intelligence Cell (CIC) in the revenue sector has uncovered that Summit Group has evaded payment of Tk 11.12 billion in taxes in the single-largest case of tax-dodging in Bangladesh, officials say. The tax avoidance has occurred by way of not deducting withh

thefinancialexpress.com.bd

Summit power co dodges Tk 11.12 billion in taxes
'We have never evaded tax', Summit claims
Doulot Akter Mala
Published :
Dec 22, 2024 00:35
Updated :
Dec 22, 2024 00:35

An investigation by the Central Intelligence Cell (CIC) in the revenue sector has uncovered that Summit Group has evaded payment of Tk 11.12 billion in taxes in the single-largest case of tax-dodging in Bangladesh, officials say.

The tax avoidance has occurred by way of not deducting withholding tax on dividend payments from two of its outfits, one opened in the trade entrepot of Singapore.

It is the largest private -sector participant in the power sector during the previous government's tenure, when quick-rental power deals offered a sort of indemnity to certain private power producers.

A CIC official described it as "the country's largest TDS (Tax Deducted at Source) scandal" discovered so far.

The tax demand has been unearthed by the CIC following cancellation of discriminatory tax privileges for the company not available for similar type of other power companies, officials said.

As per the CIC findings, Summit Corporation Limited failed to deduct 20-percent withholding tax while paying dividends to its shareholder Summit Power Limited.

Similarly, Summit Corporation Limited did not deduct 15-percent withholding tax while transferring dividends to Summit Power International, a Singapore-listed company.

Asked how this tax will be recovered or what actions the National Board of Revenue (NBR) will take, Dhaka Tax Zone-2 Commissioner Barrister Mutasim Billah Faruqui said, "We are now moving for collection from Summit. A demand notice might be issued in this regard this week."

He said the NBR chairman directed them to proceed with recovery.

The Summit management has limited scope to contradict the tax demand as it has been settled by the NBR as central authority.

However, the company can lodge appeal or go to tribunal paying 10-percent tax for lingering the process of tax recovery.

"It was a discriminatory tax privilege enjoyed by Summit as such benefits were not available for similar companies," he added.

"The revenue board is the central authority to interpret the tax evasion, so it's proved that the taxpayer has avoided or evaded payment of taxes, not an allegation," he notes about the status of the tax case.

The only way the conglomerate can now get away from the toils of tax law is to pay off the demanded taxes, the official categorically states.

Responding to FE's query, Summit Corporation Ltd has issued an official statement to clarify their position.

"We are yet to receive any information from NBR or any of tax authorities. Summit has never evaded any tax. Upon receipt of any letter from NBR or tax authorities, we will do whatever is required to be done as per the laws of Bangladesh. We always did and shall always abide by the laws."

The once-favoured corporate falls from grace after a change of guards on the corridors of power. After the interim government assumed responsibility following the August changeover, the NBR's CIC began investigating large industrial groups.

A single case from Summit Group revealed this massive tax evasion or avoidance, which taxmen describe as the tip of the iceberg in corporate cooking of books apparently to evade high-rated business taxes.

Findings from the investigation: Over a month and a half, the CIC had scrutinized all shareholder records, dividend declarations, and disbursement information of Summit Power Limited, leading to these findings.

On August 20, investigations were initiated into several major industrial groups, including Beximco, Bashundhara, Summit, Orion, and Nassa, seeking transaction details of their owners and family members. Letters were sent to banks and financial institutions to gather information.

Initially, the investigation targeted personal tax evasion. However, suspicions of higher evasion at the corporate level led to an expanded inquiry, including assigning investigation officers for each company. So far, this remains the largest instance of tax evasion uncovered.

Summit Power Limited's capital structure: Summit Power Limited has a paid-up capital of Tk 10.67 billion. Its shareholders include Summit Corporation Limited, holding 63.19 per cent, Eurohub Investments Limited (3.65 per cent), institutional investors (18.52 per cent), and general investors (14.64 per cent).

According to Section 117 of the Income Tax Act 2023, companies registered in Bangladesh are required to deduct withholding tax while paying dividends.

However, Summit Power failed to deduct 20-percent withholding tax on dividends paid to Summit Corporation. In contrast, other entities and investors were subject to deducting the taxes. From the financial years 2017-18 to 2023-24, Summit Power Limited had not deducted Tk 3.18 billion in withholding tax on dividends paid to Summit Corporation. Including penalties, this amount has now ballooned Tk 4.65 billion.

A similar aberration occurred when Summit Corporation transferred dividends to Summit Power International.

NBR decisions on tax recovery: The duo of Summit Power Limited and Summit Corporation Limited are taxpayers under the jurisdiction of NBR's Tax Zone-2, which is responsible for collecting the unpaid taxes.

Based on requests from this tax zone, the NBR revoked its previous clarification, which had exempted Summit Power from deducting withholding tax. A new clarification was issued stating that a 20-percent withholding tax must apply to dividends paid by Summit Power Limited to Summit Corporation Limited.

A 15-percent withholding tax must apply to dividends paid by Summit Corporation Limited to the non-resident company Summit Power International Limited under the Bangladesh-Singapore double-taxation -avoidance agreement.

Commissioner Mutasim Billah Faruqui explains, "When a clarification is invalidated, any benefits derived from it become void. The previously obtained exemption is now deemed unlawful, and taxes will be imposed accordingly."

Summit Power International's chairman, Aziz Khan, is adjudged as one of Singapore's wealthiest individuals. Bank accounts belonging to him and his 11 family members have been frozen by the Bangladesh Financial Intelligence Unit (BFIU), which issued directives to all banks and financial institutions to this effect.

Various agencies continue to investigate allegations against Summit Group and his family members. Economist Dr Zahid Hussain, former lead economist of the World Bank Bangladesh, says it might be legally ambiguous to claim as tax evasion as the privilege has been availed as per a government gazette issued by the NBR.

"It can be said as tax evasion. It is horizontally discriminatory but they have legalized it through clarification. Similar companies were not entitled for the benefit," he added.

"It is clear that the deal has been signed through corruption or underhand dealings and it must be investigated why such discriminatory clarification has been issued," he added.​

 

[Saif]

New ACC chief discloses his wealth, income and liabilities

Anti-Corruption Commission (ACC) Chairman Mohammad Abdul Momen on Sunday revealed his assets and liabilities to the media. He shared his income and expenditure and asset details with the media at the views-exchange programme between the new commission members and media professionals at i

thefinancialexpress.com.bd

New ACC chief discloses his wealth, income and liabilities
UNB
Published :
Dec 22, 2024 21:11
Updated :
Dec 22, 2024 21:11

Anti-Corruption Commission (ACC) Chairman Mohammad Abdul Momen on Sunday revealed his assets and liabilities to the media.

He shared his income and expenditure and asset details with the media at the views-exchange programme between the new commission members and media professionals at its headquarters in the city.

The ACC Chairman said that he has formally submitted his assets and liabilities details to the ACC Reform Commission while other commissioners will submit their assets and liabilities details.

Mohammad Abdul Momen joined the office on December 11, a day after being appointed. On that day, he had announced that he would disclose his movable and immovable assets and income and expenditure accounts within seven days.

On that day, Transparency International Bangladesh (TIB) called on the new ACC Chairman and Commissioners to disclose their income and wealth statements for the sake of transparency.

Revealing his assets, the ACC Chairman said that he has an apartment of 1,500 square feet, consisting of two 750 square feet apartments in Basila. He is in the process of acquiring another 700 square feet there.

"I have a vacant land with my wife in Purbachal American City, five kathas. I was a member of the BCS administration committee. There is 10 kathas of land there for eight members. My share will be 1.25 kathas. I paid money in 2007, but I have not received possession yet," he said.

He also said that he had deposited TK75000 for a plot in RAJUK. Till date, there has been no settlement of it. For whatever reason, the government did not give it to me.

"I will apply again. Apart from this, I do not have any other immovable assets," he clarified.

Regarding movable assets, the ACC chairman said, there are 25 self-contained books of different sizes. There are many expensive books. There are furniture and electronic equipment, including things worth five lakh taka. There

He said he received interest from a savings certificate of five years of Tk 3.0 million and a savings certificate of Tk 2.0 lakh taka every three months. "I have not withdrawn my GPF money, there is Tk 1.7 million there," he added.

Telling about his source of income, he said, my income from work - the sale proceeds of inherited assets.

"I teach, lecture, write. I bought a land outside the embankment five and a half centuries ago, and I will get some money by selling it," he shared.

He claimed his working life is long. "I started earning since my student days. When I leave this job, you will calculate how much this wealth has increased, how much it has decreased," he also said.

The ACC Chairman said the political changeover we are witnessing in Bangladesh since August 5 is unique in world history, as demonstrated by the fact that the Prime Minister fled, and at the same time the Khatib of Baitul Mukarram has also fled.

Saying that corruption is rampant in the state, he said public awareness needs to be created on this issue.

He also emphasised active engagement and asked the media to play a role in this regard.

ACC Commissioner Commissioner (Inquiry) Mian Muhammad Ali Akbar Azizi said ACC is working with only half its designated manpower.

"We will investigate freely. Where there will be no bias. We are committed to the nation," he said.

ACC Commissioner (Investigation) Brigadier General (retd) Hafiz Ahsan Farid said ACC's professional base is very strong. Even after 42 days of non-commission, ACC officers and employees have worked tirelessly.

"ACC will not enslave any people in the world," he added.​