Salman faces CID probe for laundering Tk33,470cr, Nafeez for fund embezzlement

Infographics: TBS

Controversial businessmen Salman F Rahman and Chowdhury Nafeez Sarafat, who remained largely untouchable during Sheikh Hasina's 15-year rule, are now under investigation by the CID's financial crime unit.

The probe centres on allegations of significant money laundering and financial sector irregularities according to a preliminary report prepared by the Criminal Investigation Department (CID).

Salman, vice chairman of Beximco Group and an adviser to deposed prime minister Hasina, is accused of laundering Tk33,470 crore abroad, reportedly acquired through loans from seven banks over the past 15 years.

Of this amount, Tk21,681 crore was taken from state-owned Janata Bank and an additional Tk5,281 crore from IFIC Bank, where he served as chairman, according to preliminary estimates from the CID.

Salman is also alleged to have profited Tk6,600 crore through manipulation of the country's capital market and is blamed for failing to repatriate Tk1,485 crore in export proceeds.

The Bangladesh Securities and Exchange Commission today (1 Septembe) formed a committee to investigate Salman's Beximco Green Sukuk and the IFIC Guaranteed Sreepur Township Green Zero Coupon bonds.

Nafeez Sarafat and his associate Hasan Taher Imam, who have operated RACE Asset Management since 2008, are also facing charges of money laundering, fraud, and illegal diversion of funds. The asset management company currently oversees 13 funds.

CID officials say RACE has mutual funds with a combined value of Tk4,500 crore, raised from various institutions and individuals.

However, the fixed deposit receipts (FDRs) linked to these funds were allegedly terminated prematurely in collusion with bank officials, depriving investors of profits worth crores of taka.

Additionally, money was allegedly taken from the funds to purchase shares in the names of various relatives of Nafeez instead of using the funds appropriately.

Sources indicate that this scheme allowed them to launder money and deprive investors of crores of taka.

A senior officer from the CID's financial crime unit, speaking on condition of anonymity, told The Business Standard, following the student-led uprising, the interim government ordered an inquiry into financial irregularities spanning the past 15 years.

Subsequently, a CID meeting was convened over investigating these irregularities, he added.

During the meeting, a preliminary report on the money laundering activities linked to Salman-owned Beximco over the past 15 years was presented, and authorisation was sought for a more detailed investigation.

Following this, CID officials approved the comprehensive probe. TBS has obtained a copy of the preliminary report.

Allegations against Salman

According to the report, a preliminary review has revealed that Beximco Group secured loans totalling Tk33,470 crore from seven banks over the past 15 years through fraudulent means.

Of this amount, Tk21,681 crore was borrowed from Janata Bank under the names of 29 companies, Tk5,218 crore from IFIC Bank, Tk295 crore from National Bank, Tk5,671 crore from state-owned Sonali, Agrani, and Rupali banks, and Tk605 crore from AB Bank. It appears that these funds have been laundered abroad.

The report also indicates that, in recent years, Salman amassed Tk6,600 crore from share manipulation and was involved in defrauding an additional Tk20,000 crore from the country's stock market through manipulative practices.

Tk1,485cr laundered through son's company

RR Global Trading, a Dubai-based buying house owned by Salman F Rahman's eldest son Ahmed Shayan F Rahman, is mentioned in the report.

According to the report, RR Global Trading exported products to Dubai and Saudi Arabia through 18 companies owned by Beximco Group, with an export value of approximately Tk1,485 crore.

However, this money was not repatriated to Bangladesh, leading to allegations of trade-based money laundering.

The report states, "Most of the funds from Beximco Pharmaceuticals, which was established through joint investment in Saudi Arabia, have been transferred from Bangladesh through over-invoicing, under-invoicing, and hundi."

According to the report, another ongoing money laundering investigation against the said person and organisation is in the final stages of the allegation of laundering large amounts of money abroad under the guise of import-export by taking loans through fraudulence.

A case will soon be filed under the Money Laundering Act following a detailed investigation.