ACC Approves Three Cases Against Salman F Rahman, Son and 29 Others: Evidence of Tk 1,121 Crore Embezzlement, Tk 36,000 Crore Loan Laundering Alleged

The Anti-Corruption Commission (ACC) has approved three separate cases against former prime minister's former adviser Salman F Rahman, his son A S F Rahman, bank officials and others. They face allegations of embezzling thousands of crores of shareholders' money through share market fraud, placement share manipulation and deception.

The ACC said it found information that nearly Tk 36,000 crore was taken as loans from various public and private banks by exerting undue influence and laundered abroad. Of that, its inquiry team found evidence of embezzlement of Tk 1,121 crore 49 lakh 4 thousand 755 taken as loans from various banks.

Finding their involvement, the ACC approved three cases naming 69 accused in total, including Salman F Rahman and his son A S F Rahman. Thirteen accused appear in all three cases, so the number of distinct accused across the three cases is 31.

ACC Secretary Md Saidur Rahman Khan disclosed the information on Monday (2 November).

The ACC said the three cases bring charges under sections 409, 420, 467, 468, 471, 477A and 109 of the Penal Code, section 5(2) of the Prevention of Corruption Act, 1947, and relevant provisions of the Money Laundering Prevention Act, 2012.

According to the complaints, loans and Export Development Fund (EDF) facilities were taken through Janata Bank's local office in the names of Springful Apparels Limited, Urban Fashions Limited and Midwest Garments Limited by showing fake imports and exports. Money was embezzled and laundered abroad through this, the complaints allege.

The three complaints name Salman F Rahman, A S F Rahman, directors and the managing director of Beximco Limited, directors of the garment companies concerned, and former and current officials of Janata Bank. The complaints speak of abuse of power and collusion by Janata Bank's then CEO and managing director Abdus Salam Azad and officials at various levels, along with Beximco-linked persons.

The first case alleges embezzlement of Tk 141 crore 28 lakh 1 thousand 171 in the name of Springful Apparels Limited, the second Tk 417 crore 4 lakh 4 thousand 56 in the name of Urban Fashions Limited, and the third Tk 563 crore 16 lakh 99 thousand 527 in the name of Midwest Garments Limited.

The ACC complaint says loans and EDF facilities were sanctioned in favour of the companies even though they were newly formed. Their directors had no prior experience of running a business. Money was later taken through the bank by showing imports and exports among themselves.

In Springful Apparels' case, alleged bills worth $17,061,582 were created. Against that, only $440,392 came into the country. The remaining $16,621,190 — more than Tk 141.28 crore — is alleged to have been embezzled and laundered. The Springful Apparels case names 22 accused.

The accused include former MP and Beximco Group vice-chairman Salman Fazlur Rahman, his son A S F Rahman, Beximco Limited managing director O K Chowdhury and directors Iqbal Ahmed, A B Siddiqur Rahman, Masud Ikramullah Khan, Shah Manjurul Haque and Reem H Shamsuddoha. Also accused are Springful Apparels managing director Mohaiminul Islam and director Kohinur Abedin, Crescent Accessories Limited managing director Abu Nayeem Mahmud Salehin and director Md Mostafizur Rahman Tanvir, RR Global Trading FZE proprietors Ahmed Shayan Fazlur Rahman and Ahmed Shahriar Rahman, and former Janata Bank CEO and managing director Abdus Salam Azad along with other former bank officials.

The second case alleges that payments worth $49,063,577, or about Tk 417.04 crore, were taken in the name of Urban Fashions. The money is alleged to have been embezzled by showing imports and exports among themselves and laundered through transfer, conversion and handover, including cash withdrawals. The Urban Fashions case names 22 accused, including its managing director Helal Uddin and director Sahida Rahman and former Janata Bank officials.

The third case alleges payments worth $66,255,288, or about Tk 563.17 crore, were taken in the name of Midwest Garments. Showing fake imports and exports through the company, Tk 563 crore 16 lakh 99 thousand 527 is alleged to have been embezzled and laundered abroad. The Midwest Garments case names 25 accused.