Beximco Group vice chairman Salman F Rahman was appointed as the private industries and investment affairs adviser of former prime minister Sheikh Hasina in 2019. Afterwards he became the main controller of the financial sector. He effectively became the chief regulator of the financial sector, with his opinions seemingly dictating policy decisions.
Taking advantage of this, he withdrew significant sums of money from multiple banks, under various names, as loans until the fall of the Awami League government on 5 August.
Since the rules limited the amount of loans he could take, he created several companies under the names of others. Additionally, by introducing new investment products, he raised funds not only from banks but also from individual investors.
Bangladesh Bank and the Bangladesh Securities and Exchange Commission eased multiple regulations to allow Salman F Rahman to access funds in this manner.
According to documents obtained by Prothom Alo, Beximco Group’s loan amount (including non-funded loans) from eight public and private banks has reached Tk 398.97 billion.
These banks have also invested another Tk 26.16 billion in Beximco’s bonds and sukuk. Apart from this, Beximco is also indebted to other banks and financial institutions, which is now being investigated by the central bank. Therefore, the actual loans taken by Salman F Rahman are much higher.
It has been learned that Beximco Group owes money to state-owned banks like Sonali, Agrani, Rupali, and private banks like AB, EXIM, National, City, Shahjalal Islami, Southeast, Dhaka, and Dutch-Bangla, among others.
The documents show that Salman F Rahman became more reckless in the financial sector after the outbreak of the coronavirus in March 2020, especially after securing the job of supplying the COVID-19 vaccine. From July 2021 to June 2022, he took loans from Janata Bank, a state-owned bank, under the names of nine new companies.
In July 2022 alone, Beximco Group created loans under the names of eight companies. These companies now owe approximately Tk 130 billiuon. Altogether, Beximco Group's loan from Janata Bank stands at around Tk 250 billion, of which Tk 180 billion has already become defaulted.
As a result, Janata Bank now holds the highest amount of defaulted loans in the country. Janata Bank can only give a group a maximum of Tk 15 billion, but it has given almost 16 fold that amount.
In addition to being the prime minister's advisor, Salman F Rahman has been the chairman of IFIC Bank since 2015. Here too, he employed similar tactics, taking loans under various names and withdrawing funds from the bank through bills and bonds.
As a result, Beximco Group’s loans at IFIC Bank, under different names, have reached Tk 67.89 billion. The bank has also invested another Tk 4 billion in Beximco’s bonds and sukuk.
Despite 18 days of attempts to get a statement from Beximco Group, their public relations firm, Impact PR, was unable to provide any comments. Since the fall of the Awami League government and the arrest of Salman F Rahman, senior bank officials are now worried about these loans and investments. They are waiting for the government’s decisions on this matter.
Former president of the Economic Association and former professor of economics at Chittagong University, Moinul Islam, told Prothom Alo, "Salman F Rahman was one of the masterminds behind the looting of Bangladesh’s economy. Along with a few others, including S Alam, they looted the country. They were all part of Sheikh Hasina's plundering machinery. They must not be let off the hook under any circumstances. Sheikh Hasina is responsible for this. Decisions can be made regarding what happens to their businesses. We are waiting to see these looters face justice. I hope the current government will bring them to justice quickly."
Moinul Islam further said, "Salman F Rahman was so powerful that no one could stop him. This is why he had the opportunity to loot as he pleased. His power increased after becoming a government advisor."
Unique facilities
Beximco Group vice chairman Salman F Rahman issued a letter to the Bangladesh Bank governor on 5 August, 2014, with a unique proposal to restructure the loans. He sought different sorts of benefits, including a pause in loan repayments, a reduction in the interest rate, and an extension of the loan term.
He was not holding any official position during the time, though Awami League was in power. Still, the central bank governor, Atiur Rahman, conceded to his influence and issued a loan restructuring policy, ignoring the global standard.
Thanks to the policy, seven banks restructured Tk 52.45 billion loan in favour of the Beximco Group. Ten other business groups took similar advantage.
In his letter, Salman F Rahman wrote, “From 2001 to 2008, the group was harassed in various ways, including being blocked from obtaining loans due to political reasons. This is why it is facing capital shortage now and then.”
Freezing bank accounts
Later, Salman F Rahman did not write any letter seeking benefits, but his influence persisted. Since 2017, Beximco Communications has withdrawn more than Tk 70 billion from different banks and financial institutions through bonds, Sukuk bonds, IFIC Aamar Bond, and some other financial tools.
In a recent development, Bangladesh Securities and Exchange Commission (BSEC) approved the withdrawal of Tk 26.25 billion through new bonds.
According to insiders, Salman F Rahman did not face any difficulties to collect money throughout the last six years as all regulatory agencies had been under his control. It enabled him to acquire a huge sum of money from both banks and the stock market.