Certain goods were from Bangladesh and the Bangladesh Bank lent dollars from its reserves to purchase the raw materials for the exported products, while a company owned by the exporter's son would buy the exported goods in Dubai. However, the money did not arrive in the country on time, thus, USD 80 million or Tk 9.57 billion got stuck in three countries including the United Arab Emirates.
These money laundering arrangements were carried out by Salman F Rahman, vice president of BEXIMCO Group and adviser to the former prime minister for private industry and investment, and Dubai-based RR Global, owned by his son Ahmed Shayan F Rahman.
Investigations by the police’s Criminal Investigation Department (CID) found that 17 companies of BEXIMCO Group siphoned off money to three countries by misinvoicing in apparel exports over the past 12 years. BEXIMCO Group laundered the money through state-owned Janata Bank. The authorities concerned have now decided to file cases against the owners and officials of the conglomerate.
BEXIMCO Group is the top defaulter of Janata Bank with the conglomerate’s borrowings close to Tk 250 billion and Tk 180 billion of those are defaulted loans.
The export department of Janata Bank told the CID in an attestation that BEXIMCO Group exported products of about 80 million between January 2012 and 31 August 2024. As of 2 September 2024, this money did not arrive in the country. Janata Bank managing director Abdul Jabbar confirmed the sending of the attestation letter.
Motijheel police station officer-in-charge Mohiul Islam told Prothom Alo decisions have been taken to file several lawsuits against BEXIMCO Group over money laundering.
The student-people's movement ousted the Sheikh Hasina government on 5 August and Salman F Rahman was arrested from the Sadarghat area of Dhaka on 14 August. The Anti-Corruption Commission (ACC) initiated probes into allegations of money embezzlement and laundering against Salman F Rahman on 22 August while the CID’s financial crime unit opened an investigation into allegations of money laundering against BEXIMCO Group on 1 September.
Amount of laundered money
Investigation sources said 17 companies of BEXIMCO Group exported apparel products to UAE, Singapore and the UK. The probe found that the Dubai-based company whose name came up in trade misinvoicing is owned by the family of Salman F Rahman and BEXIMCO Group laundered about USD 80 million or Tk 9.57 billion in the guise of apparel exports.
Sohail Rahman is chairman of BEXIMCO Group and his brother Salman F Rahman is vice chairman. Ahmed Shahriar Rahman, son of Sohail Rahman and Shayan F Rahman, son of Salman F Rahman are the founders of RR Holdings, the parent company of RR Global. RR Holdings is registered at the Zalfa Building in Al Garhoud of Dubai.
Data on RR Holdings' founders and businesses were available on its website before 5 August. But some information including details on their founders was removed from the website afterwards. “RR Holdings Ltd is a diversified conglomerate with operations and investments across industries including Oil & Gas, Power, Textiles and Trading. It is engaged in the bulk sourcing and import of LPG and has developed substantial infrastructure with respect to storage and bottling plant facilities as well as competitive cylinder manufacturing,” the website reads.
CID sources said BEXIMCO Group also laundered money abroad by taking loans from 7 banks including Janata Bank through fraudulence and cheating. Besides, BEXIMCO Group also borrowed in name or anonymously from IFIC Bank, National Bank, AB Bank, Sonali Bank, Agrani Bank and Rupali Bank. The conglomerate took Tk 66 billion from the market by issuing bonds over the past three years. The CID also found that BEXIMCO also received another Tk 200 billion.
According to CID sources, BEXIMCO Group built BEXIMCO Pharmaceuticals in Dammam, Saudi Arabia and the entire money was taken from the country. CID is also investigating allegations against BEXIMCO Group of laundering Tk 13.50 trillion through trade misinvoicing other than apparel export business.
When contacted, BEXIMCO Group’s public relations firm Impact PR declined to comment.
Janata’s liberal about BEXIMCO
BEXIMCO Group is a very old client of Janata Bank. The conglomerate ventured into business with loans from Janata Bank. The group’s clothing companies started taking loans from Janata Bank in 1998.
Salman F Rahman became influential after Awami League came to power in 2008. BEXIMCO Group’s textile and LPG companies took loans from Janata Bank and the bank lent aggressively to the conglomerate in 2018. Janata Bank’s local branch in Motijheel financed it. Mizanur Rahman was the branch manager and he is now with the bank headquarters.
The lending ceiling of Janata Bank is Tk 15 billion per client, but the bank lent BEXIMCO Group 16 times more than the limit to about Tk 250 billion, and Tk 180 billion of those are defaulted loans. Since 50 per cent of the loans become defaulted, Janata Bank now faces a liquidity crisis.
As per the rules of Bangladesh Bank, exporters are required to bring the export earnings home within 120 days, or else they might face action, but no step was taken against BEXIMCO Group.
Regarding this, Mustafa K Mujeri, former chief economist of Bangladesh Bank, told Prothom Alo it is a major irregularity and crime not to bring export earnings home for 12 long years. There is no reason behind this except money laundering. Despite the export earnings not coming home, the way the Janata Bank had been providing money to the conglomerate is a crime. Those of BEXIMCO and Janata Bank who are involved in this crime should be punished. Even if it becomes necessary to sell the assets of BEXIMCO Group, effective measures must be taken to recover the money, he added.