Beximco Group of companies owes Tk 500.98 billion in unpaid loans and liabilities, the central bank said in court submissions on the beleaguered conglomerate's current situation.
The business group's 'default' loan is recorded as Tk 255.23 billion and 'classified' loan Tk 310.75 billion, the Bangladesh Bank said in a report submitted Sunday to the High Court.
"Unless the repayment of the installments is made, the majority of the classified amount shall become defaulted in the near future," the report reads.
The companies of the corporate-the owner of which is now behind bars and faces expropriation orders-had received the loans from 16 scheduled banks and seven financial institutions. Out of 188 companies, a total of 78 companies of the group borrowed the money.
The information provided by different banks and finance companies indicates that there might be some 'shell companies' which were created only to collect public money as borrowers.
Janata Bank alone granted loans to 29 companies of Beximco Group, IFIC Bank granted loans to 29 companies, National Bank lent to 9 companies, Sonali Bank granted loans to 4 companies, Agrani Bank granted to 4 companies, AB Bank lent to 6 companies, Exim Bank to 5 companies, and other banks granted to more than one company belonging to Beximco.
Janata Bank alone granted loans to Beximco companies worth Tk 239.11 billion, IFIC Bank granted Tk 134.63 billion, National Bank granted Tk 31.82 billion, Sonali Bank granted Tk 16.76 billion, Agrani Bank granted Tk 10.09 billion, AB Bank granted 18.38 billion, Exim Bank granted Tk 14.68 billion, Rupali Bank granted Tk 9.65 billion, Dutch-Bangla Bank granted Tk 1.70 billion.
"The companies borrowing loans wanted to hide the actual beneficiary owners that may lead to money laundering and tax evasion in contravention of the prevailing laws of the country," says the report, adding that this practice of hiding the actual beneficiary owners might have accelerated the breach of single-borrower exposure limit.
The central bank has advised Sonali Bank, among others, to take departmental action against the employees involved in the irregularities of the loan affairs of the Beximco Group.
The banking regulator has asked for explanation from the Janata Bank management regarding non-repatriation of the export proceeds amounting Tk 58.27 billion and further informed the Bangladesh Financial Intelligence Unit (BFIU) to investigate whether the offence of money laundering has been committed.
Beximco Group exported products to RR Global Trading, UEA, which is a sister concern of the Beximco Group, and Bangladesh Bank apprehends that the overdue export proceeds have been laundered and may not be repatriated in the future as those are still left though the stipulated time provided by the guidelines of Foreign Exchange Regulation of Bangladesh Bank has been overlapped.
The BB report says currently the companies of Beximco Group are not in a position to pay salaries and wages that refers the inability of the group to repay the loan liabilities as well, and in such situation, the appointment of a receiver by the central bank by the order of the court is justified.
Beximco Pharmaceuticals Limited has 10 directors who are the common directors of the 60 other companies of the corporate.
"Although all banking and finance companies are under obligation to send the defaulters list to the CIB of Bangladesh Bank, some of the banks granted further loans to the companies of Beximco Group by hiding their classified status of previous loans and also haven't sent clear picture of the loan status of the said companies to the CIB."
Bangladesh Bank lawyer Barrister Munirujjaman placed the report before the High Court bench of Justice Farah Mahbub and Justice Debasish Roy Chowdhury during the hearing on a rule issued over Beximco Group.
Following a writ petition, another High Court bench on September 5 this year directed the Bangladesh Bank to appoint a receiver to manage all the companies of Beximco Group and attach all the property belonging to this group for a period of six months.
It also issued a rule upon the Bangladesh Bank to explain as to why it should not be directed to provide information regarding Beximco Pharmaceuticals Limited and all other business concerns of Beximco Group of Salman F Rahman, and how much unpaid loan he obtained from all financial institutions and the present status of loans and repayment.
Complying with the HC orders the central bank on November 10 this year appointed a receiver for the Beximco Group of companies.
Later, the apex court modified the HC orders and exempted only Beximco Pharmaceuticals Limited from appointment of a receiver on it and attachment of its property.
Masood R Sobhan, a Supreme Court lawyer, filed the writ petition, as public- interest litigation.
Appearing for the Beximco Group, Barrister Fida M Kamal sought time from the court for taking preparation to reply the BB report. The court granted him time and fixed January 22 next for further proceedings.
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