ACC to sue Salman, Obaidul Karim over embezzlements

FE REPORT
The Anti-Corruption Commission (ACC) has decided to file two cases, one against Salman F Rahman and another against Mohammad Obaidul Karim and others, for embezzlement. Both cases were approved on Thursday.
In the case against Mr. Rahman, the former private industry and investment adviser to the prime minister and chairman of Beximco Group, along with 21 others, is facing allegations of massive loan fraud, money laundering, and stock market manipulation involving around Tk 360 billion, primarily linked to Janata Bank PLC.
Another case will be filed against Orion Group Chairman Mohammad Obaidul Karim and 12 others from his family and Mercantile Bank PLC over allegations of loan irregularities, abuse of power, and embezzlement involving Tk 5.07 billion.
In the case against SF Rahman, the ACC alleged that the accused abused power and colluded with each other to defraud
Janata Bank PLC, Local Office, Dhaka, by approving and disbursing large loan facilities, including Export Development Fund (EDF) loans, in favor of a newly formed company named Cozy Apparels Limited.
According to the ACC, Cozy Apparels Limited was a newly created entity, whose directors had no prior experience in business operations. Despite this, the company was granted substantial loan facilities through undue influence and manipulation.
The investigation found that the accused showed fake import-export transactions among themselves using back-to-back letters of credit (BB LCs) and created accommodation bills to siphon off funds. Through this method, export proceeds worth US$19.64 million were allegedly not repatriated. In total, the accused allegedly embezzled $1.46 billion, which, based on the average 2022 exchange rate, amounts to approximately Tk 136.67 billion.
The ACC stated that the funds were subsequently transferred, converted, and layered through multiple channels to conceal their origin. In addition to the Janata Bank-related fraud, the ACC accused Salman F Rahman and others of stock market manipulation, including placement share manipulation and fraud, which allegedly caused thousands of crores of taka in losses to shareholders.
The commission also alleged that, using illegal influence, the accused obtained nearly Tk 360 billion in loans from various state-owned and private banks, misappropriated the funds, and laundered thousands of crores of taka abroad.
In the cases against Karim, according to the ACC, the accused, in collusion with each other, provided loans without adequate collateral, illegally converted offshore foreign currency loans into domestic currency loans, created fresh loans to adjust classified liabilities, and rescheduled loans without proper down payments, causing financial losses of Tk 5.07 billion. The commission said the accused abused their positions to grant unwarranted loan facilities and extended repayment periods by seven years, providing undue benefits to the borrower in violation of banking laws and regulations.
The cases will be filed with the concerned court shortly, ACC officials said.
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