Court issues warrants in export proceeds fraud

A Dhaka court has issued arrest warrants against five individuals, including senior executives of logistics firms and foreign buyers, over allegations of embezzling export proceeds totalling US$331,096 from Bangladesh's garment sector.
The case highlights growing concerns over financial irregularities in international trade transactions.
Industry leaders warn that such incidents not only deprive exporters of legitimate earnings but also pose risks to the country's foreign exchange inflows, prompting calls for tighter regulatory oversight.
Senior Judicial Magistrate Md Tajul Islam Sohag of the Chief Metropolitan Magistrate (CMM) Court, Dhaka, passed the order on Wednesday after Alim Knit (BD) Ltd, a subsidiary of Mondol Knitwear Ltd, filed a criminal case.
The warrants were issued against Ahmed Musaddeq Sharif, Chief Executive Officer of On Time Worldwide Logistics Ltd; Dhanesh Kallapatha, Managing Director of Dart Global Logistics (Pvt) Ltd; and Jon Smith, Managing Director of German buyer Fashion Center GmbH.
Other accused include Oliver Sarrazin, Country Manager (Germany), and Stephan Gunner, Managing Director of Global Apparel GmbH.
According to the case documents, Alim Knit (BD) Ltd exported garments to Fashion Center GmbH through the accused freight forwarders.
The complainant alleged that the forwarders, in collusion with the buyer, released the goods in Germany without the required No Objection Certificate (NOC) from the exporter, thereby bypassing the payment process.
Despite multiple legal notices and a mediation attempt by the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on September 25, 2025, the accused failed to repatriate the outstanding amount of $331,096.
BKMEA had earlier directed the shipping agents to ensure immediate payment, but the instruction went unheeded.
The court found prima facie grounds for charges under Sections 406, 408, 420, 506 and 34 of the Penal Code, which cover criminal breach of trust, cheating and criminal intimidation.
The next hearing for execution of the warrants is scheduled for April 26, 2026.
Speaking to The Financial Express, BKMEA President Mohammad Hatem said that upon receiving the complaint, it was alleged that the forwarders, in collusion with the buyer, released the goods in Germany without the required NOC from the exporter, effectively bypassing the payment process. BKMEA notified all parties; however, none responded or attended the hearing at the association.

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