No headway in returning money to cheated youths

No tangible progress has yet been made in paying back funds worth billions of taka to hundreds of thousands of youths who were cheated by Jubo Karmasangsthan Society (Jubok), now infamous multi-level marketing (MLM) company.
"Except exchanging letters between the relevant ministries and divisions, no notable progress is visible in paying back money to 0.3 million youths who have been waiting for years to get back their hard-earned money," said a senior official working at the Ministry of Commerce (MoC).    
The Ministry of Finance (MoF) late last month forwarded the report of the 'Jubok Commission' to the MoC, two years after its submission, to take necessary actions.
Now the MoC has been asked to coordinate the affairs as a lead ministry and take steps to take control over assets of Jubok.
"The Ministry of Law has opined that the finance ministry can't be the lead ministry in this case rather it suggested transforming over the responsibility onto the MoC. We did it accordingly," said Dr Aslam Alam, Secretary of Banks and Financial Institutions Division (BFID) under the MoF.
He said the MoC has already completed some paperwork, formed a committee and held several meetings.
Asked about taking two years for sending the commission's report to the MoC, Mr Alam said the allegation is not correct. "So far I can remember the excerpts and recommendations of the report were sent to the MoC within seven months of submission."
"Before sending it, we thoroughly reviewed the report to take decisions about what can be done. We sent to the Ministry of Home Affairs a list of people who were involved in collecting money from youths for filing cases," he said, adding, "We also requested the Anti-Corruption Commission to investigate allegations brought against some people involved. Besides, we asked the deputy commissioners to confiscate the assets of Jubok."
Asked whether the process could have been completed swiftly as Jubok's operation has been suspended for nearly 10 years, Mr Alam answered in the negative and said there was lack of clarity in laws and acts concerned which was responsible for the delay.
"We are now amending the Finance Company Act under which clear directives will be there to take actions against illegal transaction of money. We will also be able to take legal steps under the act."
However, another BFID official said the government first tried to take steps on Jubok affairs through the Ministry of Social Welfare (MoSW). He said the government later found that it cannot appoint an administrator under Societies Registration Act.  
He said since taking appropriate actions are not possible through the MoSW, the affairs are now handed over to the MoC.  "That's why it took nearly two years to send the Commission's report to the MoC officially," he said.
When contacted, an official of the MoC said the ministry recently asked the MoF to inform it what steps had been taken so far regarding Jubok affairs, to avoid repetition of actions.
"We are in dilemma to decide whether to appoint an administrator first or to cancel the registration of the cooperative society," said the official.
He said it will take time to appoint an administrator since it needs amendment to the law concerned.
But he said the cheated members of the cooperative society can appeal to the court for appointment of an administrator for security of the assets of the organisation, which is under consideration.
He opined that the government has options to appoint administrator under the Bangladesh (Taking over Control and Management of Industrial and Commercial Concerns) Order, 1972, Bangladesh Abandoned Property (Control, Management and Disposal) Order, 1972 and Bangladesh (Administration of Financial Institutions) Order, 1972.
The official said the MoC will now go ahead with Jubok affairs after taking opinion from the Ministry of Law so that the assets of the cooperative can be taken under government's control.
Earlier, a committee led by Abdul Mannan, a joint secretary of the MoC, had suggested forming a commission headed by a retired judge or a secretary level official to take legal actions against organisations like Jubok and others which were involved in cheating people.
It also suggested that this commission should be a statutory body like the Law Commission and Information Commission. The committee was formed to find ways to protect the assets of Jubok in interest of investors.
It was also entrusted with the responsibility of examining the legal aspects of appointing an administrator to protect the assets of Jubok and paying back funds to investors in accordance with the recommendations made by a government-sponsored commission.
Sources said the government wants to repay the deposited money to the members of Jubok by selling its assets worth Tk 25 billion.
In May 2013, the Jubok Commission, headed by former bureaucrat Rafiqul Islam, submitted a report to the MoF suggesting appointment of an administrator for better management of its assets. Earlier, the government had formed another commission headed by former governor of Bangladesh Bank Mohammad Farashuddin.
The government suspended operations of Jubok in 2006 on allegation of carrying out banking activities illegally by taking deposit from its members.
The MLM company made investment in the fields of banking, housing, telecommunications, real estate development, tourism, health, agriculture, education and media.
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