Bank accounts frozen, family ties under scanner

FE REPORT | Published: July 14, 2024 23:49:25

The central bank has frozen bank accounts of SK Trims on recommendation of the Anti-Corruption Commission (ACC) as part of an investigation into illegal means of wealth accumulation by former revenue official Md Matiur Rahman.
Officials of SK Trims said they received a letter from the Bangladesh Bank on Thursday and bank accounts were frozen on Sunday. The stock exchanges also apprised investors of the regulatory decision.
Matiur, however, has never had any stake in the company in his name, according to the pre-IPO prospectus and the FY23 financial statement of SK Trims and Industries Limited.
His second wife Shammi Akhter Shibly, daughter, two brothers, and a sister had held a 55.42 per cent stake together in the company before it became public in 2018. Global Max Packaging Industries and Global Shoes, where Matiur's family members reportedly had major stakes, had another 19.28 per cent and 7.12 per cent shares in SK Trims at the time.
The much talked-about revenue official breached several legal provisions in his efforts to create wealth while serving the government, and he unknowingly admitted committing the offences in a TV broadcast. He had purchased placement shares, provided listed and non-listed companies with consultancy services and traded in the shares of some listed companies about which he had possessed undisclosed information.
Following the controversy, he was attached to the finance ministry.
SK Trims in its financial statements for FY23 shows that Matiur's wife, sister, daughter, and one of the brothers no longer had any holdings in the company.
That means they either offloaded their shares or transferred shares to accounts registered in different names.
Meanwhile, the BB sent a letter to the securities regulator, saying transactions of shares of Matiur's family members of SK Trims would remain suspended until the court or the authorities concerned removes the restriction.
Other investors will be able to trade in shares of SK Trims.
A senior official of the Chittagong bourse said they were trying to find out Matiur's links to SK Trims on receiving the letter.
A.G.M Sattique Ahmed Shah, acting managing director of the Dhaka bourse, said he was not aware of the BB letter.
"Our officials concerned might have got the letter and we will take measures in line with the instruction," he said.
Following the BB directive, all bank accounts meant to facilitate exports, imports, daily transactions, and dividend distributions by SK Trims will remain frozen.
Company secretary Md. Reaz Haider said exports and imports would be hampered if the accounts remained inoperable for a long time. The packaging company will go to the upper court, seeking an order for the withdrawal of the embargo, he added.
Before going public, SK Trims reported a profit of Tk 16 million for FY15, Tk 41 million for FY16, and Tk 53 million for FY17.
After the listing, the company secured a 108 per cent year-on-year increase in profit to Tk 194 million in FY19.
The earnings gradually declined over the next three fiscal years and stood at Tk 76 million in FY22. The company seems to have bounced back with a 32.5 per cent year-on-year growth in income to Tk 106 million in FY24.