ACC to file case against Salman F Rahman, 21 others over Tk 360 billion embezzlement from banks, capital market
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The Anti-Corruption Commission (ACC) has approved the filing of a case against Salman F Rahman, former private industry and investment adviser to the prime minister and chairman of Beximco Group, along with 21 others, over allegations of massive loan fraud, money laundering and stock market manipulation involving around Tk 360 billion, primarily linked to Janata Bank PLC.
According to ACC sources, the case will be filed under multiple sections of the Penal Code, the Prevention of Corruption Act, 1947, and the Money Laundering Prevention Act, 2012 (amended in 2015).
The investigation was conducted by a five-member ACC team led by Muhammad Zainal Abedin, Deputy Director (Special Inquiry and Investigation-1) at ACC headquarters.
The inquiry, conducted under file number 00.01.0000.001.01.025.24, was disclosed during an ACC press briefing.
The ACC alleged that the accused abused their power and colluded to defraud Janata Bank PLC’s local office in Dhaka by approving and disbursing large loan facilities, including Export Development Fund (EDF) loans, in favour of a newly formed company, Cozy Apparels Limited.
According to the ACC, Cozy Apparels Limited was a newly established entity whose directors had no prior business experience. Despite this, the company received substantial loans 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. As a result, export proceeds worth US$19.64 million were allegedly not repatriated.
In total, the accused allegedly embezzled US$1.46 billion, which, based on the average 2022 exchange rate, amounts to approximately Tk 136.67 billion. The ACC said 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, allegedly causing losses of thousands of crores of taka to shareholders.
The commission further 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.
The ACC has approved the filing of one case against the 22 accused under Sections 409, 420, 467, 468, 471, 477A and 109 of the Penal Code, along with Section 5(2) of the Prevention of Corruption Act, 1947, and Section 4 of the Money Laundering Prevention Act, 2012.
ACC officials said the case will be formally filed with the concerned court soon, and further legal action may follow based on the findings of ongoing investigations.