Travel ban imposed on 9 foreigners over ‘embezzling Tk 2.75b’

A Dhaka court has barred nine foreign nationals, including five founding directors of Ring Shine Textiles Limited, from leaving the country over allegations of embezzling Tk 2.75 billion.

They allegedly submitted falsified documents to list the Dhaka EPZ-based company on the capital market.

Dhaka Metropolitan Senior Special Judge Sabbir Faiz passed the order after hearing a petition by the Anti-Corruption Commission on Thursday.

Abdul Kader Faruk, identified in the Anti-Corruption Commission’s (ACC) petition as the chairman of FAR Group, has also been placed under a travel ban.

The five founding directors of Ring Shine Textiles are Additional Managing Director Sung Wen Li Angela, Chief Operating Officer Sung Wei Min, Sheao Yen Shin, Sung Chung Yao, and Sung Jye Min.

Four other foreign nationals, Xiao Liu Yi Chi, Chuk Quan, Hang Siu Lai, and Xiao Hai He, have also been placed under the travel ban.

ACC spokesperson and Deputy Director Akhtarul Islam confirmed the court order.

In its application, the ACC alleged that the textile company, established at the Dhaka EPZ by Faruk, had no working capital, yet was listed on the stock market using “falsified shareholders and forged documents”.

The petition claimed this allowed “financial fraud and embezzlement” of Tk 2.75 billion and said Faruk received a 40 to 60 percent share of the proceeds under an agreement with the company.

Investigators warned that the suspects may attempt to flee overseas, prompting the travel restrictions.

Ring Shine was listed in 2019, raising Tk 1.5 billion through an initial public offering (IPO).

Less than a year later, the company collapsed, and in September 2020, it reported a month-long factory shutdown.

The capital markets regulator Bangladesh Securities and Exchange Commission (SEC) later took action against those named in the fraud and embezzlement allegations.