Friday, April 4, 2025

Janata, Agrani too partners in crime

Hall-Mark Loan Scam
Janata, Agrani too partners in crime
Finds central bank inspection
State-run Janata Bank and Agrani Bank breached banking rules to provide loans to the textile company Hall-Mark Group in connivance with Sonali Bank, helping embezzle crores of depositors’ money, the central bank has found. Janata’s corporate branch located at Janata Bhaban and its local office in the city, the principal branch of Agrani Bank Ltd and the Sonali Bank Ruposhi Bangla Hotel branch worked in league with officials of Hall-Mark.
The findings came in a Bangladesh Bank inspection on foreign trade activities of the Janata corporate branch.
When accounts of the Anawara Mills and Max Spinning Mills were opened on June 8 last year the owner of Anawara Spinning Mills was identified in the papers as Md Jahangir Alam and the owner of Max Spinning Mills as Mir Zakaria.
In both cases, Tanvir Mahmud, managing director of Bobby Spinning Mills and also managing director of Hall-Mark Group, was the introducer.
Janata started purchasing bills of Anawara Mills on June 16, 2011, and of Max Spinning Millls on June 26, against letters of credit (LCs).
Hall-Mark Fashion Ltd and its interest-linked company opened local LCs with the Sonali Bank Ruposhi Bangla Hotel branch in favour of Anawara Spinning Mills and Max Spinning Mills to import yarn locally.
The Janata Bhaban corporate branch sent the bills to the Sonali Bank Ruposhi Bangla Hotel branch. When the Ruposhi Bangla branch gave the bill acceptance, the Janata Bhaban corporate branch bought the bills and the money was credited into the accounts of Anawara Spinning Mills and Max Spinning Mills. Clients involved here withdrew the most of the money.
The central bank found the branch purchased bills of Anawara Spinning Mills, worth Tk 37.60 crore and of Max Spinning Mills worth Tk 46.08 crore breaching credit rules as some of the bills of the two companies were overdue.
The branch did not inspect whether the two companies existed before providing such a huge amount of loan facilities. The branch also failed to provide any information on the companies’ machineries.
It seemed to the central bank inspection team that officials of Sonali Bank and Janata Bank and the two companies had worked in connivance and embezzled a huge amount of money by making up accommodation bills.
Actually, the money was embezzled by the textile company Hall-Mark Group.
The team held branch manager Abdus Salam Azad and general manager and foreign exchange in-charge SM Abu Hena Mostafa Kamal responsible for the financial irregularity.
The team said the Janata Bhaban corporate branch bought export bills acknowledged by the Sonali Bank Ruposhi Bangla Hotel branch without verifying the existence or production capacity of Anawara Spinning Mills and Max Spinning Mills.
It found that the loading point and delivery point of the products is the same. Through creation of accommodation bill the export was completed on paper without exchange of products.
The central bank carried out a special inspection on the activities of the principal branch of Agrani Bank Ltd. It found that the principal branch had abused its power and purchased local bills worth about Tk 156.04 crore of the companies such as BTL, Mahin Textile and Pinnacle Textile.
The branch bought 105 local bills worth Tk 108.45 crore of the three companies following the bills’ acknowledgement by the Sonali Bank Ruposhi Bangla Hotel branch to supply products to Hall-Mark Group, Paragon, Nakshi and some other companies. Of them, 45 bills worth Tk 42.18 crore have been overdue.
As the principal branch and the headquarters are located in the same building the branch always takes approval from the managing director in loan sanctioning. But such approval from the headquarters was not taken by the branch although the limit in buying local bills exceeds. These companies have been given opportunity repeatedly to create liability although these three companies have overdue bills.
Although the branch bought local bills worth a huge amount of money the branch authority could not provide any report to the inspection team to prove that the production capacity of the three companies has been verified, according to Bangladesh Bank’s probe reports.
It also found that Pinnacle Textile Ltd was registered on December 13, 2011 but the branch first started to buy bills of the company on January 19. The branch authority could not explain as to how the company could start production in such a short period after getting registration and deliver the products.
While inspecting the factories of the company in Gazipur, the central bank team did not find any spinning machine that could produce yarn from cotton. As a result, they did not come by any answer as to how yarn had been delivered without any yarn-producing machine.
Eight circular knitting machines, which can produce fabric from yarn, were found there but no production took place.
The team reached the conclusion that Sonali Bank Ruposhi Bangla Hotel branch, Agrani Bank principal branch and clients’ companies embezzled a huge amount of money by creating accommodation bills through illegal means.
The Sonali Bank Ruposhi Bangla Hotel branch acknowledged bills worth hundreds of crores of taka and the Agrani Bank principal branch created the opportunity to embezzle the money by purchasing the bills.
The central bank team said branch manager and general manager Mizanur Rahman Khan, deputy general manager (foreign exchange) Johorlal Roy, assistant general manager (foreign exchange) Md Abdul Aziz Dewan and SPO (manager-export) Habibur Rahman were responsible for the embezzlement of the bank money.
The central bank also conducted inspection of the Dhaka local office of Janata Bank Ltd.
It found that the branch did not include the required information in the “Know Your Customer” profile while opening a current account for Sohel Spinning Mills Ltd. The inspection found suspected transaction to the tune of a huge amount of cash being withdrawn through cheques on various occasions soon after depositing of the money of purchased bills in the accounts. Although this type of withdrawal requires STR, the branch did not do any STR, thus breaching anti-money laundering laws.
During account opening the company has been termed as yarn producer and exporter. But the required raw materials to produce yarn were not imported through the bank and only export bills were purchased. The branch did not collect any information whether the company had imported the required raw materials.
Normally, one bank issues letters of credit and another bank advises in case of imports and exports. But the Ruposhi Bangla branch worked as both issuing and advising bank in the case of buying a huge amount of export bills of Sohel Spinning Mills by the Janata Bank local office.

Courtesy of The Daily Star

Related News

Police clearance no longer required for passports

News Desk : dhakamirror.com Chief Adviser Professor Muhammad Yunus announced that police verification will no longer be necessary for obtaining a passport, thereby reducing unnecessary hassle for citizens. “Getting a passport is a basic right. We have established a rule that eliminates the need for police verification,” he stated. While speaking at the opening session ... Read more

Metro rail achieves record 4 lakh daily passengers

News Desk : dhakamirror.com Metro Rail has achieved a remarkable milestone by carrying over 400,000 passengers in a single day. The Dhaka Mass Transit Company Limited (DMTCL), which operates the Metro Rail, announced this achievement on their official Facebook page on Friday night. For the first time, Metro Rail recorded 403,164 passengers. The Metro Rail ... Read more

Most people, about 66% think civil servants behave as if they are rulers

News Desk : dhakamirror.com More than 100,000 participants have contributed their responses to reform commission’s online survey 80% of the respondents believe that the administration is not approachable for the general public, according to a survey conducted by the Public Administration Reform Commission. Additionally, 66% of participants feel that civil servants act as if they ... Read more

Former Justice Abdur Rouf dies

News Desk : dhakamirror.com Former Chief Election Commissioner Justice Md Abdur Rouf has passed away at the age of 91. He died around 10:00 am while receiving treatment at Insaf Barakah Kidney and General Hospital in Dhaka, as stated in a press release. Justice Rouf had been battling heart disease, lung complications, kidney issues, and ... Read more

Bangladesh climbed 4 positions to rank 93rd in global passport index

News Desk : dhakamirror.com Bangladesh has climbed four notches up in the latest Henley Passport Index 2025, ranking 93rd out of 99. However, the number of visa-free destinations for Bangladeshi passport holders has dropped from 42 in 2024 to 39 this year, reflecting a decline in global travel privileges. Despite this improvement in rank — ... Read more

BBS Findings show Madaripur most poverty-stricken district, Noakhali least

News Desk : dhakamirror.com Madaripur has the highest poverty rate in the country, with 54.4% of its population living below the upper poverty line. The district’s upazilas are also significantly affected by poverty, with Dasar upazila reporting a poverty rate of 63.2%, as per a survey conducted by the Bangladesh Bureau of Statistics (BBS). BBS ... Read more

Ekushey Padak: Women’s football team and 14 distinguished individuals set to receive award

News Desk : dhakamirror.com The government has put forward 14 distinguished individuals and the national women’s football team for the Ekushey Padak in 2025, honoring their remarkable contributions in their respective fields. The cultural affairs ministry announced this on Thursday. The nominees include Azizur Rahman (posthumously) for film, Ustad Nirad Baran Barua (posthumously) and Ferdous ... Read more

New counter-based bus services launch in Dhaka this Thursday

News Desk : dhakamirror.com A new bus service featuring ticket counters is set to launch in Dhaka on Thursday, February 6, with the goal of improving public transport, alleviating traffic congestion, and enhancing passenger safety. The service will officially kick off from Abdullahpur at 10:30 am. This initiative, led by the Dhaka Road Transport Owners ... Read more

Fog disrupts flight operations at Dhaka airport

News Desk : dhakamirror.com Six international flights were diverted to Sylhet and Kolkata airports today due to dense fog at Hazrat Shahjalal International Airport (HSIA). Of the six flights, Jazeera Airways was arriving from Kuwait, Salam Air from Muscat, two US-Bangla Airlines from Dubai, Qatar Airways from Doha, and a Biman Bangladesh Airlines flight from ... Read more

St Martins under travel restrictions for 9 months

News Desk : dhakamirror.com A nine-month restriction on tourist movements to St Martin’s Island, the only coral island in Bangladesh, will take effect on Saturday, February 1. Tourists can visit the island until Friday, January 31, as per a decision made by the environment, forest, and climate change ministry. Residents and tourism operators on the ... Read more

Seven Colleges Split from DU

News Desk : dhakamirror.com The administration of Dhaka University on Monday decided to separate the seven government colleges from their affiliation with the university. This decision was made during an emergency meeting between the vice-chancellor of Dhaka University and the principals of the affiliated government colleges on Monday in the vice-chancellor’s meeting room. Following the ... Read more

New trains launch on Ctg-Cox’s Bazar route February 1

News Desk : dhakamirror.com On 1 February, the Chattogram-Cox’s Bazar route will witness the launch of two new intercity trains, the Saikat Express and the Prabal Express. The announcement followed a directive from Bangladesh Railways, which called for the allocation of essential resources such as locomotives, coaches, and personnel. Both trains will feature a combined ... Read more

Uniform revamp for police, RAB, Ansar

News Desk : dhakamirror.com On Monday, the government announced the introduction of new uniforms for the police, the Rapid Action Battalion (RAB), and the Bangladesh Ansar and Village Defence Party. The police will don iron-colored uniforms, while the RAB will wear green olive, and the Ansar will sport golden wheat, as stated by home adviser ... Read more

SC acquits Khaleda, Tarique, others, labeling the case as an act of malicious prosecution

News Desk : dhakamirror.com The Appellate Division of the Supreme Court on Wednesday acquitted Bangladesh Nationalist Party chairperson Khaleda Zia, her son and the party acting chairman Tarique Rahman, and four others in the Shaheed Ziaur Rahman Orphanage Trust case, overturning the High Court’s decision that upheld their convictions. The court also declared the proceedings ... Read more

Bangladesh named The Economist’s country of the year

News Desk : dhakamirror.com The Economist, an influential British weekly magazine, has named Bangladesh the ‘Country of the Year’ for 2024, recognising the nation’s incredible political and social transformation. ‘The winner toppled a tyrant and seems headed for something better,’ the magazine said in its report published on Thursday. It said that the recognition was ... Read more

HC declares key provisions of 15th amendment partially unconstitutional

News Desk : dhakamirror.com The High Court on Tuesday declared several provisions of the Constitution, introduced through the contentious 15th amendment, partially unconstitutional, reinforcing the foundational principles of democracy, judicial independence, and the Constitution’s basic structure. The bench comprising Justice Farah Mahbub and Justice Debasish Roy Chowdhury delivered the verdict, addressing amendments that abolished the ... Read more

BIDS study shows 28.24% of graduates from National University unemployed

News Desk : dhakamirror.com A recent study conducted by the Bangladesh Institute of Development Studies reveals that 28.24% of graduates from colleges affiliated with the National University remain unemployed. Moreover, a majority of the ones who secure employment are primarily engaged in low-paying jobs, the study further revealed. The study titled, “Understanding unemployment among college ... Read more

Begum Rokeya Day observed with call for women’s equality

News Desk : dhakamirror.com Begum Rokeya Day was observed on Monday across the country with a call for ensuring equality of women in every sector. The country marks December 9 as Begum Rokeya Day commemorating birth and death anniversaries of Begum Rokeya Sakhawat Hossain on the same day. Begum Rokeya, considered as a pioneer of ... Read more

Saudi mega projects push demand for Bangladeshi workers as other markets shrink

Kamran Siddiqui Saudi Arabia hired 83,733 Bangladeshi workers last month, marking the highest number of overseas employment in a single country in 35 months, driven by ongoing mega projects which indicate a further boost in demand for Bangladeshi labour. While overseas employment in Saudi Arabia is surging, the demand for Bangladeshi workers in other labour ... Read more

Bangladesh’s civic space broadened: report

News Desk : dhakamirror.com Civic space condition improved in Bangladesh due to steps taken by the interim government, said the People Power Under Attack 2024 report. The CIVICUS Monitor, a research consortium led by global civil society alliance CIVICUS that track civic space, unveiled the new report on Wednesday, said a press release. Bangladesh stayed ... Read more