The commission investigating activities of the multi-level marketing company Jubak in its report blamed ministers, parliament members and politicians for the increase in the number of such entities which are engaged in financial malpractice and cheating with people.
The commission, formed on May 4, 2011, submitted its report to the finance ministry in the last week.
In the report, the public officials were also blamed for showing lenient attitude towards the mushrooming of the cooperative societies and the multi-level marketing companies which were resorting to illegal banking and money laundering, said officials at the ministry.
Many people became paupers in the last one decade reportedly being cheated by such societies or companies including Juba Karmashangsthan Society (Jubak), Destiny 2000, Unipay2U Bangladesh, Unigateway2u Trading (Pvt) Limited, Uniroot Finance, Maa Policom Limited, Zen International, Rabon X, Low at Vision and Speak Asia Online Bangladesh Limited.
The commission suggested stern action against the Jubak executives as they swindled Tk 2588.11 crore and illegally invested the company fund in real estate business forming individual entities
According to the ministry officials, the report said that Jubak coordinator Nur Hossain Jewel coordinator established Victoria Housing.
Transparency International Bangladesh executive director Ifterkharuzzaman said he was not surprised at the findings of the commission.
He said that a former army chief was involved in the operation of Destiny 2000 and many influential politicians were reportedly involved in the financial scams by the Hallmark Group in the state-owned Sonali Bank.
Former adviser to the caretaker government Mirza Azizul Islam said that the recovery of the money and punishment for the company officials should be done simultaneously.
He lamented that the government could not recover a single penny swindled by the fictitious company.
Finance minister Abul Maal Abdul Muhith while commenting on the commission report said that there were many entities like Jubak which were causing problems.
Muhith suggested the bank and financial institute division of the ministry that they should arranged a discussion on the country’s existing laws on company, cooperative society and company registration to find out suitable recommendations to prevent the dishonest companies.
-With New Age input
