Northstone Engineering Ltd received registered with the Registrar of Joint Stock Firm in November 2019. Within 5 days it opened an account with IFIC Monetary institution’s Gulshan department and two days later, it received a Tk807 crore sub-contract for Dohazari-Cox’s Bazar rail line.
The next day it utilized for Tk400 crore in overdraft mortgage and received it sanctioned by the IFIC Monetary institution board in two weeks.
And in subsequent 12 working days, it withdrew the final quantity in money in opposition to an undated cheque and a portion of land in Narayanganj, whose mortgage deed modified into once no longer yet done.
From company registration to getting Tk400 crore mortgage in hand, it took one-and-half of months for Northstone with appropriate Tk10 lakh in paid-up capital.
This modified into once one of 14 corporations that enjoyed the private lender’s such generosity as they were granted loans totalling Tk7,129 crore from its fundamental and Gulshan and other branches between 2020 and 2023, per the central financial institution’s inspection experiences, obtained by The Industrial Celebrated.
After the meantime authorities took over on August 8, many such experiences retain surfacing as the authorities try to content the banking sector help now on target.
Relief Development modified into once yet any other company which received Tk435 crore overdraft mortgage in a identical haste. It opened an account with the financial institution’s fundamental department on the identical day it received a sub-contract for Khulna 200-300 MW twin-gasoline vitality plant on 12 December 2020 and received mortgage approval on 17 January 2021. It took a variety of the quantity in money, rather than pay divulge as per the agreed terms, in the next eight working days.
These two corporations obtained mortgage approvals with out precise verification by the financial institution’s board within a month of their registration as corporations, eminent a various inspection crew of the central financial institution’s Monetary Integrity and Customer Products and services Division in April 2023, questioning how corporations of Tk10 lakh paid-up capital each and each certified for Tk835 crore in loans.
One of the most corporations were luckier than others, with even quicker mortgage processing despite having no field of job at the given take care of — neglect about collateral, creditworthiness or trade viability tests. Bangladesh Monetary institution’s Division of Off-field Supervision noticed “big stress” from Salman F Rahman, the then-chairman of the IFIC Monetary institution board, and Shah Alam, the typical managing director (later adviser to the financial institution), on mortgage approvals for shell corporations with out due diligence.
Tk470cr mortgage for one-room firm
TBS visited no longer lower than four such addresses nevertheless failed to detect any firm’s field of job or executive.
This correspondent sought for Skymark Global at its registered take care of on the 3rd floor of Home 251, Block A, Bashundhara Residential Home.
In an unusually generous transfer, IFIC Monetary institution issued an overdraft mortgage of Tk145 crore to Skymark appropriate seven days after the corporate’s registration on 26 July 2022.
Resulting from this fact, the financial institution’s fundamental department increased the mortgage by an additional Tk400 crore, elevating the final to Tk545 crore for the corporate, which claimed to be all in favour of import-export, freight forwarding, and wholesale retailing.
The financial institution did no longer stable any collateral for this mortgage and granted a six-month deferral on the requirement for collateral.
But no such entity modified into once there at the given take care of the attach a brand contemporary multistoried constructing modified into once seen. Murad Ali, the constructing’s caretaker, talked about that all the apartments in the constructing were rented out to families, and he had never heard of Skymark or its listed owners.
The company listed Abdullah Al-Manjour as the managing director and Ishrat Jahan Laizu as the director, with both showing a shareholding of Tk5 lakh each and each.
The financial institution’s generosity prolonged additional
Vista Global, a company working from an field of job with a monthly rent of appropriate Tk5,000, furnished with handiest two chairs and a runt desk, managed to stable a mortgage of Tk470 crore from the identical department of the financial institution.
When TBS visited the take care of listed with the Registrar of Joint Stock Firms and Firms (RJSC) at 796 Haji Tower, West Kazipara, Mirpur, the constructing proprietor published that the corporate had claimed it would supply recordsdata superhighway services for the sphere from the sphere of job.
On the opposite hand, when registering with the RJSC on 15 September 2022, the corporate talked about that it modified into once all in favour of import, export trade, and distribution.
When an on-field inspection modified into once performed at the registered take care of of Vista Global in Kazipara, no signal for the corporate modified into once came upon.
This correspondent met the constructing proprietor, Mazharul Islam, on the fourth floor. He explained, “About a year ago, they (Vista Global) rented a runt room in my constructing for Tk5,000. They talked about they would prepare recordsdata superhighway services for the Kazipara field from this field of job.”
Mazharul Islam added, “They rented the sphere of job for seven or eight months. Inner, there had been appropriate two chairs and a runt desk. Over these months, the room modified into once opened about 14 times, with handiest a few different folks coming in and out. Fair earlier than the July protests, they shut the sphere of job down and left.”
Mazharul Islam also talked about, “Some financial institution representatives fair no longer too lengthy ago came here asking about them. I plan they might per chance per chance presumably per chance occupy taken a mortgage of Tk1-2 crore. But now I hear it be Tk470 crore! Right here is why our country is in this negate – because of fraudsters esteem them.”
Vista Global confirmed Mohammad Jahangir Alam, from Mukim Bazar, Bangshal Road, as the managing director, whereas Bibi Morium Misty, from BRAC Market, Azampur, as a director.
In an identical diagram, Soft Development & Engineering Small, which also obtained loans from IFIC Monetary institution’s fundamental department, modified into once registered with the RJSC on 12 December 2022.
The company is listed as being all in favour of constructing, engineering, and real estate. Currently, it owes Tk620 crore to the financial institution. The registered take care of is 129 Inexperienced Landmark Tower, Lake Circus, Kalabagan.
An on-field inspection came upon a multi-account constructing advance Kalabagan-Fresh Market Road. The constructing’s safety guard Mohammad Mia and supervisor Rakib confirmed that no company by the establish of Soft Development & Engineering Small operated there.
After checking each and each floor of the constructing, it modified into once sure that no such company existed. One other constructing company modified into once novel in the constructing, nevertheless they’d never heard of Soft Development & Engineering Small.
Alpha Enterprise Small secured a mortgage of Tk425 crore from IFIC Monetary institution. The company modified into once registered on 7 June 2022. Fair 13 days after its registration, it bought a mortgage of Tk85 crore from the financial institution.
The company’s registered take care of is Wapda Road, Rampura, Dhaka, nevertheless no physical presence is at possibility of be came upon at some stage in an on-field seek recommendation from.
An reliable from the RJSC informed TBS, “Somebody can register a company by paying the specified expenses and submitting the considerable paperwork. We receive no longer behavior on-field tests to advise if the corporate in actual fact exists. That’s no longer within our authority.”
Sanctioning loans: IFIC style
The central financial institution experiences computer screen several irregularities in the mortgage issuance course of, at the side of granting loans to shell corporations field up to embezzle mountainous sums of money. These corporations bypassed considerable mortgage rules, reminiscent of tests on field, equipment, activities, inventory experiences, collateral, and workers.
Additionally, there had been no prior transactions of their mortgage accounts, and the mortgage limits were prolonged with out precise prognosis.
Salman F Rahman had served as the chairman of IFIC Monetary institution since 2015, whereas his son, Ahmed Shayan Fazlur Rahman, held the placement of vice president.
The authorities owns a 32.75% portion in IFIC Monetary institution, whereas Salman F Rahman and his son collectively held a 4.11% stake in the financial institution.
Following the fall of the Awami League authorities on 5 August, the Bangladesh Monetary institution dissolved the IFIC Monetary institution Board of Administrators and fashioned a brand contemporary board in early September. As a outcome, Salman has misplaced administration of the financial institution. He’s at novel in prison facing charges, at the side of allegations of money laundering.
Utterly different corporations implicated in identical faux mortgage activities at IFIC Monetary institution, as highlighted in Bangladesh Monetary institution experiences, embody Soft Development & Engineering Small, which secured Tk620 crore, and Everest Enterprise, which obtained Tk550 crore in loans from the fundamental department.
From the Gulshan department, Blue Moon Trading bought Tk600 crore, and Axis Industrial Small obtained Tk582 crore.
Additionally, Northstone Engineering and Development Small took Tk438 crore, Relief Development and Engineering Small secured Tk444 crore, and Cosmos Commodities Small obtained Tk612 crore.
A ways East Industrial modified into once granted Tk614 crore, Sunstar Industrial Tk615 crore, Brightstar Industrial Small Tk165 crore, Eltron Trading Small Tk449 crore, and Alpha Enterprise Small Tk425 crore.
Based entirely on the Bangladesh Monetary institution’s file, IFIC Monetary institution’s Gulshan department popular a Tk600 crore term overdraft mortgage for Blue Moon Trading Small, primarily primarily primarily based on a piece divulge value Tk1,267 crore.
The financial institution popular a six-month deferral to mortgage 8.5 acres of land in the Dhonua Mouza field of Bhaluka upazila, Mymensingh, valued at Tk25.5 crore, as collateral for the mortgage.
Despite unsatisfactory financial statements, reimbursement capability, and financial indicators, IFIC Monetary institution popular the mortgage with out thoroughly verifying the accuracy of the corporate’s financial runt print.
The central financial institution file finds that Cosmos Commodities Small, FarEast Industrial Small, and Sunstar Industrial Small together secured a total mortgage quantity of Tk1,841 crore from IFIC Monetary institution.
All of the corporations were registered in June 2022 and supplied third-birthday party-owned properties in Gazipur Sadar and Sripur as collateral for the mortgage. On the opposite hand, these mortgage procedures occupy no longer been performed up to now, the experiences mumble.
The trade addresses supplied for these three corporations were listed as the RS Building in Motijheel.
IFIC’s statement on the loans
At the time of distributing loans to 6 faux corporations, the executive supervisor of IFIC Monetary institution’s fundamental department modified into once Hossain Shah Ali, who silent holds the identical location at the department.
All the diagram in which thru the initial mortgage distribution, Syed Mansur Mustafa modified into once the deputy managing director and chief credit ranking officer. In the 2nd spherical of loans to these corporations, he modified into once serving as the managing director. Despite adjustments to the financial institution’s board on 5 August, he remains the managing director.
When the TBS correspondent visited the financial institution to quiz about these loans, he modified into once unable to fulfill with the managing director or the supervisor of the fundamental department.
Md Rafiqul Islam, deputy managing director and chief of department trade, IFIC Monetary institution, who spoke on behalf of the financial institution, informed TBS, “Bangladesh Monetary institution is investigating the discipline and must always behavior additional inspections. They’ve already taken recordsdata from us. We cannot divulge who bought the loans except the investigation is complete.”
He added, “The other folks who popular these loans are silent working in the related departments. If the central financial institution’s file recommends that they be eliminated, they’ll undoubtedly be disregarded.”
Rafiqul Islam also talked about, “The loans occupy already been disbursed, and the investigation is ongoing. I cannot advise whether Salman F Rahman modified into once all in favour of these loans.”
