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The Anti-Corruption Commission has uncovered evidence of embezzlement amounting to Tk 416 crore by Major (Rtd) MA Mannan, former chairman of the Bangladesh Industrial Finance Corporation Limited (BIFC), from the non-banking financial institution.
According to the ACC findings, MA Mannan misused his power as the chairman of BIFC and embezzled Tk 416 crore in the form of loans. Mannan, who also serves as the general secretary of Bikalpa Dhara Bangladesh, held the position of chairman at BIFC, while his wife, Umm Kulsum Mannan, occupied the same post. Additionally, his two daughters, Tanzila Mannan and Tajrina Mannan, served as directors at BIFC.
ACC files 10 cases over embezzling Tk 200cr
The ACC has already filed 10 graft cases against MA Mannan, his wife, and his two daughters between August 2019 and May 3 this year, accusing them of embezzling Tk 200 crore from BIFC. The former chairman, along with directors and officials colluding with him, distributed loans without proper security deposits and mortgages. These loans were obtained in the name of approximately two dozen paper-based institutions.
The accused individuals in the cases include MA Mannan, his wife and two daughters, former managing director Mahmud Malik and former assistant vice-president Ahmed Karim Chowdhury, director AMM Jahangir Alam, former deputy managing director Enamur Rahman, former senior vice president Syed Faqre Faisal, former senior officer Mohammad Nizam Uddin, Md Mostafizur Rahman, former officer Saikat Azad, Mannan’s brother-in-law Rois Uddin Ahmed, and many others.
Initially, the ACC filed two cases on August 8, 2019, against 12 people, including Mannan, for embezzling Tk 43.15 crore. One case was filed regarding the embezzlement of Tk 28 crore in the name of ‘Afroz Sweater Industries Limited,’ while the other case was related to the embezzlement of Tk 14 crore in the name of ‘Click to Design Limited.’ The ACC has already submitted charge sheets for these two cases, and investigations are underway for the remaining eight graft cases.
12 more graft cases under process
The ACC is currently in the process of filing 12 more cases against MA Mannan and others for embezzling approximately Tk 216 crore from BIFC through similar loans. The ACC findings reveal that 12 companies were involved in this embezzlement, including ‘Six Season Apartment’ (Tk 18 crore), M/s Textile International (Tk 37 crore), M/s Tower Builders (Tk 35 crore), Motor Trade Enterprise (Tk 15 crore), and East-Asia Enterprise (Tk 7.5 crore). Additionally, around Tk 100 crore was embezzled in the name of Sunman Spinning Mills Limited, Bilal D Mamun Traders, Transfo Limited, Techno WiFi Services, Chowdhury Apparels Limited, and Runa Properties Limited.
When approached for comment, ACC Secretary Md Mahbub Hossain informed The Business Post that the ACC has filed some cases related to loan irregularities at BIFC and intends to file additional cases based on the remaining allegations. “The number of cases is higher for loan irregularities at BIFC due to the larger number of loans,” he said.
ACC sources revealed that the involvement of BIFC chairman Major (Rtd) Abdul Mannan in the loan irregularities came to light when the Bangladesh Bank investigated large loan amounts obtained from BIFC.
In late 2015, the central bank notified the ACC and Criminal Investigation Department (CID) to take appropriate action. Subsequently, the ACC initiated an inquiry into the allegations of corruption in 2016.
The central bank’s investigation in 2015 found that 34 companies owned by the Sunman Group, which is owned by Mannan, had withdrawn Tk 703 crore from BIFC. Out of this amount, Tk 570 crore was directly obtained in the name of 27 institutions, while Tk 133 crore was secured by seven companies within the same group. The Bangladesh Bank’s investigation also uncovered cases where loan accounts were regularly presented as in good standing despite defaults, and several loan accounts were intentionally not reported to the Credit Information Bureau (CIB).
As a punitive measure after discovering the loan fraud, the central bank removed Major (Rtd) Abdul Mannan, his wife Umm Kulsum Mannan, and daughters Tanzila Mannan and Tajrina Mannan from their positions at BIFC.
Additionally, the central bank appointed an observer at BIFC and instructed the authorities of the non-bank financial institution to pursue legal action to recover the embezzled funds.
Later, Major (Rtd) Mannan promised to return Tk 200 crore of the embezzled money, but eventually, only Tk 120 crore was returned.
According to the ACC’s complaint, the embezzled amount by Mannan and his family members is estimated to be around Tk 518 crore.
However, ACC officials have currently found preliminary evidence of embezzlement amounting to Tk 416 crore against Major Mannan. The investigation is ongoing, and the amount may increase as more evidence is gathered, according to ACC officials.
