Home ›› 21 Mar 2023 ›› Front
MetroNet Bangladesh Ltd (MNBL), one of the largest broadband internet service providers in Bangladesh, is on the verge of collapse due to an internal conflict among the owners, and the debacle is jeopardising the jobs of nearly 400 employees.
Two factions in the company are now locked into a bitter legal battle, which led to a freeze in the firm’s bank accounts. A segment of the owners has already formed a new management, rejecting the incumbent managing director.
Insiders say the MNBL is owned by Rahimafrooz Bangladesh Ltd (RABL), Flora Telecom Ltd (FTL), Ferdous Azam Khan and Syed Almas Kabir. Among them, RABL is holding 51 per cent of the firm’s shares.
The both factions are accusing each other of illegally embezzling crores of taka out of company funds, launching attacks at MetroNet office using local goons, and interfering in office activities, source in the company told The Business Post.
MetroNet supports a number of crucial and emergency services for public and private entities across Bangladesh, such as 999 hotline, ATM booths, mobile financial services (MFS), the Chittagong Stock Exchange, NID database, and e-passport.
If the firm goes under, these key services may face severe and prolonged disruptions. The information technology and telecommunication services company was established in 2001, and currently has around 8,000 clients.
According to the company website, MetroNet is a pioneer in offering network communication services to enterprises, multinationals, financial institutes, telcos, wholesale businesses, government agencies, medical institutes, and education sectors.
The firm’s vast and constantly growing footprint spans in 63 districts, maintaining more than 3,000 seamless, high-quality connectivity from 115 Points of Presence (POPs) across the country.
What is the issue?
One of the MetroNet owners Syed Almas Kabir told The Business Post, “The power struggle intensified last year when Rahimafrooz announced to sell its shares. Later, other shareholders also wanted to sell their shares to me willingly.
“We had signed a separate agreement with all in this regard. I was under a deadline to buy all shares, but could not meet the time limit because I was unable to borrow money from banks due to the ongoing USD shortage and other complications. So, the other shareholders remained in the company.”
Almas is the incumbent president of Bangladesh-Malaysia Chamber of Commerce and Industry (BMCCI), and also a former president of Bangladesh Association of Software and Information Services (BASIS).
Dismissing all allegations of irregularities brought against him, Almas said, “I have been serving this firm for more than 15 years as managing director. This is not an illegal occupation. Rahimafrooz still holds most of the firm’s shares. Why would we occupy the company?
“Our opposition in the company is behind the untoward incidents taking place in our offices. But they are accusing us. Disobeying a court injunction, Mustafa Rafiqul Islam is claiming to be the firm’s managing director. And they are trying to take over MetroNet by force.”
Almas further said, “A faction backed by Flora Telecom Ltd (FTL) and Ferdous Azam Khan had submitted incomplete paperwork to the Registrar of Joint Stock Companies & Firms (RJSC), as they deliberately did not submit Rahimafrooz’s documents.
“The group is also behind an attack on MetroNet’s office in the capital, carried out by miscreants in the first week of March.”
He continued, “They violated a court injunction, and defamed me. They want to take over MetroNet by force. They embezzled around Tk 9 crore in phases. The police had called them to mediate a solution, we were present there, but they had sent representatives in their place.
“MetroNet has no bank loans now. Proceedings of a case filed by Rahimafrooz are now underway. If there is no peaceful solution, 400 employees will lose their jobs. Many of our employees now fear for their safety and security.”
Almas then said, “If our company shuts down, our clients will switch to another firm as there are a number of large firms similar to us in the country. But the transition may not go smoothly.
“I don’t want conflict, I want a peaceful solution. I will discuss this matter with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and other government agencies to resolve the ongoing issues in MetroNet.”
What’s the other faction story?
In a recent press conference, Flora Telecom Ltd Managing Director Mustafa Rafiqul Islam and MNBL founder Ferdous Azam Khan said Syed Almas Kabir, who has been serving the MetroNet as managing director since 2006, was removed from his position in January.
The decision was made because he was absent in board meetings, and was involved in activities damaging to the company, they claimed.
Mustafa further said, “Syed Almas Kabir and Rahimafrooz embezzled around Tk 11 crore. Of this sum, Tk 3 crore was withdrawn in FY21, and around Tk 8 crore in the name of share purchase during FY23.
“Almas has only 2 per cent share in the company, but he had been running it with Rahimafrooz’s support because the conglomerate holds 51 per cent of the shares. The FTL holds the rest.”
“Almas illegally asked banks to stop transactions from the company’s accounts last December. He also changed passwords for emails, servers and other services, and collected bills from the clients illegally,” he alleged.
A number of MetroNet employees told The Business Post that the two warring factions pay staff salaries separately, and there is a serious doubt in the firm surrounding the payment of salaries and Eid bonuses in the coming days.
