Forty companies in Dhaka and Chattogram, including controversial Crescent, Bismillah and Beximco groups, have not repatriated export proceeds amounting to $588 million by engaging in irregularities and manipulation over at least 10 years, according to two central bank reports that listed the top such companies.
Among the companies, the top 20 Dhaka-based companies have not brought in $559 million while the top 20 Chattogram-based firms have not repatriated approximately $30 million in export proceeds. In total, these 40 companies have yet to bring nearly Tk7,000 crore back to the country.
A senior official from the central bank told The Business Standard, “A year and a half ago, our overdue export proceeds exceeded $1.5 billion. As of Wednesday, this figure has come down to nearly $1 billion.”
Commenting that most of the 40 companies have not brought in these export proceeds for a long time, the official said, “Usually, export proceeds must be brought into the country within four months of export. If, for any reason, there is a delay in receiving the proceeds, it must be reported to the central bank. The central bank may extend the time if deemed necessary.”
He added, “However, among the listed companies, the proceeds from Bismillah and Beximco groups have been stuck for several years. Additionally, Crescent Group committed export document fraud, resulting in their proceeds not being repatriated for many years. The others have also not brought in the proceeds for long.”
There are, however, one or two companies whose proceeds have been overdue for less than a year, he said.
Among the companies in Dhaka, Rimex Footwear Limited, a subsidiary of Crescent Group, has failed to bring in the highest amount of $64.76 million. Crescent Group’s owner MA Quader and his brother Abdul Aziz, the head of Jaaz Multimedia, have been accused of embezzling over Tk5,000 crore from Janata Bank through irregularities and manipulation.
Besides, two other companies of the group, Crescent Leather Products and Rupali Composite Leatherware, have not repatriated $56.25 million and $51.71 million, respectively. In total, Crescent Group has not brought back more than $173 million or over Tk2,000 crore in export payments to the country.
On the other hand, Bismillah Group, which is accused of embezzling over Tk1,100 crore from five banks, including the state-owned Janata Bank, by creating fake export bills, has not repatriated nearly $124 million or Tk1,463 crore in export proceeds from four of its companies.
The group’s companies — Alppa Composite Towels, Bismillah Towels, Hindulwali Textile, and Sahabish Composite Towels — have not brought in $58.1 million, $41.45 million, $14.54 million, and $9.69 million in export proceeds, respectively.
Additionally, four companies of Beximco Group, which has leveraged political influence to obtain various benefits in the country’s financial sector, are also on the list of the top 20 Dhaka-based companies.
The group has failed to repatriate nearly $100 million in export proceeds. Among them, Bextex Garments has not brought in $24 million, International Knitwear & Apparels $25.18 million, Esses Fashion $24.45 million, and Apollo Apparels $23 million in export payments.
Salman F Rahman, former adviser for private industry and investment to the ousted prime minister Sheikh Hasina, is the vice-chairman of Beximco Group. Ahmed Sohail Fasihur Rahman, elder brother of Salman, is the chairman of this group.
When contacted, Abu Shafiullah, general manager of Beximco Group, told TBS, “Our group is very large. I am not fully aware of this issue.” He advised speaking with officials from the group’s finance department. However, by the time the report was written, no other officials from the company could be reached for comment.
Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, told TBS, “Typically, no exporter can hold onto their payments for a long time. If export proceeds are delayed for an extended period, it must be assumed that the money has been siphoned off.”
If a company is involved in such cases, it should not be entitled to many benefits, including bank loans, he said.
Akij Jute Mills, a subsidiary of Akij Group, has not repatriated $20.83 million in export proceeds to the country.
Besides, Lenny Fashion has not brought in $32.58 million, Sb Exim $31.65 million, Sq Celsius $27.28 million, Apollo Apparels $23 million, Kwun Tong Apparels $15.1 million, Kadena Sportswear $10 million, Redpoint Jackets $9.98 million, Paddock’s Jeans $9.24 million, and Sq Birichina $8.83 million in export proceeds to the country.
Among the top 20 business entities in Chattogram, Northpole BD has not repatriated $10.83 million, Norm Outfit and Accessories $3.34 million, Veltex International $2.83 million, Modiste (Cepz) $2.62 million, and SN Fashion $1.62 million in export proceeds to the country.
