The Anti-Corruption Commission (ACC) has launched an investigation against British American Tobacco Bangladesh (BATB) for allegedly using fraud and political influence to control the ownership of two factories in Dhaka and Chittagong, despite the company being supposed to be state-owned after independence. At the same time, serious allegations have been made against the company for smuggling about 20 to 30 billion US dollars (more than 2.5 lakh crore taka in Bangladeshi currency) abroad in the last 55 years.
According to ACC Deputy Director Akhtarul Islam on Saturday (May 23), a preliminary investigation has been launched based on specific allegations received and necessary documents have been summoned.
Embezzlement and forgery of abandoned property:
According to the charge sheet submitted to the DA, after setting up the first factory in Karachi in 1947, Pakistan Tobacco Company set up two factories in Chittagong in 1949 and Dhaka in 1965. After the independence of Bangladesh in 1971, according to the then law, these two factories were supposed to go to the ownership of the Bangladesh government as abandoned property.
Even in the annual reports from 1972 to 1974, Pakistan Tobacco Company officially admitted the loss of these two factories in Bangladesh and in return took advantage of large tax exemptions and compensation from the Pakistan government.
However, later, a finance manager of the then Pakistan Tobacco Company prepared fake and forged documents with the help of some influential ministers, businessmen and government officials of Bangladesh. By applying political and administrative pressure, the Directorate of Joint Stock Companies and Firms (RJSC) was forced to show the company as a registered company in Bangladesh. Through this, the entire ownership structure, including the valuable factories in Dhaka and Chittagong, was maintained under the control of British American Tobacco.
Allegations of laundering $25 to $30 billion:
The complaint claims that the company has illegally held ownership and laundered about $20 to $30 billion in foreign currency from Bangladesh over the past 55 years. According to the law, this huge amount of money and the factory’s profits were supposed to be deposited in the state treasury. The incident has been described in the charge sheet as one of the biggest financial scams and money laundering in the history of Bangladesh.
RJSC documents subpoenaed, international assistance sought:
As part of the investigation, the ACC has subpoenaed all documents related to the registration of Bangladesh Tobacco Company Limited, Pakistan Tobacco Company Limited, and British American Tobacco Bangladesh Company.
These documents include:
Memorandum and Articles of Association,
Information on the basic ownership structure and registered office,
Factory list and Certificate of Incorporation,
Authorized and paid-up capital, number of shares and information related to the Board of Directors.
The Directorate of Joint Stock Companies and Firms (RJSC) has been directed to submit these authenticated documents to the ACC investigation officer by June 15.
In addition, it has been decided to collect the annual reports of Karachi-based Pakistan Tobacco Company from 1972 to 1975 to verify the veracity of the allegations. For this, the process of seeking diplomatic assistance through the Bangladesh Embassy in Islamabad and the Bangladesh Consulate in Karachi is underway.
Tax evasion and concealment through influence:
The complaint further mentions that for three decades, senior government officials and secretaries have been included or nominated in the company’s board of directors to conceal issues such as tax and value-added tax (VAT) evasion. In addition, the allegation of silencing various political figures by giving them lucrative agency business opportunities has also been brought under the ACC’s investigation.
BAT’s statement:
When asked about the allegations of massive corruption and money laundering, British American Tobacco Bangladesh (BATB) said that they are investigating the entire matter and will clarify the company’s position through an official statement very soon.