Dhaka, July 28, 2626, reported that about Rs 8,500 crore ($66 crore) of export earnings had arrived in the country, but it was not credited to the foreign currency or foreign currency (FC) account.
“Forced Loan” (credit with the consent of the customer) has been made against the same transaction. Four top regulatory bodies are jointly investigating the unprecedented financial irregularities and frauds that have been around nearly two decades of transactions of the share market-listed company Kya Cosmetics Limited.
According to the sources, Bangladesh Bank, Anti-Corruption Commission (ACC), Financial Reporting Council (FRC) and Bangladesh Securities and Exchange Commission (BSEC) are jointly investigating the incident. According to financial sector experts, the incident has put the country’s export earnings management, banking accounts, foreign exchange control and reliability of financial reports in extreme questions.
The role and grievances of the four banks:
Kaya Group has exported more than four hundred back-to-back LCs, but the four banks have been accused of not depositing money. The details of the money that have been released through four banks:
Southeast Bank: $39.46 million
Pubali Bank: $20.19 million
National Bank: $5.85 million
Standard Bank: $65 million
The most surprising thing is that the central bank’s dashboard contains information about the foreign exchange coming to the country and four banks have given the ‘Prside Releasing Certificate’ (PRC) to KIA Cosmetics. However, the forced loan was created without showing the money to the customer’s FC account, which was later converted into a long-term ‘term loan’. According to the KIA Group, due to the irregularities of the banks, they have been stopped by making loans of around Rs 2,700 crore and the active business and import-export activities.
Asked about the whereabouts of the banks, Southeast Bank denied the allegations and said they were waiting for the BSEC audit report. Standard Bank claimed it “inaccurate information” and Pubali and National Bank declined to comment.
‘Unlawful Double Debiting’:
“I have been re-educated $1,000 million in exports,” said Abdul Khalek Pathan, chairman of Kaya Group. The bank has already deducted $400 million documents (FDBP) from the account. Although the remaining $600 million was supposed to be in my FC account, the bank has strangely re-debited $400 million from there. Due to this illegal ‘double debiting’ and forced forced loan, our import payments have been blocked and the whole business is being destroyed.”
He also alleged that the central bank’s ‘Guideline for Foreign Exchange Transaction 2009’ has created extreme mismatch as the central bank, NBR and bank, which is also having a negative impact on the national reserves.
The Anti-Corruption Commission (ACC) is looking for answers to three questions:
1. Whether the export earnings have come to the country properly.
2. Why the Forced Loan remained suspended even after showing the LC collection or ‘realized’ on the central bank’s dashboard.
3. Whether there is money laundering or bank fraud in the whole process.
Meanwhile, the ACC has sent a letter to the chairman of the KIA Cosmetics asking for documents and explanations from the Foreign Exchange Operations Department of Southeast Bank and Bangladesh Bank.
On the other hand, the FRC found that there are huge inconsistencies between the central bank’s dashboard, the bank’s loan record, and the company’s financial statements. Chairman of the FRC, Dr. Mo. Sajjad Hossain said the Bangladesh Bank and BSEC have been given necessary instructions after analyzing the documents for a neutral investigation. BSEC’s listed audit firm ‘PKF Aziz Halim Kabir Chowdhury Chartered Accountants’ is currently conducting special audits and review activities.
There is no way to avoid responsibility:
Bangladesh Bank Bangladesh Bank spokesperson Arif Hossain Khan said in a strong message that it is a big crime not to come to the country or irregularities in the system. Twenty years ago, the culprits will face punishment under the banking law. He assured that the ACC and the finance ministry have been asked for extra time to complete the investigation.