Tuesday, December 18, 2018 | ePaper

Leather sector and fraudulent export

  • Print
 SOME leather companies have already come under the spotlight in the recent months for their alleged banking fraudulence by exporting products to some shady companies in Hong Kong. Indications are that these firms were shell companies because they actually don't exist at their mentioned addresses and many of their directors are Bangladeshi citizens, as per a local daily report on Thursday.
The documents also cast doubts as to whether the exports had actually taken place. The whole scam was done in such a blatant way that even a novice could see the holes in Crescent's deals. Only Janata Bank did not. These firms obtained export LCs from an obscure African bank. The authenticity of the LCs has also been questioned by the BB investigators. The proceeds from the doubtful exports never came to Bangladesh, but Crescent, in collusion with the Janata Bank top officials, took out Tk 684 crore in advance against such exports from January 2017 to February this year, the investigators say.
This is yet another saga of blatant corruption in the banking system. Janata Bank's loan to Crescent Group exceeds 55 percent of its equity capital, when the Banking Act says a maximum of 25 percent can be given. Crescent Group's export bills were not realised yet the bank gave it further loans. Payments in excess of 60 lakhs were found to have been deposited in Janata bank branch manager's account.
In this way almost 1074 crore taka was siphoned off from the government's incentive fund by the Group-- a scam of almost colossal proportions. So in essence the Group took loans from the Bank, faked exports, and then laundered some of the money which it probably got as loans and payment of bills. These financial crimes existed before. The international companies would repatriate profits out of one country to another by showing increased purchase prices for its goods--but Crescent Group has twisted the game entirely to something more twisted.
The current over invoicing involving Crescent Group has overshadowed the earlier fraudulences by an order of magnitude and criminality. We do believe it could not be done without the help of bank. 

More News For this Category

Dried-fish sector needs govt support to expand export

THE dried-fish industry in southeastern district of Cox's Bazar and some other parts of the country is now thriving. Bangladesh earns foreign currency by exporting dried-fish to different countries, including

Dhaka must involve ASEAN nations for early Rohingya repatriation

MALAYSIAN Prime Minister Mahathir Mohamad on Sunday asked the ASEAN nations to take tough measures for creating pressure on Myanmar and its de facto leader Aung San Suu Kyi to

Climate change is a problem of politics, not science

Jiang Kejun and Valérie Masson-Delmotte :How will our children and grandchildren, looking back on this period in history, judge our response to climate change, the defining challenge of our time?

Funding, financing smart cities in developing economies

Kishore Rao, Michael Flynn :As is often cited, by 2030, 60 percent of the world will live in cities. The world's population is projected at 8.5 billion people by 2030

How much can the Gulf region rely on Washington?

Arnab Neil Sengupta :The concept of a Middle East Strategic Alliance being explored by the Trump administration, is fine in theory but whether it will work in practice is open

Readers’ Forum

Reviving the art of conversationWe are so busy with the daily grind that there is no time to talk even to family. Most of us may not remember the last

EC must act to ensure security to opposition men

THE New Nation on Saturday reported that at least 300 opposition men were arrested in a span of only 48 hours on Wednesday and Thursday across the country. The opposition

No room for self-satisfaction, success needed in other fields too

THE nation celebrates the 48th Victory Day today amid festivity. Today, the nation will remember its glorious historical achievement earned through a nine-month war against Pakistan Occupation Forces in 1971.

The unforgettable genocide of 1971

Lorraine Boissoneault:Blood wrote this dispatch two weeks into the bloody massacre that would lead to the birth of Bangladesh. Unlike the Rwandan genocide, or the Holocaust, or the killing that

The article that changed history

Mark Dummett :Abdul Bari had run out of luck. Like thousands of other people in East Bengal, he had made the mistake - the fatal mistake - of running within