Wednesday, February 20, 2019 | 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

Unwanted delay in relocating chemical warehouses from Dhaka

The authorities' decision to relocate chemical warehouses from the Dhaka city's densely populated old part to Keraniganj has been facing bureaucratic tangle for nine years since 2010. The decision

Prevent gas cylinder and pipeline explosions

GAS explosion has become very common in the country nowadays. Even if someone escapes death, the victim has to suffer burn injury or loss of valuable organs. The authorities

Readers’ Forum

Ban coaching and tutorship :The High Court has recently ruled in favour of a government directive that banned school teachers - both governmental and non-governmental - from owning or

Gender bias is no laughing matter for workers

Susan Krauss :There is no reason that the same jokes, whether told by a male or female, should have the same impact on those hearing them. There are many

Amar Ekushey: Its significance and glory

Rayhan Ahmed Topader :Bangladesh got better prestige and glory when UNESCO declared 21st February as the International Mother Language Day. It is also making significant strides towards peace, progress

Include experts to bring discipline on roads

THE authorities concerned on Sunday constituted a 15-member committee with the inclusion of former minister, who was widely blamed for deliberately taking the side of unruly transport workers in

Not memorization, students need analytical involvement

ABOUT one lakh students have applied to the Directorate of Primary Education (DPE) of the Primary and Mass Education Ministry for reexamination of their results, claiming that justice will

Readers’ Forum

A heroic death :On 18 February each year, I cannot help my tears coming out from the eyes, as on this day about 49 year ago, Dr. Shamsuzzoha, Reader

Smokers are actually losing place

Mathew Litty :I have heard many people say that smoking gives some sort of relief. This is despite us knowing that smoking is bad for our health. After being

Machine learning 'causing science crisis'

Pallab Ghosh :Machine-learning techniques used by thousands of scientists to analyse data are producing results that are misleading and often completely wrong. Dr Genevera Allen from Rice University in