Two-member probe team to investigate under-invoicing and illegal asset acquisition charges: ACC forms investigation team against Rangs Electronics over Tk 20,000 crore money laundering allegations

NN Online:

The Anti-Corruption Commission (ACC) has formed a two-member investigation team to probe allegations of illegal asset acquisition and money laundering through under-invoicing against Rangs Electronics Ltd and its owners.

The investigation team is headed by ACC Deputy Director Md. Alamgir Hossain, with Assistant Director Md. Al-Amin as the other member.

The commission decided to launch the investigation on July 17, taking into account a report published in daily Inqilab regarding the company’s supply of electronic goods to various government projects during the previous administration, embezzlement of government funds, illegal asset acquisition, and laundering of at least Tk 20,000 crore to Singapore, Japan, and other countries over the past decade and a half.

Previous Clearance Overturned

Earlier, the then ACC Chairman Mohammad Moinuddin Abdullah, considered loyal to former Prime Minister Sheikh Hasina, had investigated the allegations and cleared the company of wrongdoing. However, following a report published in daily Inqilab on July 1, the commission decided to reopen the investigation on July 17 and subsequently formed the two-member probe team.

Massive Financial Crimes Alleged

According to the published report, Rangs Electronics Ltd laundered at least Tk 10,000 crore during the Awami League’s rule, while embezzling at least Tk 4,000 crore in government funds. The company allegedly looted hundreds of crores of taka under the pretext of supplying electronic products and equipment to various ICT projects of the previous government.

Through these activities, the company’s owners reportedly built massive wealth both domestically and internationally, using both their own names and aliases. Despite engaging in multifaceted financial crimes including fraud, VAT and tax evasion, Rangs Electronics remained beyond legal reach due to direct assistance from corrupt officials in Bangladesh Financial Intelligence Unit (BFIU), Anti-Corruption Commission (ACC), CID, and the Central Intelligence Cell (CIC) of the National Board of Revenue.

Company Background and Ownership

According to the investigation, Rangs Electronics Limited, now popularly known as “Sony Rangs,” was established 41 years ago in 1984 by the late Akhtar Hossain. Following his death on February 11, 2022, his wife and children now own the company.

The current Managing Director is Jimmy Ekram Hossain (J. Ekram), son of Akhtar Hossain. Deputy Managing Director is Binas Hossain, daughter of Akhtar Hossain. Vice Chairperson is Sachimi Hossain, wife of Akhtar Hossain.

Japanese Citizenship Shield

The report indicates that the company’s major weapon in conducting corrupt business is its owners’ Japanese citizenship. Whenever any law enforcement agency in Bangladesh attempts to investigate their crimes, they invoke their “Japanese citizenship,” threatening that Japanese investment is involved in the business and that harassment through legal cases would lead to withdrawal of Japanese investment. They also claim their company provides employment to hundreds of people, leading investigating agencies to provide clearance in exchange for substantial amounts of money based on these laughable justifications.

Extensive Properties and Assets

According to the report, the company owners and top officials possess extensive assets under various names, including:

– House No. 8, Road 118, Gulshan-1: A luxurious duplex house valued at approximately Tk 300 crore

– House No. A-2, Boshoti Moyuri, 8/1, Topkhana Road, Segunbagicha, Dhaka: A 9-story building valued at at least Tk 150 crore

– Four apartments in Segunbagicha owned by General Manager Zane Alam, valued at approximately Tk 8.2 crore

– 300 acres of land in Gazipur, Kaliakair, where a resort was built by illegally appropriating government property in collusion with the Forest Department

Money Laundering Methods

The company has sold at least Tk 24,500 crore worth of electronic goods with import costs exceeding Tk 15,000 crore. However, to evade retail VAT and factory VAT, the company showed much lower sales figures in its institutional income tax returns.

To evade income tax, the company opened Letters of Credit showing 70% lower values and legally sent 30% of money abroad through banking channels. The remaining 70% (approximately Tk 10,500 crore) was illegally sent in US dollars or through hundi from Dubai to Singapore to Trust Moto Pvt. Ltd., Rangs Electronics’ own company in Singapore.

This money laundering was facilitated by paying 10% commission to the manager of Sonali Bank’s Bangla Motor branch and former Managing Director of Janata Bank, Abdus Salam Azad.

Bribery and Corruption Network

The company has been settling matters by bribing relevant NBR officials annually. General Manager Enayat Mallik has been “managing” these arrangements by bribing NBR and customs officials.

The report reveals Singapore addresses linked to the company and indicates that following Akhtar Hossain’s death, his wife, son, and their spouses, being foreign nationals, have been selling properties in Bangladesh and transferring the proceeds abroad through hundi and under-invoicing methods.

Investigation Challenges

Despite specific and documentary evidence against the company, law enforcement agencies have ignored the evidence, sometimes providing clearance in exchange for substantial bribes, and sometimes covering up due to influence from powerful Awami League and business leaders.

However, the reporter’s extensive investigation has uncovered the dark empire of the company’s owners.