Shares worth approximately Tk 6,800 crore linked to Salman F Rahman, former adviser to ousted prime minister Sheikh Hasina, have been frozen amid mounting investigations into his financial dealings.
The Bangladesh Financial Intelligence Unit (BFIU) has recently requested the Bangladesh Securities and Exchange Commission (BSEC) to freeze beneficiary owners (BO) accounts connected to Salman, his son Ahmed Shayan Fazlur Rahman, 74 associates, and eight proxy companies.
These entities collectively acquired shares valued at Tk聽6,797 crore using loans from different banks over the past four years, according to Bangladesh Bank officials.
The frozen shares may be used to recover defaulted loans if Salman鈥檚 companies fail to repay on time.
Reports indicate that Salman diverted massive sums from banks to buy shares under personal and proxy accounts, enabling large-scale market manipulation.
The proxy companies were Absolute Construction, Apollo Trading, ART International, Jupiter Business, Crescent Limited, New Dhaka Industries, Central Land and Building, and Trade Next International.
Despite these proxies, officials claimed Salman was the ultimate owner of the shares.
Besides, 74 individuals held shares which were actually owned by Salman and his companies.
Salman faced severe criticism for his alleged direct involvement in stock market manipulation, which left countless investors financially devastated.
He is widely suspected behind the stock market scams of 1996 and 2010.
Investigations into the 1996 scandal implicated Beximco Pharma and Shinepukur Holdings, companies under Salman鈥檚 control, in price manipulation scam. Similarly, the 2010-11 probe led by Khondkar Ibrahim Khaled accused Salman of significant involvement, although he and his brother were acquitted in 2015.
On October 1, the BSEC imposed a massive fine of Tk 428.52 crore on nine individuals and companies for manipulating the shares of Salman F Rahman鈥檚 Bangladesh Export Import Company Ltd.
Among those fined were Salman鈥檚 alleged associates, including ART International Limited, Jupiter Business, Apollo Trading, TradeNext International, and Crescent Limited, previously identified as proxy companies used for stock market investment.
Bangladesh Bank officials revealed that Salman withdrew approximately Tk 50,000 crore from the banking sector, half of which came from Janata Bank through 29 companies.
Nearly Tk 20,000 crore of Janata Bank loans are now classified as defaulted, leaving the state-run bank in financial distress.
Additionally, Salman鈥檚 companies borrowed around Tk 24,000 crore from Sonali, IFIC, Rupali, National, and AB Bank.
Salman also reportedly influenced policies to facilitate financial misconduct.
In 2016, a Bangladesh Bank scheme allowed defaulters to reschedule loans for 10 years with a minimal 2 per cent down payment, allegedly benefiting Salman鈥檚 interests.
This was further relaxed in 2022, extending repayment terms to 29 years. That year alone, a record Tk聽63,720 crore in loans was rescheduled, up from Tk 26,810 crore in 2021.
As Sheikh Hasina鈥檚 private industry and investment adviser, Salman wielded immense influence over the financial sector, suppressing criticism and avoiding accountability.
This unchecked impunity emboldened him to orchestrate even larger scams, leveraging bank loans and exploiting the capital market.
On August 22, the Anti-Corruption Commission (ACC) initiated an inquiry into Salman following allegations of corruption, embezzlement, and irregularities in the banking sector.
Salman was arrested on August 13 while attempting to flee the capital by boat and is currently in prison.
BFIU has so far frozen bank accounts worth Tk 15,000 crore involving 366 individuals linked to financial irregularities.
