Standard Chartered account of Eden Fisheries, registered at a non-existent address, saw over Tk 30 crore in unusual transactions within months

Dhaka: Abdul Hye Bachchu, the controversial former chairman of Basic Bank, allegedly set up a company with a fake address and ran crores of taka through its bank account, an investigation by Jamuna Television has found. The transactions took place in 2013. Experts say the money may be part of the funds siphoned off from Basic Bank loans.

Bachchu has faced allegations of looting several thousand crore taka through loans issued in the names of paper companies. When he appeared for questioning at the Anti-Corruption Commission (ACC), he denied the allegations. “The allegations are still under investigation. They have not yet been established,” he told reporters.

A company that doesn’t exist at its address

Jamuna’s investigation found that Bachchu formed Eden Fisheries Limited on 13 December 2010, soon after becoming chairman of Basic Bank. Records of the Register of Joint Stock Companies list four directors: Bachchu, his wife and their two children. The registered address is 42/1 Ka, Jahan Plaza, Segunbagicha.

When the reporting team visited the address, the building owner and other tenants said no such company had ever operated there. “There has never been any organization called Eden Fisheries here,” one of them said. “No one came to rent space either.”

Crores moved in days

Eden Fisheries held an account at Standard Chartered Bank’s Motijheel branch. Bank transactions found by the investigation show the following:

• 2 May 2013: Tk 5 crore withdrawn through 10 cheques of Tk 50 lakh each.
• 5 May 2013: Another Tk 1 crore withdrawn. The same day, two people deposited Tk 1 crore in cash, Tk 50 lakh each.
• 16 May 2013: Tk 4 crore withdrawn through two cheques. The same day, Tk 5 crore was deposited through two cheques.

In all, the account saw more than Tk 30 crore in unusual transactions within a few months, including Tk 9 crore in a single day.

Experts: transactions highly suspicious

Dr. Iftekharuzzaman, executive director of Transparency International Bangladesh (TIB), said transactions of this size within such a short time were suspicious. “The bank that holds the account had a responsibility, and likewise Bangladesh Bank and the National Board of Revenue had responsibilities,” he said. He described the information as extremely important for the ACC’s ongoing work.

Questions over the bank’s role

Bachchu’s alleged involvement in the loan scandal was the talk of the country in 2013, yet Standard Chartered Bank apparently raised no questions about the unusual activity in the account. The head of the bank’s branch declined to comment.

Shuvankar Saha, spokesperson and executive director of Bangladesh Bank, said banks are required to report suspected proceeds of crime. “If a bank suspects that funds are proceeds of a crime, it is clearly reportable as a Suspicious Transaction Report (STR),” he said. “Failing to report it is unethical and wrong.”

Neither the bank nor the relevant government offices have any information on what kind of business Eden Fisheries conducts.

Visiting the registered address, the reporting team found that no organization by the name of Eden Fisheries has ever existed there, even though crores of taka were transacted in its name.