Photo : Collected
Bangladesh Institute for Professional Development (BIPD) is facing challenges withdrawing its Fixed Deposit Accounts (FDAs) totalling Tk 1 crore 8 lakh 35 thousand, which have been held by Fareast Finance & Investment Limited (FFIL), a listed company in the capital market, for about five years. BIPD invested this sum across six accounts between 2016 and 2018.
Despite the FDAs' expiry on May 30, 2019, BIPD has yet to receive the principal amount or any profits. Complaints have been lodged with Bangladesh Bank, the Bangladesh Securities and Exchange Commission (BSEC), and the Ministry of Finance. However, FFIL has not released any funds.
Regarding the complaint, BIPD Director General Kazi Md Mortuza Ali told The Daily Messenger, “BIPD opened six FDRs worth Tk 1 crore 8 lakh 35 thousand in Fareast Finance from 2016 to 2018. The tenures of these six accounts ended between December 28, 2018, and May 30, 2019. However, for the past four years, BIPD has not received any profits from the FDRs, let alone the invested principal amount. The institute has sent 56 letters to the company to recover the invested money, but the company has not responded to this issue.”
When asked about the matter, Muhammad Ali Zaryab, managing director and chief executive officer of Fareast Finance & Investment Limited, acknowledged not paying the money. He said, “Fareast Finance is willing to pay the FDR money, but the BIPD authorities themselves are not cooperating. We requested them to provide a copy of the regulations established during the FDR opening, but the company has not provided it. Despite multiple attempts to reach out, they have not come forward, opting instead to file complaints with Bangladesh Bank, BSEC, and other institutions. Additionally, we have issued a written response to them."
He further mentioned, “In 2019, the Bangladesh Financial Intelligence Unit (BFIU) seized these accounts. We informed them that if they obtain a court order regarding the payment of money, we will comply. However, the company has taken no action in this regard.”
Mortuza Ali alleged, “We've appealed to Bangladesh Bank for intervention and payment of BIPD's dues. Letters were sent to the governor of Bangladesh Bank on June 11, 2019, and March 31, detailing the Fareast Finance issue. Despite 34 letters and emails to the governor, deputy governors, and the Financial Integrity & Customer Services Department (FICSD) of Bangladesh Bank, no response has been received.”
On December 20, 2022, and August 2, 2023, letters were sent from the Financial Institutions Division of the Ministry of Finance to Bangladesh Bank, urging an investigation and necessary legal action regarding Fareast Finance & Investment Limited's failure to repay BIPD's funds. However, Bangladesh Bank has yet to take any action.
Additionally, in March 2022, the BSEC directed steps to be taken for the repayment of the invested funds, but no response has been received.
On March 7 of the last year, it was informed that applicable legal action can be taken according to the spirit of subsections 2 and 3 of section 116A of the Income Tax Ordinance 1984 issued by the Central Intelligence Cell (CIC). Nevertheless, Fareast Finance & Investment Limited has disregarded this directive.
The written complaint states, “Fareast Finance is unreasonably withholding BIPD's deposited funds. Moreover, it has defied directives from both the CIC and the BSEC. It is imperative to promptly reimburse BIPD's invested funds, along with accrued profits, and take punitive measures for the audacity and lawlessness of this institution.”
“Fareast Finance & Investment Limited has unreasonably withheld BIPD's funds for over five years, while Bangladesh Bank appears to have taken no action. Consequently, BIPD has been unable to recover its dues, resulting in severe financial losses. Due to the unjust and unreasonable actions of Fareast Finance and Investment, a promising training institute like BIPD has suffered irreparable damage. In this emerging scenario, stakeholders may hesitate to deposit funds in financial institutions, potentially harming the country's economy,” the complaint added.
Messenger/Fameema
