The deprived shareholders of the Beacon Group have brought various allegations against the top officials of the company, including the company's managing director (MD) also former MP Mohammad Ebadul Karim.
They said, "He is involved in corruption, irregularities and value added tax (VAT) evasion."
In a written complaint to the Chief Adviser, Monibur Rahman said on behalf of the deprived shareholders, Beacon Pharma PLC's MD Mohammad Ebadul Karim is involved in illegal activities. Evasion of Tax & Vat, smuggling and money laundering, violating the existing laws of the land and deceiving the shareholders.
He said, "We would like to draw your kind attention to the issues of malpractice, misappropriation, smuggling and money laundering of Mohammad Ebadul Karim (ex-member of parliament from Awami League-Brahmanbaria-5), Managing Director of Beacon Group. In different ways he has been misappropriating funds from Beacon Pharmaceuticals PLC (BPP) since long and was involved in all his evil activities mentioned above. A few of his misdeeds as found out by us are given below which will divulge a lot more after a proper investigation is instituted."
He said, "Karim is associated in politics of Awami League since long and is a nominated MP from the constituency of Brahmanbaria-5 in the year 2018 and elected Member of Parliament. During his tenure as MP he was engaged in unlawful money earnings from his constituency's different development projects, organized a gang of muscle men to stop voices of opposition and engaged in illegal possession of land and unlawful recipient of subscriptions from various business organizations and local people. During his tenure as MP, the locality witnessed 46 murders of opposition people who became barriers to his misdeeds."
Monibur Rahman said, "During the year 2021 he (MD) has sued 6 officials of his company for allegedly misappropriating company's money to the tune of Tk 84 crore and forced them to go behind bars with his undue influence as MP and power of his party. This is a baseless case for which no such reflection of such misappropriation appeared in the books of account of the company or from the Statutory Auditors Report. They were in custody for around 2 to 3 years, lost their jobs and their terminal benefits withheld. The case is still alive."
He said in his written statement it is surprising to note that the companies mentioned above merely exist in business activities only without no business activities are given short term loans (though these seemed to be a grant by the company and are not repaying back) by Beacon pharmaceuticals Plc which ultimately has borrowed this finance from the Bank at around 10 per cent interest. Beacon Pharmaceuticals has borrowed a total fund from Bank as short term loan is Tk 650 crore, out of which Tk 273 crore they have granted loan to sister concerns of which Tk 85.75 crore were given as loan to companies which have hardly any business and Tk 187.25 crore were given to other operating companies though the realization of the loans in not there but the balance of their loan is increasing every year."
He said that a company named Beacon Asia Pacific Ltd. has been registered in Hong Kong without the permission of the government which has been renamed as Beacon Medicare Ltd subsequently. The company has been opened exclusively for the purpose of smuggling and money laundering. The proof of smuggling and money laundering can be confirmed from their bank statement with HSBC, Hongkong.
Mohammad Ebadul Karim also opened a business organization in Dubai, UAE in the name of Beacon Global Operations (FZC). We would request you to investigate Mashreq Bank in Dubai about the Company, and you will get all the relevant information.
Apart from local sales, Beacon Pharmaceuticals Plc had been exporting pharmaceuticals products from 2013 to 2019, which were then shifted to Beacon Medicare Ltd. Bangladesh with a view to deceive Beacon shareholders by not taking profit on export as dividend. Since the medicines are exported by Beacon Medicare Ltd and its profit is now distributed to the directors of Medicare Ltd. All of them are family members of Ebadul Karim.
Comparative Statement of local sales and export sales which encourages Ebadul Karim to stop export from the listed company through his personal company.
He formed a new company as Beacon Medicare Ltd and registered in the Joint Stock Company in which he himself and other members of his family are the directors and started export from this company. The profits on export are now distributed only to the MD and his family members thus deceiving the shareholders of Beacon out of their true dividend. If The Securities and Exchange Commission goes for a thorough investigation, the real truth will come out, which will ensure proper justice to the shareholders.
The Managing Director of Beacon group, Mohammad Ebadul Karim is directly involved in share market manipulation by Beacon Pharmaceutical Plc. He was involved in share market manipulation of the following companies:
