Four agencies probe alleged irregularities over Tk 8,000cr in export proceeds

Bangladesh Bank, the Anti-Corruption Commission (ACC), the Financial Reporting Council (FRC) and the Bangladesh Securities and Exchange Commission (BSEC) have launched a joint investigation into alleged irregularities involving about Tk 8,000 crore in export proceeds linked to Keya Cosmetics Ltd.

According to sources, the export earnings�"equivalent to around $660 million�"were reportedly received in Bangladesh but were not credited to the company’s foreign currency (FC) accounts. The company alleges that the transactions were instead used to create forced loans without its consent.

The disputed transactions involve four banks�"Southeast Bank, Pubali Bank, National Bank and Standard Bank. Although the export proceeds were reportedly recorded as realised in Bangladesh Bank’s monitoring system and export proceeds realisation certificates (PRCs) were issued, the funds were allegedly not credited to the company’s FC accounts.

Keya Cosmetics claims the irregularities resulted in it being classified as a loan defaulter for nearly Tk 2,700 crore, disrupting its import and export operations. The four banks have rejected or declined to comment on the allegations.

The ACC is examining whether the export proceeds were properly repatriated, why forced loans remained despite the transactions being shown as realised, and whether any money laundering, banking fraud or other financial misconduct occurred.

Meanwhile, the FRC has identified inconsistencies among Bangladesh Bank’s records, the banks’ loan documentation and the company’s financial statements. Based on its findings, the council has asked Bangladesh Bank and BSEC to review the matter and take further action.

Bangladesh Bank spokesperson Arif Hossain Khan said the central bank is continuing its investigation into the alleged failure to credit export earnings in accordance with foreign exchange regulations. He said legal action would be taken against any individual or institution found responsible after the inquiry is completed.