BM Desk : Explosive BSEC probe reveals fake assets, forged audits, and high-level collusion behind massive financial fraud.
A massive Tk 3,500 crore embezzlement by Best Holdings Limited, the owner of Le Méridien Hotel in Dhaka, has rocked Bangladesh’s financial sector, according to a confidential report by the Bangladesh Securities and Exchange Commission (BSEC).
The investigation, conducted by a BSEC-formed probe committee in August 2024, uncovered a complex web of deceit involving fake land documents, forged audit reports, and artificially inflated assets. The scheme misled both state-owned banks and retail investors, causing huge financial losses and systemic risks to the market.
The report reveals that Best Holdings falsely claimed ownership of land worth Tk 4,081 crore without any legal documentation. Based on this inflated valuation, five state-owned financial institutions — Sonali, Agrani, Janata, Rupali Banks and ICB — invested a combined Tk 1,965 crore. More than Tk 900 crore of this has already been identified as irrecoverable losses, including Tk 423 crore from Sonali Bank alone.
The fraud was allegedly carried out under the protection of an “unholy nexus” involving politically influential businessmen, former ministers, and top intelligence officials. Among those named are Sheikh Kabir Hossain, uncle of Prime Minister Sheikh Hasina, and former DGFI chief Lt. Gen. (Retd.) Mamun Khaled, both of whom the report recommends be disqualified from holding directorships. Former BSEC chairmen Dr. Khairul Hossain and Shibli Rubaiyat-ul-Islam are also accused of enabling the fraud by approving illegal bond issues and overpriced share offerings despite regulatory violations.
The report highlights a severe conflict of interest involving Race Asset Management, chaired by Chowdhury Nafeez Sarafat, and its managing director Dr. Hasan Taher Imam. The company allegedly diverted mutual fund investments into Best Holdings shares, risking public investor funds.Other entities implicated in the scandal include Sentinel Trustee, Green Delta Insurance, and multiple credit rating and audit firms, all of which are accused of enabling or concealing the fraud.
Amin Ahmed and Hasan Ahmed (heads of Best Holdings) were fined Tk 10 crore. Penalties against ICB and BGIC, suspension of licenses for the involved audit and credit rating agencies, lifetime bans from the capital market for Nafeez Sarafat, Hasan Taher Imam, and former BSEC chiefs Khairul Hossain and Shibli Rubaiyat, and referrals to the Anti-Corruption Commission (ACC) 10 mutual fund registrations were canceled. The investigation was finished in 2024, but it wasn’t made public for almost 10 months, which raised more concerns about institutional accountability and transparency.
