B Mirror Report

The financial report of Fu-Wang Foods Limited, a publicly traded business in the food and allied industries, for the fiscal year that concluded on June 30, 2024, has been accused of having irregularities. To look into these claims against the corporation, the Bangladesh Securities and Exchange Commission (BSEC), a regulatory authority, has opened an investigation. A three-person investigative committee has been established by BSEC to look into Fu-Wang Foods’ financial irregularities. The committee has been given sixty days to finish the inquiry and provide a report.

BSEC Director and Spokesperson Abul Kalam admitted the formation of the investigation committee and said that an investigation committee has been formed to investigate the financial irregularities of Fu-Wang Foods. In an order issued on May 17, BSEC Additional Director Mohammad Rakibur Rahman, Deputy Director Md. Shahnewaz and DSE Deputy Manager Badrul Islam have been given the responsibility of the investigation.

The investigation will examine the financial statements for the fiscal year 2024, including business operations, assets and liabilities, shareholders’ equity, cash flows, and the compliance of the financial statements with IAS, IFRS, and ISA. In addition, the ownership and actual existence of the company’s plant and machinery, land, buildings, etc. will also be reviewed.

Notably, Fu-Wang Foods has not declared any dividends for shareholders in two consecutive fiscal years (2023 and 2024). The company last paid an interim cash dividend of only 0.50 percent in the second quarter of 2022. And the company’s loss per share for the nine months ended March 2025 stood at 33 paisa, which increased compared to the previous year.

In addition, there are serious allegations of corruption, embezzlement, and abuse of power against the company’s current management and board of directors. The company’s managing director, Mia Mamun, has also been accused of embezzling money from general investors.

Earlier, after acquiring Emerald Oil in 2017, Minori Bangladesh bought 7.61 percent shares of Fu-Wang Foods on January 20, 2022. However, even after this change of ownership, the company failed to turn around financially. On the contrary, the new management authority also failed to hold 30 percent shares as per BSEC rules.

In 2000, Fu-Wang Foods went public on the stock exchange. At the moment, the company’s shares are traded in the “B” category. Its total number of shares is 11 crore 8 lakh 39 thousand 284, and its paid-up capital is 110 crore 83 lakh 90 thousand taka. As of right now, only 7.85 percent of the company’s shares are owned by entrepreneurs. However, 82.57 percent of the shares are owned by ordinary investors.