Keya Group boss Khaleque Pathan arrested on graft charges

Keya Group owner Abdul Khaleque Pathan has been arrested on charges of loan frauds involving more than Tk 1 billion.

The Anti-Corruption Commission says he was picked up from Dhaka's Segunbagicha on Sunday afternoon.

Its spokesperson Pranab Bhattacharya said they have prosecuted him for embezzling Tk 1.11 billion, taken as loans from state-owned specialised bank, Bangladesh Krishi Bank.

The loan was taken for its concern Keya Yarn Mills Ltd, of which Khaleque is Managing Director.

The raid was initiated after the national anti-graft agency started a case with the police in the morning, said Bhattacharya.

Keya Yarn Chairman Khaleda Pervin, directors Masum Pathan and Tansin Keya, and four former officials of the bank have also been accused in the case.

Pervin, Masum and Tansin are children of Khaleque.

The former bankers accused in the case are Md Satwar Hossain, a former assistant general manager of the bank at its Karwan Bazar branch, Md Zubair Manzur, a former deputy general manager and branch manager, and former senior principal officers Md Abdul Hossain and Golam Rasul.

The Keya Yarn factory at Gazipur’s Konabarhi supplies readymade garment factories.

In the case, the ACC said the branch of the bank went beyond the ceiling set by its headquarters in approving deferred payment letters of credit one after another in favour of Keya Yarn.

There was no deposit held against the credits, making the payback uncertain.

The firm did not use the bank to export yarn produced from cotton imported with the deferred payment letters of credit, through which the bank’s money was embezzled.

The embezzlement of the credit took place over a year from July, 2010.

According to the latest financial statement of Keya Cosmetics Ltd, one of the top firms owned by the group, it has taken credits worth more than Tk 13.5 billion from several banks.