ACC raids Securities and Exchange Commission to probe irregularities, corruption

The review finds the IPO was approved against fabricated income and wealth statements filed by the companies

The Anti-Corruption Commission, or ACC, has raided the Bangladesh Securities and Exchange Commission, or SEC, the capital market regulator, to investigate charges of irregularities and corruption in many sectors, such as initial public offerings or IPO approval, during the previous government.

ACC spokesperson Tanzir Ahmed said the commission officials conducted the drive at the SEC Building in Dhaka’s Agargaon on Sunday.

According to a statement issued by the anti-graft watchdog, the enforcement team reviewed the records tied to the IPO approval from the SEC, the prospectus submitted by the companies, the audit report, and other necessary documents.

The review found the IPO was approved against the fabricated income and wealth statements filed by the companies and the balance sheets produced through window dressing.

In many cases, the recommendations and observations of the Dhaka Stock Exchange, or DSE, have not been taken into account in this regard - which has prepared the ground for massive irregularities.

“Besides, the SEC did not take proper measures in the wake of private placement fraud and trading, entering the market with a high share price, and selling the bonds in a short time, and rapid depreciation of the price.”

The ACC said, "The weak companies have been put in the Z category as low-quality firms within a few days of entering the market due to their illicit approval.

The anti-graft watchdog’s enforcement team will submit a complete report to the commission after reviewing all the records.

Based on that, the commission will take the next decision, Tanzir said.

Shibli Rubayat Ul Islam, who served as the SEC chairman for the last four years of the Awami League government, is behind bars after his arrest last year.

The commission has already initiated a case against him for taking a bribe worth Tk 37.6 million for granting a broker house licence to Monarch Holdings Ltd.

The ACC also investigates Beximco Green Sukuk and IFIC Amar Bond in the SEC.

Salman F Rahman, vice chairman of Beximco Group and former chairman of IFIC Bank chairman, is also in prison now.