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Published : 03 Mar 2025, 02:15 AM
As a native of Gopalganj, Chowdhury Nafeez Sarafat referred to the ousted prime minister Sheikh Hasina as “aunt”, former IGP Benazir Ahmed as “cousin”, and former finance minister AHM Mustafa Kamal as “uncle”.
Over the 15-year tenure of the Awami League government, he has amassed significant wealth.
Once an influential figure in Bangladesh’s financial sector, Nafeez Sarafat leveraged his power across different fields, with intelligence agencies surprisingly safeguarding his interests.
In 1999, he had a modest start at Standard Chartered Bank and later ascended to the position of director of IFIC Bank, a role he resigned amid scandal.
His meteoric and controversial rise began in earnest on Sept 24, 2008, when he secured a licence for a mutual fund called Bangladesh RACE Asset Management from the Bangladesh Securities Exchange Commission, or BSEC.
Although his name repeatedly came up in the financial sector irregularities during Hasina’s last three terms, he remained untouched.
The tide turned with the Awami League government toppled in a mass uprising in August 2024.
The Anti-Corruption Commission, or ACC, started peeling back the layers of his operations.
The central agency responsible for preventing money laundering, the Bangladesh Financial Intelligence Unit, or BFIU, the Criminal Investigation Department of police and the BSEC, also joined the investigation against him.
In a dramatic turn in August, both Nafeez and his wife’s bank accounts were frozen.
Known for intimidating intelligence agencies when reports of irregularities surfaced, he found himself squarely in the sights of the ACC.
The ACC's initial probe into an array of allegations against him, including embezzlement of Tk 8.87 billion through aggressive manoeuvres in bank acquisitions and the stock market has since unearthed a vast network of immovable and movable properties.
Investigators have traced his and his family's investments across 52 companies.
While Nafeez started off his career managing funds in the stock market, he did not stop there.
Over the past one and a half decades, he branched out significantly, diversifying into different industries including hospitality, power, mobile towers, real estate, media, agriculture, and technology, all while holding the chair of the board of trustees at the Canadian University of Bangladesh.
Nafeez was the former president of the Canada-Bangladesh Chamber House (Canada), a member of Kurmitola Golf Club and Army Golf Club, vice president of the World Chess Federation (Bangladesh Division), and a member of the Bangladesh Economic Association.
It is said the then ruling party’s favour was behind his extravagant success over only one and a half decades, enabling him to escape accountability for his irregularities.
His close ties with Hasina's advisor and Beximco Group Vice Chairman Salman F Rahman, former chairman of Bangladesh Association of Banks and Exim Bank Nazrul Islam Mazumder, and former chairman of BSEC Shibli Rubayat Ul Islam was widely known in the banking and capital market sector.
A senior ACC official involved in the investigation told bdnews24.com, “Nafeez Sarafat has acquired stakes in companies whenever he had the opportunity, either openly or anonymously.
“Sometimes through financial deals, other times through intimidation.
“Information has been found regarding his investments in 52 companies so far,” he said.
“His immovable properties, both in the country and abroad, have also been identified.
“Further verification is ongoing, and the total value of his assets in this list is expected to rise.
“Once properties owned by him or his family are located, an application will be filed with the court to seize them, preventing any transfer of ownership,” he added.
The companies in which the ACC has so far found Nafeez's investments are
AIFive Tech Services Limited,
Argus Media Services Limited,
Argus Research (BD) Limited,
Arosa Limited,
Bangladesh RACE Asset Management,
Bangladesh Association of Banks,
Bangladesh CapitaLand Development Limited,
Canadian International School Bangladesh,
Canadian University of Bangladesh Trust,
Gardenia Oils Limited,
Global Energy Limited,
Hira Capital Manente (BD) Limited,
IFIC Bank PLC,
Life Insurance Corporation Bangladesh Limited,
Luminous Equity Management Limited,
Sayeda Sajeda Chowdhury High School and College,
Milk Wave Dairy Limited,
Mau Valley Limited,
National Tea Company Limited,
New Edge IT Solution (Pvt) Limited,
News Bangla Media Limited,
Padma Bank PLC,
Padma Bank Securities Limited,
Royal University of Dhaka Trust,
CdNet Communications Limited,
Citizen Television Limited,
Coppertech Industries Limited,
Cream and Milk Limited,
Dainik Bangla Limited,
Demeter Digital Limited,
Dynasty Homes Limited,
Finex Software Limited,
Frontiers Equity Management Limited,
S&T Trading (Pvt) Limited,
S4 Nest Developments Limited,
Sarakhon Media Limited,
SFIL Finance PLC,
SFL Hotel and Resort Limited,
SFL Unique Nebras Meghnaghat Power PLC,
Shantiniketan Properties Limited,
Single Click IT Solution (Pvt) Limited,
Softhorizon (Pvt.) Limited,
Sonargaon Economic Zone Limited,
Southeast Bank PLC,
Star Infrastructure Development Consortium Limited,
Strategic Equity Management Limited,
Strategic Finance Limited,
Unique Hotel and Resort PLC,
J&J Energy Limited.
ACC Director General (Prevention) Md. Akhter Hossain told bdnews24.com, “The ACC is investigating multiple allegations against Nafeez, including bribery, corruption, fraud, abuse of power, embezzlement, and money laundering.
“In the meantime, the ACC has found significant assets in his name, and the investigation is underway.”
Since the change of power, Nafeez has been abroad, and bdnews24.com was unable to get his statement on the allegations.
SEIZURE OF HIS HOUSE, LAND, FLATS
On Jan 7, the court ordered the seizure of his home, land and 18 flats belonging to businessman Nafeez and his family.
Metropolitan Sessions Judge Zakir Hossain Galib passed the order after an application from the ACC.
Among the assets of Nafeez's family that are to be seized is a 20-storey house in Gulshan in his name.
He also has one flat in Gulshan, four in the Dhaka Cantonment Bazar area, one in the Nikunja North residential area and 50 percent of a flat in the Bashundhara residential area.
He has two plots in Nikunja, two 7,200 sq feet plots of land in Gazipur’s Kaliakoir, and one 5,400 sq feet plot in the Purbachal New City project of the Rajdhani Unnayan Kartripakkha, or RAJUK.
He also has 8.25 decimals of agricultural land in Badda's Kathaldia, 8.25 decimals of land in Gazipur Sadar, and 4.95 decimals of land in Joar Sahara.
Nafeez's wife Anjuman Ara Shahid owns a four-storey house on 5,400 sq feet of land in the Bashundhara residential area, a flat in Panthapath, one on Gulshan Link Road, one in Mirpur DOHS, one in Shahjadpur, and 50 percent of an apartment in the Bashundhara Residential Area.
She also owns three 2,160 sq feet of land in Nikunja, 1,440 sq ft of agricultural land in Badda's Kathaldia, and 8.25 decimals of land in Gazipur Sadar.
The court has also ordered the seizure of three flats in Banani and four flats in Baridhara owned by the couple’s son Chowdhury Rahib Safwan Sarafat.
ACC Deputy Director Masudur Rahman, who heads the investigation team probing the allegations against Nafeez, petitioned the court for these properties to be seized.
Information about immovable property in the names of Nafeez, his wife, and his son has been found in different parts of the country and the family is absconding, it said.
The petition states that after the ACC started its investigation, all the immovable properties of Nafeez Sarafat and his family members were transferred, relocated, mortgaged or taken away and that is why these properties need to be seized.
On Jan 22, the court ordered the seizure of a flat and a villa belonging to Nafeez in Dubai.
Although he was summoned for questioning on Oct 17 last year, he failed to appear before the ACC.
He had notified the relevant officer of his stay abroad via email.
Finally, on Feb 17, the court ordered the freezing of 74 bank accounts of Nafeez and his family.
The ACC's application said Nafeez and others are under investigation for various allegations, including the embezzlement of approximately Tk 8.87 billion through bribery, corruption, fraud, abuse of power, and collusion to deceive customers.
The application said, “Evidence shows that Nafeez, his wife, and his son deposited and withdrew large sums of money through various bank accounts, both in their names and in the names of associated organisations.
“These transactions are inconsistent with their known sources of income, or the stated purposes of the accounts.
“The investigation initially suggests that these significant bank movements were intended for money laundering,” it said.
INFLUENTIAL NAME IN THE CAPITAL MARKETS
Nafeez obtained the license of an asset management company called RACE Asset Management PCL in 2008.
Hasan Taher Imam was his partner, with Nafeez holding 24.25 percent of the company and Imam owning the remainder.
By 2013, RACE was responsible for the asset management of 10 term mutual funds.
Currently, 10 funds are listed on the Dhaka Stock Exchange, or DSE, under this company, with a combined size of approximately Tk 25 billion for both term and indefinite funds.
In 2019, an investigation by bdnews24.com revealed the prices of 10 mutual funds managed by RACE had gradually fallen to less than half of their nominal value.
It was also reported the amount invested by RACE in risky sectors exceeded Tk 100 billion.
All of this has been invested in unlisted companies, creating uncertainty about the return of small investors' money.
According to information on the DSE website, investors in mutual funds managed by RACE are currently incurring losses.
According to the latest weekly data given on Feb 13, the net asset value, or NAV, per unit of Eastern Bank Limited First Mutual Fund was Tk 7.76; whereas, on Wednesday, it was last traded at Tk 4.50.
Trust Bank First Mutual Fund's NAV was Tk 7.94; last traded at Tk 3.40.
IFIC Bank First Mutual Fund's NAV was Tk 7.6 on Feb 13; last traded at Tk 3.10.
First Janata Bank Mutual Fund's NAV was Tk 7.25 on Feb 13; last traded at Tk 3.20.
Popular Life First Mutual Fund's NAV was Tk 7.98 on Feb 13; last traded at Tk 3.
PHP First Mutual Fund's NAV was Tk 8.12 on Feb 13; last traded at Tk 3.10
EBL NRB Mutual Fund's NAV was Tk 7.99 on Feb 13; last traded at Tk 3.30
AB Bank First Mutual Fund's NAV was Tk 8.72 on Feb 13; last traded at Tk 3.10.
First Bangladesh Fixed Income Fund's NAV was Tk 8.01 on Feb 13; last traded at Tk 3.10.
Exim Bank First Mutual Fund's NAV was Tk 7.77 on Feb 13; last traded at Tk 3.20.
The maximum tenure of the 10 funds held by RACE was 10 years, but they were not terminated despite the expiration of the tenure.
The tenure was allegedly extended for another 10 years at Nafeez’s instigation.
RACE is also accused of violating the Mutual Fund Rules and conducting large transactions in the block market through the funds under its management.
Due to this, BSEC suspended all kinds of transactions on Jul 4, 2024, including the block market, in the funds managed by RACE, halting all transactions.
Earlier in June, transactions in all Beneficiary Owners, or BO, accounts of RACE were suspended, and the relevant trustees were instructed to take control of the BO accounts for all the mutual funds under their management.
On Feb 13, the two decisions given on Jun 24 and Jul 4, 2024, were withdrawn in a BSEC circular, and mutual fund transactions resumed on Feb 16.
These two circulars were related to the transactions of mutual funds managed by RACE Asset Management, the suspension of transactions in all RACE BO accounts, and the instructions of the trustees to take control of the BO accounts of all mutual funds under their management.
Meanwhile, in June and July 2024, the BSEC decided to conduct two investigations, filing multiple allegations against RACE.
RACE appealed to the High Court against the decisions of the regulatory body, including the suspension of the BO account and the investigation.
Although the High Court has issued a stay on the BSEC decision, the hearing of the appeal is ongoing.
On Feb 16, the regulatory body also closed the ongoing investigation against RACE.
Regarding the investigation’s closure, Executive Director Mohammad Rezaul Karim, who was BSEC's spokesperson at the time, told bdnews24.com: “The matter is now pending in the High Court.
“After reviewing the legal aspects, the commission has decided not to continue the investigation.”
AKM Mamunur Rashid, chief compliance officer of RACE Asset Management, told bdnews24.com: “We welcome this step by the regulatory body.”
Investors lose money if the amount equal to the asset value per mutual fund unit is traded.
The NAV of mutual funds managed by RACE is being traded at significantly lower levels.
Mamunur told bdnews24.com, “About 70 percent of the total assets of the mutual funds in the capital markets have been stuck under various investigations for a long time.
“Considering the asset size, the funds managed by RACE account for 50 percent. Our transactions were also suspended for a long time.
“Mutual funds are formed for long-term investment. But immediately after the dividend is paid, the buying and selling of funds increases.
“As a result, the gap between the fund's asset value and the market price per unit is increasing, while the market price is still very low.”
Having established good relations with the former finance minister, Nafeez recommended approval for the direct listing of Best Holdings' IPO.
Although unsuccessful at first, he eventually managed to get Best Holdings listed through former BSEC chairman Shibli.
Media reports also claim Nafeez arranged for the placement shares of Best Holdings to be allotted in the names of former IGP Benazir’s two daughters.
SINKING PADMA BANK
The funds managed by RACE invested Tk 702,000 in the struggling Farmers Bank (now Padma Bank), which enabled Nafeez to become a director of the bank.
He later rose to the position of chairman. His wife was also among the entrepreneurs involved in the bank.
Farmers Bank went through a change of ownership in 2017 when it was about to be shut down amid irregularities and loan scams.
In the face of pressure, Mohiuddin Khan Alamgir, an Awami League Presidium member, had to step down from the post of chairman.
Nafeez took over as the chairman the next year. The Farmers Bank was rebranded as Padma Bank in January 2019.
To rescue Padma Bank, Tk 7.15 billion was arranged from the state-owned Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank and Investment Corporation of Bangladesh (ICB) through a government initiative.
It was equivalent to 66 percent of the total capital of the bank.
The banks did not benefit from that investment. Instead, Padma Bank continued to incur losses.
In 2019, when Farmers Bank was rebranded as Padma Bank, the institution’s defaulted loans stood at Tk 37 billion.
By the end of 2023, this amount had risen to Tk 37.62 billion, accounting for about 64 percent of non-performing debt.
This indicates that during Nafeez's tenure, defaulted loans increased by approximately Tk 6.02 billion.
In 2021, a cartoon by Ahmed Kabir Kishore caused a stir on social media. The cartoon depicted Nafeez with a bank's symbol, the chest handle, on his body instead of a navel, captioned, “Ami Chow Nafeez Sarafat/Jani Bank Khawar Dharapat!”
At that time, social media discussions indicated that online activist Mushtaq Ahmed wrote the caption above the cartoon drawn by Kishore.
In May of that year, Mushtaq Ahmed, Kishore, and four others were arrested on charges of 'anti-government propaganda and rumour.'
The 53-year-old Mushtaq died in Kashimpur High Security Central Jail after being repeatedly denied bail. After his release on bail, Kishore raised complaints of torture.
IRREGULARITIES IN CANADIAN UNIVERSITY PLOT
Nafeez was the chairman of the board of trustees of the Canadian University of Bangladesh.
The chief advisor to the board of trustees was Mohammad A Arafat, chairman of the Suchinta Foundation, who later became a member of parliament and state minister for information.
In December 2018, RAJUK allocated a plot of nearly 1.15 hectares to the Canadian University in the Purbachal New City project.
In 2019, the Ministry of Housing and Public Works raised objections to the allocation of plots to the university, alleging violations of regulations.
The ministry also demanded an explanation for changing the plot’s category to a private university, disregarding the High Court’s instructions.
In the original approved design of the Purbachal New City project, the plot was designated for a “secondary school”.
However, following an application from Nafeez, RAJUK approved the category change from “secondary school” to “college/university” in December 2018.
After the issue came to light, the housing and public works ministry sent a letter to the RAJUK chairman in February 2019 regarding the plot allocation.
The letter said, “The fourth amendment of RAJUK and the proposed iconic tower section of the fifth amendment have been upheld by the order of the Honorable High Court Division.
“However, the remaining part of the fifth amendment, except for the iconic tower, along with any subsequent changes, were not accepted by the Honorable High Court and are therefore null and void.”
Nafeez’s wife Anjuman owns a plot on Road No 103 in Gulshan.
In 2017, she applied to convert it into a commercial plot, and RAJUK approved the request “on the instructions of the Ministry of Housing and Public Works”.
Before that, RAJUK had rejected the application saying the plot “does not fall under the scope of commercial use”.
[Writing in English by Nahifa Nawar; editing by Arshi Fatiha Quazi]
