Can Primeasia University rebuild its reputation after massive corruption scandal?

An audit has uncovered widespread irregularities in procurement, recruitment, and financial management at the private university

Primeasia University has been mired in irregularities and corruption across its institutional activities, from procurement to recruitment, according to an analysis of its financial statements, internal audit reports, and related accounts.

A re-audit by Mahfel Huq & Co Chartered Accountants has further highlighted these discrepancies.

One of the most serious allegations involves the embezzlement of over Tk 300 million between February 2020 and June 2024, with half of the misappropriated funds originally held in fixed deposits under the university’s name.

The key figure accused of these irregularities is Raihan Azad Tito, former vice chairman of the university’s Board of Trustees who was previously removed over similar allegations.

Others implicated include Iffat Jahan, a recently dismissed treasurer and former acting vice chancellor said to be a close associate of former prime minister Sheikh Hasina’s younger sister Sheikh Rehana, as well as former vice chancellor Shubhomoy Dutta, who resigned amid student protests, and suspended director of finance and accounts Shiper Ahmed.

Allegations of facilitating corruption have also surfaced against suspended assistant director of admissions and marketing Tanvir Ahmed, resigned assistant directors of procurement Nahid Hasan and Zubaer Siddik Tanin, and dismissed part-time teacher Sayed Ferdous Mugdho.

However, suspended director Shiper denied any wrongdoing.

He told bdnews24.com, “I did not use university funds for personal purposes. The money was spent on Board of Trustees registration and other university-related expenses.”

The university authorities recently filed a case against Shiper at Dhaka Chief Metropolitan Magistrate’s Court over the alleged embezzlement.

Addressing the lawsuit, Shiper sai: “I will defend myself legally.”

A GRAND LOOT

Financial irregularities have been raised regarding the under-construction permanent campus, security company, office décor, cleaning works, consultant, digital marketing and students paying cash for admission fees in Primeasia University.

Besides, corruption was found in furniture purchase, advertising, vehicle purchase and maintenance, fuel and research material purchase.

Zubaer is alleged to have bagged Tk 700,000 by selling the university’s Sports Club membership to existing and former teachers and students.

Besides all these, significant corruption has been found in the construction works of the university’s permanent campus. Inficom SA Construction BD Limited, a company close to Raihan Azad, signed a contract worth Tk 87.2 million to construct the permanent campus.

The then acting vice-chancellor and treasurer Iffat had signed the contract in September 2023 on behalf of the university.

Despite over Tk 40 million being disbursed from the university’s treasury, the campus construction remains largely stagnant.

The audit report reveals significant financial mismanagement in this project.

Raihan Azad also faces accusations of personally retaining over Tk 50 million meant for student canteen rentals over the past five years.

He allegedly sublet the canteen space to third parties while defaulting on rental payments himself.

During the tenures of Raihan and Iffat, the university accumulated over Tk 300 million in outstanding liabilities, including procurement debts, tax withholdings, rent, and other expenses.

Although the university released necessary funding regularly, those were never paid.

No audit was done in 2020 and the tax return was not submitted.

That allowed the perpetrators to opt for corruption and irregularities.

As there was no financial statement, the university failed to submit financial reports to the country’s higher study watchdog the University Grants Commission, or UGC.

Moreover, the appointment of Iffat as treasurer violated the Private University Act 2010, which mandates hiring a candidate with proven financial and administrative expertise.

Instead, Iffat, who had a background in humanities teaching at a college, was appointed.

Due to her "lack of competence and experience," the university's financial and administrative structures collapsed, facilitating these irregularities, sources claim.

She has since been served a show-cause notice by the university.

Repeated attempts to reach Iffat for comment were unsuccessful.

She answered calls but remained silent before hanging up.

‘ORCHESTRATED’ PROTEST

Accusations have surfaced that individuals implicated in corruption and irregularities formed factions to orchestrate a movement aimed at removing the university's Board of Trustees.

The university’s newly appointed administration recently issued statements in national dailies outlining these claims.

The statements highlighted allegations of corruption and mismanagement, asserting that the accused tried to obscure their irregularities by drawing students into protests against the current Board of Trustees and the permanent campus project while coercing faculty members to participate.

These activities reportedly included road blockades in Banani, protests outside the UGC, and demonstrations near the Secretariat, with alleged involvement from Bangladesh Chhatra League members.

According to the statement, "After allegations of financial and administrative misconduct surfaced, Iffat Jahan, Raihan Azad Tito, and their associates moved to oust the Board of Trustees. As part of this plan, they orchestrated a strategy to involve students in protests.

“A secret meeting included Chhatra League-affiliated individuals along with both current and former students of the university," it said.

“The meeting finalised demands for the permanent campus construction and the removal of the Board of Trustees. Consequently, a demonstration was staged at the UGC premises.

“However, after failing to secure their demands in a meeting with the education advisor, they pursued alternative approaches.

“On Jan 6, an emergency meeting was convened at 3:30pm under the name of the vice chancellor’s personal secretary Naimul Islam,” it added.

Acting VC and treasurer, registrar, deans of all faculties, the chairmen of all departments, proctors, and general students attended the meeting.

That meeting finalised the demand for removal of the Board of Trustees and construction of a permanent campus.

“A ‘long march to education ministry’ was announced to be held on Jan 7 at 9:30 am. It was the treasurer who forced everyone to attend the protest programme at the Secretariat,” the statement said.

Repeated attempts to reach Raihan for comments were unsuccessful.

Calls to his mobile phone were answered by an employee at his shop, who declined to provide contact details.

However, people close to Raihan said he went into hiding as the Anti-Corruption Commission filed some cases against him.

ATTEMPT TO RECONSTITUTE BOARD OF TRUSTEES

After the change of government following a student-led movement, the Primeasia University students took to the streets with different demands.

Allegations have surfaced that those involved in irregularities are attempting to exploit the situation to form a Board of Trustees “of their choosing”.

A 12-member list, including eight names submitted through students, has been sent to the UGC and the education ministry.

The list reportedly includes former Board of Trustees vice chairman Raihan, dismissed treasurer Iffat, and sacked accounts official Shiper.

Efforts were also made to include ousted faculty member Sayed Ferdous.

STUDENTS OBJECT TO NEW VC APPOINTMENT

The government appointed vice-chancellors in five private universities on Feb 11.

Farheen Hassan, from the Faculty of Business Administration at American International University Bangladesh, or AUIB, was made the vice-chancellor at Primeasia University.

However, the students wrote to the UGC against the appointment citing concerns over her nomination by former university officials.

Meanwhile, to ensure the continuation of academic activities, the university authorities have issued an office order appointing Prof Raihana Begum, dean of the School of Science, as the acting vice-chancellor.

The order was signed by university registrar Anisur Rahman on Feb 17.

WILL THE UNIVERSITY REBOUND?

Board of Trustees Chairman Md Nazrul Islam told bdnews24.com about the overall situation of the university, “The suspects embezzled more than Tk 300 million at different times. We’re working to get the amount back.”

“The university conducted an audit which found corruption and irregularities. We’re taking action against the corruption in the construction work of the permanent campus. The existing contract will be scrapped and soon the construction work will begin following an ‘open tender’ as per the rules.”

The irregularities have been reported to the education ministry and the UGC, while several cases have already been filed as per the board’s decision, he said.

“More cases are in process. We aim to eliminate all corruption and irregularities and restore normal academic operations at the university soon,” he added.

UGC TO TAKE ACTION AFTER PROBE

A probe panel from the UGC is scrutinising the irregularities at Primeasia University.

UGC’s private university wing member Prof Mohammad Anwar Hossain said, “Recently, they appointed a new vice-chancellor. We’ll coordinate with the university and reach a decision following a probe of the irregularities.”

[Writing in English by Sabrina Karim Murshed; editing by Arshi Fatiha Quazi]