ACC withdraws charges against Khalidi. Who will take responsibility for harassment, he asks

Khalidi hopes the country moves away from the culture of ‘using state institutions’ as tools for harassment through false cases

Toufique Imrose Khalidi

Five years of ‘harassment’ have finally come to an end, says bdnews24.com Editor-in-Chief Toufique Imrose Khalidi as the Anti-Corruption Commission has withdrawn a case against him on charges of acquiring assets through ‘fraudulent means’ and laundering money.

Following a hearing on the ACC's petition, Judge Mohammed Ash-Shams Joglul Hossain of Dhaka Metropolitan Senior Special Judges Court on Thursday issued an order to clear Khalidi of all charges.

The written decision to the effect was signed by the judge on Sunday.

Khalidi said he was pleased with the ACC and the court's decision in his instant reaction, but bemoaned the "harassment" he had been subjected to over the years.

"For years, a completely false and baseless accusation was raised against me and against us, causing needless harassment, social disgrace, and deep, long-term institutional and business damage. It was like throttling a news organisation. Who will take responsibility for all of this?" he asked.

"I have said before that such false cases ultimately undermine and discredit state institutions, making them ineffective. It is time for the country to move away from this culture of using state institutions as weapons of harassment through false cases," he added.

ACC Public Prosecutor Mahmud Hossain Jahangir submitted the case withdrawal letter, signed by Commissioner Jahurul Haque, to the court.

The letter said the decision was made in light of Section 10(4) of the Criminal Law Amendment Act, 1958 and Section 495 of the Code of Criminal Procedure.

As a result, the allegations against the defendant should be withdrawn, and any freeze on their assets or restrictions on their overseas travel should be lifted.

After the hearing, the judge ruled that Khalidi be acquitted of the charges.

The court also lifted the requirement for him to obtain permission before leaving the country.

The judge ordered the release of bank accounts belonging to Khalidi and bdnews24.com, which had previously been frozen.

WHAT THE CASE SAYS

The authorities moved swiftly after bdnews24.com announced the investment by LR Global in a report on Oct 13, 2019, saying it will spend the money on the expansion of news automation and creativity.

The disclosure first prompted a decision from the Securities and Exchange Commission to “halt” the deal. For its part, the ACC soon afterwards weighed in, leaving certain bank accounts of Khalidi and bdnews24.com frozen.

After receiving a letter from the anti-graft agency, Khalidi appeared in the ACC twice in November 2019.

The letter received by Khalidi on Nov 5 said his statement was required in connection with the allegations of “transferring a huge amount of money” by “hiding location by himself and bdnews24.com”, and “earning wealth inconsistent with his known income through illegal activities”.

The ACC case states that Khalidi sold 20,000 of his shares in bdnews24.com for Tk 250 million and raised another Tk 250 million from issuing another 20,000 shares to LR Global.

The commission alleges that the actual value of the 40,000 shares is Tk 4 million, but each was sold at Tk 12,500, with Tk 12,400 as premium.

But Khalidi said BRAC EPL valued bdnews24.com at Tk 3.71 billion.

The case alleges the asset valuation report was “fake” and out of the Tk 500 million investment, Tk 420 million was deposited into accounts with HSBC, Eastern Bank, Southeast Bank and Mutual Trust Bank.

“Toufique Imrose Khalidi obtained the movable asset in an illegal way, which is inconsistent with his known income,” the ACC alleges.

WHAT KHALIDI SAYS

After the ACC began examining the so-called allegation of corruption, Khalidi in an article detailed the circumstances under which bdnews24.com entered the deal, where the money was, why he himself sold some of his shares and what happened after the deal.

“The matter has been probed by more than one state agency—publicly as well as, may I dare say now, behind the scenes—because the allegations or rumours/gossips (spread through social media and other means in the lead-up to the ACC move) were of serious nature,” he wrote.

“The cruellest part was, those who orchestrated it all knew all too well that money only changed hands between two companies incorporated in Bangladesh and operated under Bangladesh laws. Yet the vengeful and powerful people were given free rein when they acted from behind the stage. And those who helped them spread the propaganda knew it too. And, again, those who prepared “reports” meant for people at the very top were fully aware of it too.”

“Whose purpose are they trying to serve by trying to harm arguably the lone independent news publisher in Bangladesh which has been credited with many firsts, globally and nationally?

“Why was there an attempt to tarnish the image of both bdnews24.com and the individual who runs it?” he asked.

Regarding the charge sheet which eventually was not taken into cognisance by the court, he said: “Each and every word is either false or a cruel misrepresentation of facts.”

There were two cognisance hearings in the previous three months, and the ACC petition seeking withdrawal of the prosecution itself came before a third scheduled for Sept 29.

“The whole affair has been so ugly that anyone who would suffer such a situation would lose faith in Bangladesh’s institutions which are meant to dispense justice.”

THE LEGAL BATTLE

The written text changed in every step taken by the ACC – from investigations to summons to the first information report, a practice that a lawyer for Khalidi compared with the “tactic of moving the goalposts” by the prosecutor.

In 2020, the ACC went to the Supreme Court, challenging the bail Khalidi secured from the High Court, but the Appellate Division dismissed the ACC’s petition and rebuked it for "wasting the court's time".

Khalidi, who consistently denies any wrongdoing, petitioned the higher court for quashment of the case in the second week of April 2022, describing it as “unsubstantial and repressive”.

Although bdnews24.com had publicised the investment in detail, the ACC accused Khalidi of gaining wealth beyond means. The ACC itself referred in the case to the reports published by bdnews24.com on the asset manager’s investment.

The anti-graft agency sought time on several occasions after Khalidi pleaded with the High Court in April 2022 that the case be quashed. The hearing was also deferred several times as no lawyer from the ACC was present for hearings.

On Thursday, the judge finally decided to dismiss the case on Thursday.