Court to decide about ACC chargesheet against Toufique Khalidi on Jun 10

“The charges are so laughable, illogical, and baseless that the issue will raise serious questions about the credibility of the ACC and other state institutions involved,” Khalidi has said

A Dhaka court will decide on Jun 10 whether to admit Anti-Corruption Commission’s chargesheet against bdnews24.com Editor-in-Chief Toufique Imrose Khalidi on allegations of gaining wealth beyond means and laundering money.

Dhaka Metropolitan Special Judge Ash Shams Zaglul Hossain set the date after the ACC submitted the chargesheeet on Sunday, ACC Court Inspector Akkas Ali said.

Khalidi has consistently denied the accusations. “The charges are so laughable, illogical, and baseless that the issue will raise serious questions about the credibility of the Anti-Corruption Commission and other state institutions involved,” he has said.

The legal tangles arose after bdnews24.com announced that an asset management company had invested Tk 500 million in the leading news publisher in October 2019. The ACC then weighed in, examining the deal and subsequently starting a case against Khalidi 8.5 months later.

The case alleges the asset valuation report was “fake” and that out of the Tk 500 million investment, Tk 420 million was deposited into accounts with four banks.

Khalidi obtained the movable asset in an “illegal way” and it is “inconsistent with his known income”, the ACC alleged.

In the three years and nine months since coming up with that claim, the ACC attempted to have Khalidi’s bail cancelled time and again, but failed.

Rather, the High Court questioned the case in response to Khalidi’s plea. It issued a rule asking the ACC why its case against the bdnews24.com editor-in-chief will not be quashed.

Before the High Court disposed of the rule, the ACC recently called its Deputy Director Gulshan Anowar Pradhan, who is investigating the case, from his current workplace Mymensingh, and asked him to submit the report.

He filed the chargesheet before Eid-ul-Fitr and it was approved in the commission meeting on Apr 18.

The ACC now says the bdnews24.com editor-in-chief has Tk 435.76 million in different accounts with HSBC, Eastern Bank, Southeast Bank and Mutual Trust Bank. The frozen funds “do not have any legal source” and Khalidi obtained them through “illegal means”, which is “inconsistent” with his declared earnings.

The ACC approved the chargesheet under section 27 (1) of the 2004 Anti-Corruption Commission Act and sections 4 (2) and 4 (3) of the 2012 Money Laundering (Prevention) Act.

In his instant reaction to the approval of the chargesheet on Apr 23, Khalidi said: “The long delays and outcome so far mean that justice has already been denied in this particular instance and that this process will lead to an erosion of faith and confidence in these institutions among members of the public.

"We shall however continue to repose our trust in our courts and learned judges in resolving the matter. I am confident that justice will prevail.”

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.

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 antigraft 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.

ACC counsel Khurshid Alam Khan in June 2022 had asked for time, saying the commission would submit an investigation report “soon”.

More than a year later, in August 2023, Khurshid said the ACC needed more time as it was not prepared for the hearing.

As the ACC lawyer was not present on Oct 10, the hearing was deferred again. The ACC lawyers sought more time on Oct 17, presenting a letter from the official investigating the case.

A judge at the time said he saw no problem in granting Khalidi reprieve from court appearance while the investigation was ongoing.

The ACC lawyer argued that such an order may hamper the investigation.

The judge then deferred the order by eight weeks.

In January, after hearing the writ petition filed by Khalidi, the court issued a rule with orders in favour of Khalidi, asking why the case against him will not be quashed.

The ACC chairman and Dhaka’s deputy commissioner have been ordered to respond to the rule within four weeks.

The court also passed an order excusing Khalidi from appearances at hearings until a chargesheet is filed.