The Anti-Corruption Commission (ACC) has launched an extensive investigation into Meghna Group of Industries following allegations of laundering nearly Tk80,000 crore through under-invoiced imports and various financial irregularities.
Acting on the Commission’s formal approval, a three-member special investigative team led by ACC Deputy Director Ahsanul Kabir Palash was formed on 8 April to probe the allegations.
As part of the inquiry, the team has issued letters to several banks and relevant government departments, seeking financial documents and transactional data.
Initial findings have prompted the ACC to initiate proceedings for freezing and seizing all movable and immovable assets of Meghna Group chairman Mustafa Kamal and his immediate family.
The Bangladesh Financial Intelligence Unit (BFIU), under the Bangladesh Bank, had already directed the freezing of 31 bank accounts and three financial institution accounts belonging to Kamal, his wife and group vice-chair Beauty Akhter, and their children for 30 days from 10 April.
The ACC now plans to approach the court to extend the freeze order until the conclusion of the investigation.
The allegations are wide-ranging. According to the complaint, between 2000 and 2020, Kamal imported goods valued at Tk1,28,131 crore based on assessable value. However, the invoiced value as per letters of credit (LCs) amounted to only Tk48,368 crore.
This discrepancy suggests that approximately Tk79,762 crore may have been siphoned off through import-related under-invoicing—an act tantamount to massive tax evasion and money laundering.
The Commission had approved the investigation in its meeting on 13 March, subsequently forming the special inquiry team, which also includes Assistant Director Abdul Malek and Deputy Assistant Director Nizam Uddin. The officials are reportedly close to concluding the initial phase of data collection, which may pave the way for a court petition to maintain the freeze on accounts linked to the accused parties.
Allegations against Meghna Group are not new. The conglomerate stands accused of encroaching on Meghna river land for industrial construction, large-scale tax and VAT evasion, loan fraud, illegal enrichment, and money laundering—claims that have surfaced repeatedly over the past 16 years. Yet, no tangible action had been taken by any authority until now.
Sources within the ACC allege that Kamal leveraged his proximity to the now-ousted Awami League government to secure undue privileges. He reportedly filled in parts of the Meghna river to facilitate illegal constructions and obtained loans amounting to Tk8,000 crore from nine private banks using proxies and shell entities—most of which are unlikely to be recovered.
Complaints began to flood into the ACC following the change in government on 5 August last year. It is alleged that Kamal routinely undervalued imports of baby food products to dodge duties, thereby defrauding the state and laundering the differential abroad. Some complaints claim he presented himself as an Awami League loyalist to obstruct past ACC inquiries and shield himself from prosecution.
The Commission, under the restructured leadership of Dr Mohammad Abdul Momen since December, has reinvigorated its efforts to investigate high-profile financial crimes. Several special teams are now working diligently to probe charges of loan fraud, money laundering and unlawful wealth accumulation.
ACC sources revealed that since 2013, the group has intensified under-invoicing practices. While the Covid-19 pandemic temporarily reduced the volume of imports in 2020, resulting in a discrepancy of Tk264 crore between LC and customs values, the difference in previous years ranged from Tk1,200 crore to Tk1,600 crore annually. Given Bangladesh’s average tariff rate of 29.5%, importers can still profit from laundering money via hundi networks even after incurring an additional 3–5% cost.
Further allegations state that Kamal misappropriated Tk300 crore from compulsory insurance policies on Meghna Group’s fleet of 60–70 vessels and approximately 1,200 motor vehicles. The company allegedly embezzled Tk638 crore in bank commission dues and avoided paying Tk25 crore in stamp duty—funds legally owed to the state. The government is also said to have been denied VAT totalling over Tk95 crore, with total evasion on VAT and stamp duty reaching Tk405 crore.
The group is accused of defrauding nine private banks—Bank Asia, EXIM Bank, Al-Arafah Islami Bank, Dhaka Bank, Mercantile Bank, Jamuna Bank, Midland Bank, and Mutual Trust Bank—of at least Tk3,000 crore through loan scams. Kamal and his family reportedly possess vast wealth, much of it grossly inconsistent with their declared income.
In addition to heading Meghna Group, Kamal also serves as chairman of Bangladesh National Insurance Company (BNIC). Established in 1995 by Zakaria and his brother M F Kamal, BNIC later saw the inclusion of their sister Beauty Akhter and her husband Mustafa Kamal on the board. While the company initially ran smoothly, internal conflicts among directors led to divisions within Meghna Group.
Now at the helm of both the industrial conglomerate and BNIC, Mustafa Kamal finds himself at the centre of what could be one of Bangladesh’s largest corporate corruption scandals.
