Bulks of stocks reveal Matiur’s breach of laws

Various discussions and controversy going on about the assets of NBR official Dr. Matiur Rahman. It is known from a recent interview of Matiur with a private television channel that Matiur removed from NBR post yesterday (June 23) and attached to the finance ministry, admitted that he used his expertise and insights about the capital market to buy shares of ailing but potential companies to make financial gains.

Matiur also worked at Chattogram Customs and Large Taxpayer Unit (LTU), VAT, told a private TV channel on Wednesday that he started investing in the capital market in 2008.

It is alleged that this government official has built a mountain of wealth through corruption. Information about his huge wealth has already come out. The Anti-Corruption Commission (ACC) and several intelligence agencies of the government have gone into the field to find out information about Matiur's known and unknown income assets.

According to reports in various media, apart from Mymensingh and Trishal in Narsingdi, he has a lot of wealth including resorts, shooting spots, bungalow houses, land. His wealth is also in Barishal.

It is known that his first wife Laila Kaniz was made upazila chairman by spending a lot of money. Second wife is a bank officer. They also have mountains of wealth in their names. It has been revealed that the viral young man who bought the sacrificial animal is the child of Matiur's second wife.

It is also known that he has houses not only in the country but also abroad. His son has a car collection of world famous brands. The Anti-Corruption Commission (ACC) has already started to inquire about these matters.

Matiur Rahman claims that all his assets are legitimate and acquired through profits from investments in the capital market. However, the investigation revealed something more.

Matiur Rahman was known in the stock market as a 'placement-hunter' of bad companies. He used to help bring such companies to the stock market in exchange for placement shares. Later, after listing in the stock market, he used to sell those shares and withdraw a large amount of profit.

It is known from several sources related to share market that he withdrawn profit of around 36 crores from five BO accounts opened in the name of himself, his son, daughter and wife from two brokerage houses based in Chattogram and Dhaka. Apart from this, more than 15 BO (Beneficiary Owners) accounts were found in the name of Matiur Rahman and his family members and close relatives.

Profit information was available from five BO accounts, but no confirmed information was available about the profit of the rest.

According to the relevant sources, out of a profit of Tk 36 crore, Matiur Rahman himself made a profit of Tk 4 crore, daughter Farzana Rahman Ipsita Tk 23 crore, son Ahmed Taufiqur Rahman Arnob Tk 8 crore and his second wife Shammi Akhtar Shibli withdrawn Tk 1 crore 34 lakhs of profit.

According to the information obtained from multiple sources, placement trade information have been found after the name of Matiur Rahman, his son Ahmed Taufiqur Rahman Arnob, daughter Farzana Rahman Ipsita, first wife Laila Kaniz, second wife Shammi Akhtar Shibli, sister Hawa Nur Begum, brother M. A. Kaium Hawladar, Nurul Huda in more than a dozen companies in the share market. Many organizations related to his interests have been traced to the placement trade.

The controversy over Matiur and his family's wealth comes amid ongoing investigations and public discussions about massive wealth of a number of other top current and former government officials and their family members.

An initial tally shows he and his company held more than 3 crore shares of at least 10 companies – but this figure may rise.

He also acknowledged that he made 'abnormally high' money from the shares of Fortune Shoes. He bought the company's shares at Tk 8 whose face value was Tk 10, and sold them at Tk 54 each.

Before a company is listed in the stock market, the owners of the company can issue new shares in the name of the persons and organizations of their choice. These shares are sold on paper at a face value of Tk 10. After a certain period of listing of the concerned company in the stock market, the holders of these placement shares sell their shares at a higher price. Thus a placement cycle orgaized by making huge profits. Whose main goal is to buy shares at a low price in the placement and sell them at a high price in the market to make a huge profit. One name discussed in this placement cycle is Matiur Rahman, who was at the top of NBR.

According to the government employment rules, government employees are not allowed to do business without the permission of the authorities. The government needs to look into whether he violated that rule or not. Apart from this, the Anti-Corruption Commission (ACC) should investigate the allegations about his (Matiur Rahman) huge wealth.

According to the IPO prospectus of Fortune Shoes, Matiur received 5 lakh shares of the company, which was 0.67 percent of the total shares of the company in its pre-IPO period.

His second wife Shammi Akter (Shibli) received 10 lakh shares; his daughter Farzana Rahman 16.50 lakh shares; and his son Ahmed Tawfiqur Rahman Arnob 9 lakh shares, according to the prospectus of Fortune Shoes.

He also received shares from ACME Pesticides, Associated Oxygen, C&A Textiles, Dominage Steel, Lub-rref (Bangladesh), Mamun Agro, ML Dyeing, Ring Shine and SK Trims, according to the company prospectus seen by The Daily Star.

He received 37 lakh shares from Acme Pesticides and 14.5 lakh shares from Associated Oxygen. His first wife Laila Kaniz Lucky had 4.5 lakh shares and his son Ahmed Tawfiqur Rahman Arnob 5 lakh shares from Associated Oxygen.

From a single company -- C&A Textiles -- he and his family members got 47.3 lakh shares.

Additionally, he received 88.83 lakh shares from SK Trims, 21 lakh shares from Kattali Textiles, 16 lakh shares from ML Dyeing, 10 lakh shares each from Mamun Agro Products and Ring Shine and 8 lakh shares each from Dominage Steel and Lub-rref (Bangladesh).

According to securities rules, any individual can get placement shares. Before getting listed with the stock exchanges, many companies sell placement shares to individuals, especially to friends and family.

Under the Securities Act, there are legal restrictions on anyone associated with the issue manager company buying shares of the company they brought.

When asked about Matiur Rahman's share trading from a government position, former chairman of BSEC Faruq Ahmed Siddiqi told that according to the government employment rules, government employees have no opportunity to trade without the permission of the authorities. The government needs to look into whether he violated that rule or not. Apart from this, the Anti-Corruption Commission (ACC) should investigate the allegations about his (Matiur Rahman) huge wealth.

Faruq Ahmed Siddiqi also said that whether he (Matiur Rahman) was involved in that type of business in the stock market, whether he violated the Securities Act or not, it is also necessary to look into it.