ACC investigating both individuals for abusing their power, engaging in bribery

Preliminary investigations revealed information about their assets worth hundreds of crores of taka

TDS Desk:

Allegations have emerged about Matiur Rahman, infamously linked with the goat scandal, accusing him of amassing illegal movable and immovable assets worth hundreds of crores of taka while serving as a government employee.

Media reports suggest that he abused his power to build a mountain of wealth. As a result, he has been removed from his position at the National Board of Revenue (NBR) and also from the board of directors of the state-owned Sonali Bank.

As discussions about Matiur intensify, news has surfaced about corruption involving Quazi Abu Mahmud Faisal, who has recently been transferred to Bogra.

The Anti-Corruption Commission (ACC) is investigating both individuals for abusing their power, engaging in bribery, acquiring illegal assets, and money laundering.

What is ACC doing about Matiur and Faisal?What is ACC doing about Matiur and Faisal?

Preliminary investigations have already revealed information about their assets worth hundreds of crores of taka.

Historically, several NBR officials have been accused of providing advantages to certain groups and engaging in bribery and corruption. Businesspeople frequently complain of harassment if bribes are not paid, and there are allegations of officials extracting unethical benefits by harassing taxpayers through various tactics.

COMMON ALLEGATIONS

In 2015, during the tenure of Najibur Rahman as NBR chairman, Matlub Ahmad, the then-president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), alleged at an event that it cost Tk3 in harassment to pay Tk1 in tax.

Before and after 2015, although there was talk about NBR officials’ corruption from the business community, no significant steps were taken until the infamous goat incident.

On June 9, the Bangladesh Jewellers Association (Bajus) claimed in a press conference that to collect Tk10 in VAT, Tk90 in bribes had to be paid to the NBR. They urged the NBR to come out of this culture.

A few days earlier, on May 23, FBCCI President Mahbubul Alam mentioned at an event that the NBR was harassing businesses in the name of tax collection. He emphasized the need for automation of the entire revenue collection process to prevent harassment.

At a meeting of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in early June this year, President SM Mannan Kochi raised allegations of harassment by many customs officials, saying that they were obstructing imports and exports and harassing entrepreneurs. He demanded legal action against these officials.

The Great Escape: How did Matiur dodge ACC 4 times?The Great Escape: How did Matiur dodge ACC 4 times?

Meanwhile, the issue of harassment by the NBR and customs is to be brought to the cabinet, as announced by Textiles and Jute Minister Jahangir Kabir Nanak on May 13 during a courtesy meeting with BGMEA representatives at the Secretariat.

In 2018, the ACC identified 19 sources of corruption within the Customs, Excise, and VAT Division under the NBR.

The ACC team mentioned that lax administrative actions against dishonest officials and employees encouraged corruption. The commission made 26 recommendations to prevent corruption and sent the report to the Cabinet Division.

NAMES PREVIOUSLY LINKED WITH CORRUPTION

In February of this year, the NBR dismissed Assistant Tax Commissioner Abhijit Kumar for taking bribes. He was arrested by the ACC in 2019 with a bribe of Tk50,000.

On June 11, the ACC filed a case against former VAT commissioner of the Large Taxpayer Unit (LTU) of the NBR, Wahida Rahman Chowdhury, accusing her of illegally waiving Tk152 crore in VAT for four mobile operators.

According to the case details, VAT was waived for Grameenphone, Banglalink, Robi, and Airtel.

The ACC is also investigating former assistant commissioner of Customs, Mokhlesur Rahman, and is expected to file charges against him soon.

In January 2017, three NBR officials were dismissed on corruption charges. They were assistant revenue officers Mojibur Rahman Sarkar, GM Shahjahan, and revenue officer Golamur Rahman.

Mojibur Rahman Sarkar was sent into forced retirement for his involvement in moving gold from the warehouse at Hazrat Shahjalal International Airport in Dhaka.

GM Shahjahan was caught red-handed by the ACC in 2008 while taking an illegal payment of Tk60,000 in the Feni divisional office of Excise and VAT. An additional Tk31,200 was found during a search. He was dismissed after being found guilty of the allegations. Golamur Rahman was also dismissed on similar charges.

In Magura, two VAT office revenue officers were dismissed for demanding Tk1 crore in bribes and accepting Tk20 lakh from Vision Drugs Limited by fabricating a fake case.

Assistant Revenue Officer Khandakar Mukul Hossain was arrested at Benapole Customs House while attempting to smuggle nearly Tk23 lakh.

In 2016, the NBR also punished three officials for corruption. They were Rangpur Tax Commissioner Animesh Roy, Additional Tax Commissioner Md Riazul Islam, and Deputy Tax Commissioner Mohammad Amirul Karim Munshi.

In that year, Assistant Tax Commissioner Safi-ul-Alam was dismissed over corruption in the selection of the highest taxpayer.

Several other officials, including Customs Commissioner M Hafizur Rahman, Assistant Tax Commissioner Zahidul Islam, and Deputy Director of Dhaka Tax Inspection Department Bidyut Narayan Sarkar, were also dismissed or penalized for corruption.

SOLUTIONS

This correspondent could not get a comment on allegations and actions against officials despite several attempts to contact NBR Chairman Abu Hena Md Rahmatul Muneem over the phone.

In this context, Siddiqur Rahman, former vice-president of FBCCI, former president of BGMEA, and secretary of industry and commerce at the Bangladesh Awami League, said: “The prime minister has adopted a zero-tolerance policy against corruption, and we are witnessing its implementation. High-ranking officials are not escaping after committing corruption.”

He emphasized that these corrupt officials should be brought under the law and given exemplary punishment.

Dr Ahsan H Mansur, executive director of the Policy Research Institute, said that the number of corrupt officials like Matiur is high in the NBR, estimating that over 90% of employees are like him. “This fear is why people do not want to pay taxes to the government.”

He said: “Reducing the influence of corrupt officials would increase government revenue. Since their influence will not diminish, the system needs to be changed.”

Dr Ahsan Mansur recommended implementing automation as NBR field officials are accustomed to illegal transactions and do not want to fully transition from a paper-based system.