The country’s largest business conglomerate Bashundhara Group has urged the interim government headed by Nobel laureate Prof Muhammad Yunus to take steps to stop defamatory statements and propaganda by authorities concerned and entities against it in the form of a media trial, in a bid to safeguard the economy of Bangladesh and livelihoods of millions of families related to it, including journalists.
In a letter addressed to Chief Adviser Prof Muhammad Yunus, Bashundhara Group Chairman Ahmed Akbar Sobhan said a press release disseminated by the Criminal Investigation Department (CID) and subsequent news reports have brought false and fabricated allegations against the Bashundhara Group.
He said the allegations made without any investigation whatsoever or without following the due process of law have severely tarnished and damaged the group's reputation and caused significant harm to its business operations as well as adversely affected thousands of employees and their family members whose livelihood are directly associated with Bashundhara Group.
“We request your Excellency (Chief Adviser) to instruct the authorities concerned to withdraw and remove from its website the said press release and to do what is needed to mitigate and prevent the spread of disparaging and defamatory misinformation that are being purposefully disseminated among the public in the country and abroad,” he added.
The Bashundhara Group chairman further said such an outcome of spreading false allegations and propaganda would critically harm the banking and financial sector, leading to a ripple effect in the national economy and potentially result in massive job losses and unemployment for hundreds of thousands of people, including journalists of the media outlets owned by the group.
“Moreover, it would adversely injure Bangladesh's international credit rating and costs of doing business, affecting our trade and foreign currency reserves in an economy that is already struggling with inflation and foreign exchange rate fluctuations,” he said.
“Throughout its 40-year-long journey, Bashundhara Group has consistently complied with rules and regulations of the country, with no history of loan defaults or misappropriation of public money,” he added.
Below is the full text of the letter:
Hon’ble Chief Adviser
On behalf of Bashundhara Group, we extend our sincere congratulations and best wishes to the interim government formed under your esteemed leadership following the successful revolution driven by monumental sacrifices made by students and citizens to shape a new Bangladesh.
Background
Bashundhara Group is the largest business conglomerate in Bangladesh having global reputation that has been playing a pivotal role in the county's economic development across diverse sectors and industries, including real estate, oil and gas, bitumen, paper, cement, shipping industry, consumer foods, coal import, and many others. There are several other upcoming projects, such as gold refinery, chemical, steel, and seed crushing plants, that are in advanced stages of development and awaiting commissioning or commercial operation, which will play a critical role in Bangladesh's economy. Several publicly listed companies also belong to this Group. Throughout its 40-year-long journey, Bashundhara Group has consistently complied with rules and regulations of the country, with no history of loan defaults or misappropriation of public money.
However, on September 5, 2024, the Criminal Investigation Department (CID) quite unfortunately issued a press release (enclosed herewith) that was widely circulated across the media, accusing Bashundhara Group, its Chairman and Managing Director, of serious crimes such as land grabbing, money laundering, and smuggling, without any lawful basis whatsoever. The dissemination, publication, and circulation of these unfounded vague allegations, made without any investigation what so ever or without following due process of law, have severely tarnished and damaged the Group's reputation and caused significant harm to its business operations as well as adversely affected thousands of employees and their family members whose livelihood are directly associated with Bashundhara Group.
Misleading Allegations
The aforementioned press release disseminated by the CID and consequent news reports allege that Bashundhara Group illegally seized a total of 1,016 acres of land, including 800 acres of government land and 216 acres of Bhawal Raj Estate land, and only parts of its residential area project land have Rajuk approval whilst the maximum proportion thereof have been illegally developed on private and public land. However, the solely jurisdiction for ascertaining the credibility and validity of such serious allegations is solely vested on courts of law in civil suits. Till date, no judgment has been pronounced before any court or authority against Bashundhara Group regarding such baseless allegation of land grabbing.
The press release and news reports also allege that Bashundhara Group siphoned money abroad through availing loans by way of cheating and forgery. Such serious accusations should only be made after thorough investigation and concrete evidence, not mere speculation. These baseless allegations, fabricated by vested quarters and recklessly disseminated by CID, have then been irresponsibly published by media outlets without verifying their credibility, violating journalistic standards. No allegations of wrongdoing have ever been raised by any banks or financial institutions, including the central regulatory bank. On the contrary, Bashundhara Group has always maintained a flawless record of loan repayments without any instance of default over its 40 years of history. Moreover, the valuation of the lands mortgaged to banks as collaterals against its loans has multiplied manifold over the years, keeping the banks secured at all times.
Furthermore, the Group has never imported bitumen, yet it was accused of trade-based money laundering related to bitumen imports. Moreover, the vague and fabricated accusations of gold smuggling and tax avoidance without any lawful basis or credible evidence whatsoever, disseminated by the CID and circulated by the media by way of yellow journalism even before its very investigation, have undermined both the Group and the millions of people associated with it.
In a democratic society, individuals and organizations are presumed innocent until proven guilty. Unfortunately, the CID's press release and subsequent media coverage disregarded this basic principle, presenting Bashundhara Group’s though it had already been convicted of these crimes, even before preliminary investigation. This has caused considerable reputational damage, disrupted business activities, and created confusion among our trade partners and suppliers, both locally and internationally. Such actions are also disrupting the Group's trade and procurement of raw materials and essential commodities through letters of credit, pushing Bashundhara Group and the country towards unavoidable turmoil.
Economic Contributions and Risks of Adverse Impact
Since its establishment in 1987, Bashundhara Group has contributed significantly to Bangladesh's economy, employing thousands of workers and supporting the livelihoods of countless families. The Group's real estate, bitumen, and cement projects are crucial to the country's housing and infrastructural development, while paper, food, shipping, and trading of essential commodities have been playing a critical role in ensuring the country's food safety and seamless supply of essential commodities. Its oil & gas as well as LP gas projects are critical for ensuring energy security of the nation. Furthermore, Bashundhara Group's upcoming ventures in gold refining, steel, and chemicals industries, if successfully implemented, will further reduce dependency on imports, saving and preserving much¬ needed foreign currency reserve.
However, the negative media coverage based on unfounded blanket allegations without any lawful basis whatsoever has had a detrimental impact on our business, leading to declining cash flow, loss of revenue, and creating obstacles with foreign suppliers as well as local banks and financial institutions. Existing and upcoming projects awaiting commercial operation may also become sick. Consequently, it will also affect the significant contribution of companies belonging to the Group to the Government's exchequer, by way of tax and VAT. Moreover, thousands of investors and millions of construction workers in Bashundhara's housing projects will suffer irreparable loss and damages.
If the continued propagation of these unfounded blanket allegations against Bashundhara Group and its Chairman or Managing Director are allowed to continue, it could push Bashundhara Group in to an unnecessary financial crisis, with disastrous consequences not just for Bashundhara and all its business units but for the broader financial sector, business community and economy at large. If the Group's reputation continues to besmeared, there is a real risk of loan and credit facility defaults-something that has never occurred in Bashundhara's history. Such an outcome would critically harm the banking and financial sector, leading to a ripple effect on the national economy and potentially resulting in massive job losses and unemployment for hundreds of thousands of people. Moreover, it would adversely injure Bangladesh's international credit rating and costs of doing business affecting our trade and foreign currency reserve in an economy that is already struggling with inflation and foreign exchange rate fluctuations.
Notably, Bashundhara Group owns the country's largest media outlet, East West Media Group PLC, encompassing Bangladesh Pratidin, Kaler Kantho, The Daily Sun, News24, banglanews24.com, Radio Capital FM as well as Bangladesh's only dedicated sports channel T Sports. Negative public image of the conglomerate will also injure the press and media, hundreds of journalists and media personalities associated with the media house as well as the public's right to information.
It is mention-worthy that since 1980s when Bashundhara Group first started its modest journey, the Group's primary objective has been the advancement and prosperity of its business ventures, adhering to its corporate credo "For the People, For the Country." Our 40-years long journey has witnessed succession of many distinct governments. Throughout this period, we have attempted to diligently cultivate and maintain positive relationships with all levels of government and stakeholders to ensure business continuity. Nevertheless, none of the promoters and business leaders of the Bashundhara Group, including its shareholders and directors, have ever held any political positions or had any political involvements whatsoever, standing in stark contrast to other business conglomerates. Whilst Bashundhara Group is fully committed to work closely with the Interim Government headed by your Excellency, widespread attempts are being regrettably made to purposefully undermine our unreserved commitment to positively contribute to the country's socio-economic development and growth.
Humble Request for Intervention
Against the backdrop of the above facts, it is crystal clear that the press release of CID and the consequent news publications are unjustified and are unnecessarily causing irrecoverable loss and damage to the businesses of the Group, its domestic and global reputation as well as the overall economy of the country. Hence, we request your Excellency to instruct the concerned authorities concerned to withdraw and remove from its website the said press release and to do the needful for mitigating and preventing the spread of disparaging and defamatory misinformation that are being purposeful disseminated amongst the public at large with the country and abroad.
We trust in your leadership to ensure that justice and fairness prevail.
BDST: 1440 HRS, OCT 04, 2024
