NEWS UPDATES
December 2008
Dhaka, December 23, 2008: A foreign national volunteered the information the Anti-Corruption Commission (ACC) needed to get at bribery involving BNP Chief Khaleda Zia's younger son Arafat Rahman Koko.
In a five-page statement, he said he would aid the anti-graft body in its probe on condition that his identity would be kept secret and safety ensured.
Introducing himself as “a chartered secretary…married with two children”, he also said he would not come to Bangladesh to testify against anyone for fear of reprisal.
On this understanding, the ACC sent an official to Singapore to explore the official procedures there to investigate graft. It also consulted a local legal expert on how to go about the task.
In the following days, investigators at home and abroad gathered that China Harbour Engineering, a container handling firm, transferred huge sums to Koko's account with the Singapore branch of French bank Credit Industrial et Commercial.
They also found out about ZASZ Trading and Consulting Pvt Ltd, the firm Koko owns in Singapore jointly with a Singapore national.
Close on the heels of this scandal came the news of his involvement in global corruption of German multinational Siemens AG.
As the international media ran stories how the corporate giant and its subsidiaries bribed government officials to win contracts in countries across the world, Koko's name came up in the Bangladesh part.
According to sources, the former prime minister's son received at least $1,80,000 (Tk 1.26 crore) as bribe in September 2005 for helping Siemens Bangladesh to win the contract to set up mobile network for state-run operator TeleTalk.
The kickbacks were deposited in the account where the money from China Harbour was stashed.
The Singapore authorities eventually froze the account with over Tk 11 crore.
Asked about Koko's involvement in Siemens bribery, ACC Chairman Hasan Mashhud Choudhury yesterday said they would look into the matter.
The lid on Siemens' global corruption came off as the German conglomerate admitted in the US District Court in Washington DC recently that it had resorted to bribery to win foreign contracts.
Siemens AG on December 15 agreed to pay nearly one billion euros ($1.4 billion) to US and German authorities to settle the scandal.
Citing court observations, the New York Times on December 21 reports, “Siemens paid $5million in bribes to win a mobile phone contract in Bangladesh, to the son of the prime minister at the time and other senior officials.”
The US district court in its sentencing memorandum described the Siemens corruption in Bangladesh.
It said that between 2000 and 2002, the Bangladesh Telegraph and Telephone Board (BTTB), state-owned telecommunications authority, conducted three open tenders for a mobile telephone project that was ultimately awarded to Siemens.
In the first tender, Siemens was left off for technical non-compliance. The tender was however cancelled anyway.
The second tender held in 2001 too was cancelled. After a change of government that year, BTTB floated the third tender that initially saw Siemens disqualified from the bidding.
Teamed up with Siemens Bangladesh and Siemens Mobile Communications S.p.A. (then a Siemens subsidiary located in Milan, Italy), the company ultimately won part of the contract in June 2004.
Siemens Bangladesh knew that their 'business consultants' were passing along some or all of the money to senior government officials.
In September 2004, Siemens Bangladesh learned that one of the 'consultants' had moved to the US. After that, it continued to pay his consultation fees to an account in Hong Kong.
In 2003, Siemens Bangladesh paid at least $16,000 directly to government officials or their relatives. The payments were recorded as “consulting fees” and other seemingly legitimate payments on Siemens' books and records.
Meanwhile, ACC sources said the amount Koko received for helping Siemens Bangladesh to win the Tele Talk deal was paid in his Singapore account in the name of his company ZASZ.
The foreign citizen who offered clues to Koko's bribery told the ACC that ZASZ was incorporated sometime in April 2004. He was introduced to Arafat Rahman Koko by an official from Singapore-based QC Shipping.
The official told him that Arafat wanted to set up a company in Singapore and whether he [the foreigner] would like to help him in incorporation of his company there.
The QC official also said that Arafat, unlike his brother, is not involved in politics, and that he means business.
After meeting Koko, the foreigner agreed to work for him. He helped him have his company incorporated on April 10, 2004.
He also described how Koko's joint account with a Singapore national was opened. The Singaporean was included as the bank needed a local signatory.
Dhaka, Dec 22 — The Anticorruption Commission on Monday dismissed the BNP's allegation that the news about the money laundering by former prime minister Khaleda Zia's younger son Arafat Rahman Koko was meant to equip the political rivals with a weapon ahead of the general elections.
"Not motivated by any purpose, the ACC has gathered information that Arafat Rahman Coco has illegal money amassed in a Singapore bank," ACC chairman Hasan Moshud Chowdhury said.
On Thursday the ACC said it had information on the deposit of about Tk 11.5 crore lying in his name with a foreign bank.
On the following day, the BNP lodged a protest saying the ACC gave "a sword in the hands of the opponents on the eve of the election."
"The allegation is concocted," BNP statement claimed.
Asked whether the allegation was brought against a party on the eve of the election, Hasan Mashhud replied in the negative.
"After a prolonged enquiry, the ACC became hundred percent sure about the fact. There is nothing to be surprised if Siemens is involved in the matter of Coco."
He further said, "The ACC is looking into the money laundering case as an acid test. This is for the first time that, through the mutual legal assistance request under the United Nations Convention against Corruption, this information was unearthed.
"We believe it will be possible to file a case in this connection in a few days".
Asked if his comment, as many including a leading lawyer fear, could affect the election, the ACC chairman said, "Everyone in the country is free to express their views. But Anticorruption Commission is not an electoral body and that political activities will be affected due to the operations of the commission is not acceptable."
He further said, "On demand by the Bangladesh government, the attorney general of Singapore gave this information on money laundering on September 30. After a wide enquiry, the ACC became certain about it. Besides, we have waited for sometime since there was a case filed against Siemens in the USA."
Hasan Mashhud said, "The comment that the activities of the commission is being directed against the innocent persons is not correct. Saying so points to a bid to damage the image of the Anticorruption Commission."
He further said, "We have come to know that the [Coco] has appointed a leading lawyer so that the money of the frozen account cannot be returned to the country."
The commission gave journalists a brief account of the ACC activities in a year and also the state of the present cases.
The ACC said Coco and some of his cohorts in Singapore set up a company called ZASZ on April 10, 2004. A huge amount of Singaporean dollars was transacted with ZASZ by the China Harbour Engineering.
"In the transaction cheques signed by Arafat Rahman were used."
ACC decided to follow legal suit in the matter of the frozen amount of 20.61 lakh Singaporean dollars and 2.615 lakh US dollars on the basis of the bank statement of transcation by Arafat Rahman.
ACC finds Koko's Tk 11cr stashed in S'pore bank
Dhaka, Dec 19, 2008: Arafat Rahman Koko, youngest son of former Prime Minister and the BNP Chairperson, Begum Khaleda Zia, has foreign currencies worth around Tk 11.43 crore deposited in a Singapore bank but he concealed its information in his wealth statement submitted to the Anti-Corruption Commission (ACC).
With the help of Singapore government the Anticorruption Commission came to know that Koko has 20.61 lakh Singaporean dollars and 261,000 US dollars. The ACC revealed the stunning information at a routine press briefing yesterday.
It also informed that the son of the former prime minister owns a firm named ZASZ Trading and Consulting Pvt Ltd in Singapore jointly with a Singapore national, who is Koko's paid service agent. The whole amount was deposited in the joint account of that firm at different times in 2005.
Non-resident foreigners cannot open a company in Singapore and has to have a Singaporean agent to do that, ACC sources said.
Interestingly, 17 days after anti-corruption drive was launched in Bangladesh, Koko transferred 20.13 lakh Singapore dollars (SGD) to an account with the Singapore branch of French bank Credit Industriel et Commercial from the ZASZ joint account.
Singapore government recently froze the ZASZ account and sent necessary documents to the ACC, prompting the commission to initiate legal procedures.
Of the amount, China Harbour Engineering sent about 18 lakh SGD to that account and the rest came from other sources. The performance of China Harbour Engineering in Bangladesh is questionable for reasons including delaying to carry out work on various pretexts.
ACC Director General (Admin) Col Hanif Iqbal told reporters that they received evidence and necessary documents that confirm Koko's ownership of the money.
"Legal procedures have already been initiated and the commission is currently enquiring the matter. Once the enquiry finds the allegations are true, legal proceedings will be taken against the persons involved and efforts will be made to bring back the money," Hanif said.
The ACC has already filed three cases against Koko.
He is a co-accused in the commission's first corruption case filed against Khaleda and 11 others for violating tender conditions in awarding container-handling job to indenting house Gatco.
Koko is also accused in a case for extorting Tk 1.20 crore over a few years.
The other case he is accused in is for amassing wealth worth Tk 2,23,18,245 and concealing information about properties worth Tk 11,20,145. Koko submitted his wealth statement to the ACC in January 2008, and the commission filed the case on April 23.
ACC sues 4-party candidate for Jhenaidah-2
Jhenaidah, Dec 14 – The Anticorruption Commission sued on Sunday Moshiur Rahman, former MP of BNP and four-party candidate for the Jhenaidah-2 seat, on charges of accumulating assets from unknown sources and concealing information about the wealth.
The case was filed by Mosharraf Hossain Mridha, assistant director of the Kushtia office of the ACC.
"The case against Moshiur Rahman has been lodged under clauses 26(2) and 27(1) of Anticorruption act." The case states that on June 5 Moshiur and his cohorts submitted a wealth statement of nearly Tk 7.73 crore to the ACC.
The ACC on investigation found that the total value of his wealth was at around Tk 8.17 crore.
The FIR also stated that Moshiur had concealed information of additional wealth of close to Tk 5.07 crore and illegally accumulated about another Tk 5.98 crore
ACC will face any challenge from political rule: chairman
Dhaka, Dec 01 – The Anticorruption Commission may be faced with challenges under the next elected government but is prepared to overcome any obstacles, said the ACC chairman on Monday.
"Many believe the work of the Commission will become difficult once a political government comes to power," Hasan Mashhud Chowdhury observed at a weekly press briefing.
"But, the Commission is prepared to face all kinds of possibilities," he affirmed.
"There have already been many efforts to influence the work of the commission. Due to various obstacles and legal wrangles, the Commission could not meet expectations, but it is up to the people to measure its success," he said.
"The Anticorruption Commission has been formed according to law and it will not be wise if attempts are made to curtail its power," cautioned Hasan Mashhud.
Cooperation from the law ministry, attorney general and others will be sought under the next elected government; at the same time, the public's involvement will be increased, to strengthen the ACC as a national institution, he said.
The chairman, responding to a question, said the ACC did not want to be associated with the upcoming election.
"This is outside the jurisdiction of the Commission and for this, the Election Commission is enough," he said.
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