BIPD's Tk1.8cr FDR stuck at Fareast Finance

Deposits of Tk1.8 crore of the Bangladesh Institute for Professional Development (BIPD) have been stuck at Fareast Finance and Investment Ltd for more than five years despite maturity, said officials.

The institute today organised a press briefing at the Economic Reporters' Forum in the capital regarding the matter. 

Director General of the institute, KM Mortuza Ali said, from 2016 to 2018, BIPD had opened six FDR (fixed deposit receipts) accounts worth a total of Tk1.8 crore at Fareast Finance. Despite the maturity of all the deposits by 30 May 2019, Fareast Finance has failed to make any payment or dividend to them.

He said BIPD had sent 56 letters so far to Fareast Finance, and got no response from the company since 2020.

Mortuza further said the institute also sought the central bank's intervention to help realise the money deposited with Fareast Finance. "So far, 36 letters and e-mails have been issued to the Bangladesh Bank governor and its Financial Integrity and Customer Services Department. But no reply has been received until now."  

Contacted, Muhammad Ali Zayrab, managing director of Fareast Finance, told The Business Standard that they are unable to refund the deposit of Bangladesh Institute for Professional Development due to legal complications.

"There were instructions from the National Board of Revenue (NBR) to freeze the accounts of the founding chairman of BIPD, along with some of its directors, as they were accused of money laundering."

Asked about the money laundering allegations, BIPD DG Mortuza said, "The individuals whose accounts were ordered to be frozen by NBR's Central Intelligence Cell were the directors of BIPD. 

"As they failed to pay back the prescribed share amount, they could not become directors anymore."

Acknowledging the freezing order by the NBR, he said withholding deposits of the organisation because of personal tax liability of its former directors is illegitimate.