ACC approves case against health sector contractor Mithu over Tk76cr illegal assets

The Anti-Corruption Commission (ACC) has approved a case against controversial health sector contractor Motazzerul Islam Mithu for allegedly amassing illegal assets worth around Tk76 crore.

ACC Director General Md Akhter Hossain confirmed the matter today (10 September).

According to the ACC's investigation report, Mithu, owner of Lexicon Merchandise and Technocrat, acquired immovable properties worth Tk18.40 crore through the purchase of agricultural land, leased plots, flats, and the construction of houses. 

In addition, he reportedly accumulated movable assets valued at Tk57.44 crore, including company shares and investments, vehicles, bank deposits, gold ornaments, furniture, and electronic items.

In total, his movable and immovable assets were found to be worth Tk75.85 crore.

The report further shows that Mithu's household expenditure amounted to Tk71.45 crore. Together, his assets and expenditures stand at nearly Tk147.30 crore. 

During the investigation, the ACC traced legal income source of Tk71.49 crore among his total assets and expenditures. This indicates that Tk75.80 crore of his wealth was acquired illegally, inconsistent with known income sources. 

Based on these findings, the ACC has decided to file a case against Mithu under Section 27(1) of the Anti-Corruption Commission Act, 2004.

Who is Mithu?

Mithu was known for providing substandard goods at exorbitant prices. Simultaneously, he amassed considerable wealth by invoicing for undelivered goods and supplying unnecessary items, according to the previous reports of TBS.

According to the ACC, evidence of Mithu's irregularities under contract has been discovered in several medical facilities, including Kurmitola General Hospital, Dinajpur Medical College Hospital, Rangpur Medical College Hospital, Dhaka Medical College Hospital, Barisal Medical College Hospital, Mugda General Hospital, General Hospital Moulvibazar, General Hospital Gopalganj, IHT Sylhet, Dhaka Dental College, Dhaka Dental Hospital, and Central Medical Stores Depot (CMSD).

Furthermore, the ACC has learned that Mithu, who stands accused of various irregularities and corruption, has allegedly funnelled significant sums of money to various countries, including the US, Australia, and Singapore, in addition to holding assets in various locations within the country.

In 2020, former CMSD director, Md Shahidullah before his death in Covid-19, alerted the government of his rampant corruption under the "Mithu syndicate." 

Intelligence agencies, the ACC, and other authorities took note of the issue, but Mithu fled Bangladesh in 2020 after complaints surfaced against him of corruption in health sector procurement.

According to the ACC, Mithu has more than ten houses, at least four flats, multiple plots and land in Dhaka's Uttara, Banani, Gulshan, Kalyanpur, Tongi and Rangpur.

Besides, he has huge investments in several companies and financial institutions.

Mithu, who is widely known as a health sector mafia, also linked to the N95 mask scam during the Covid-19. 

Back in the 2015-16 fiscal year, he embezzled around Tk200 crore in the name of buying medical equipment such as MRI machines for Dhaka Dental College and a number of hospitals across the country.