Malaysia labour ‘syndicate’: Lotus Kamal’s family, 3 ex-MPs cleared of exploitation charges

Infograph: TBS

Highlights:

• CID calls allegations false, fabricated, motivated, recommends discharging accused
• CID urges legal action against plaintiff for filing false case
• 3 former AL MPs, ex-finance minister AHM Mustafa Kamal likely to be acquitted
• Plaintiff files no-confidence petition, expressing distrust in CID investigation
• Bangladesh reportedly agreed to Malaysian request to halt investigation
• Sector insiders fear impunity will encourage formation of similar syndicates

The Criminal Investigation Department (CID) has submitted its final report on a case against a recruiting agency syndicate accused of exploiting the Malaysian labour market, concluding that none of the accused were involved in corruption or human trafficking.

As a result, the alleged syndicate members, including two former Awami League and one Jatiyo Party lawmakers and family members of former finance minister AHM Mustafa Kamal – commonly known as Lotus Kamal –, are likely to be acquitted from the widely discussed corruption case.

The plaintiff has expressed distrust in the investigation report and applied at the court to file a no-confidence petition.

The development comes days after Malaysian news portal Malaysiakini reported that Bangladesh had agreed to Malaysian request to halt investigation into claims that a powerful syndicate exploited Bangladeshi migrant workers bound for Malaysia.

On 15 May, Bloomberg reported that Kuala Lumpur in a letter to the senior secretary of the expatriates' welfare ministry urged Dhaka to drop "unsubstantiated allegations" to help improve Malaysia's standing in the US State Department's annual trafficking-in-persons report.

Regarding the letter from Malaysia, Senior Secretary Neyamat Ullah Bhuiyan told The Business Standard, "I have no knowledge of this matter. If it has been reported in the international media, our advisers are handling it and have likely responded."

Regarding the chief adviser's visit to Malaysia from today, his Press Secretary Shafiqul Alam spoke to journalists at the Foreign Service Academy yesterday. When asked if the final report on the syndicate case was filed under pressure from the Malaysian government, he told TBS he had no information and advised contacting the adviser to the Ministry of Expatriates' Welfare and Overseas Employment.

Attempts to reach Adviser Asif Nazrul for comment were unsuccessful, as he abruptly ended the call and did not respond to follow-up WhatsApp messages.

Meanwhile, CID's Financial Crime Unit and the Anti-Corruption Commission are conducting separate probes and claimed to find evidence that syndicate members charged much higher than government fixed rate.

Sector insiders fear that if the culprits of the syndicate are freed from accountability and corruption charges, similar syndicates will form again, especially as Chief Adviser Muhammad Yunus is set to visit Malaysia from 11 to 13 August.

The reopening of Malaysia's labour market – closed to Bangladeshi workers since May last year following reports of recruiters charging five to six times the official migration cost – is expected to be high on the visit's agenda.

A senior official at Bangladesh High Commission in Kuala Lumpur said migration "will figure prominently in the talks", though no recruitment deal is expected to be signed.

"Dhaka will push for priority in hiring Bangladeshi workers in future, but the Malaysian market is saturated. We will also emphasise mid- and long-term strategies," the official told TBS.

Case against syndicate

On 3 September last year, Altab Khan, proprietor of Afia Overseas, filed the human trafficking case at Paltan Police Station against 103 individuals, accusing them of embezzling Tk24,000 crore through an organised syndicate.

The accused include former expatriates' welfare minister Imran Ahmed, former senior secretary Ahmed Munirus Saleheen, former MP Nizam Uddin Hazari, retired Lieutenant General Masud Uddin Chowdhury, Benjir Ahmed and Kashmiri Kamal with her daughter Nafisa Kamal, wife and daughter of former finance minister AHM Mustafa Kamal. At least 100 recruiting agency owners are also named.

Former expatriates' welfare minister Imran Ahmed was arrested in October in connection with the case.

CID Inspector Md Russell of the Human Trafficking Unit, who investigated the case, said he submitted the final report to the court on 15 July. "We filed the report because no evidence could be established," he told TBS, declining to comment further on the matter.

Plaintiff's no-confidence petition

The plaintiff's no-confidence petition application against the report alleges that the accused, as part of this syndicate, influenced the police to transfer the investigation to a preferred CID unit without consulting him or seeking his input. This, he claims, was intended to benefit the accused and obstruct the inquiry.

"During the investigation, the officer had no contact with me and was clearly influenced by the accused. Out of hostility and malice, he submitted a false and fabricated report, prepared or dictated by the accused," the petition states.

Plaintiff Altab Khan said he will submit the petition to the court on 4 September scheduled for hearing. 

Md Fakhrul Islam, former joint secretary of the Bangladesh Association of International Recruiting Agencies (Baira), said they hope the Malaysian labour market will reopen free from syndicate influence during the chief adviser's Malaysia visit.

"It's deeply troubling that moves appear to be shielding those connected to the syndicate. This sends a bleak message for the future," he told The Business Standard.

Interpol letter to Malaysia

The plaintiff in his petition further added that all necessary evidence is available. "The Interpol letter confirms the allegations' validity. Numerous reports have appeared in both domestic and international media."

He referred to a letter from Interpol's National Central Bureau (NCB) in Dhaka dated 24 October, which requested assistance from Malaysian police to arrest two alleged masterminds – Bangladeshi-origin Malaysian citizen Md Aminul Islam (Amin Nur) and former Baira secretary general Mohammed Ruhul Amin – accused of human trafficking and extortion.

"Both accused are involved in this syndicate's human trafficking and extortion activities. Their arrest and interrogation will uncover the core of the case, including how the defendants fraudulently extorted money from victims, sent them abroad, and subjected them to physical and mental torture," the letter stated, referencing the cases filed at Paltan Thana.

According to the Interpol letter, recruitment in Malaysia is managed through the Foreign Workers Centralized Management System (FWCMS), owned by Bentinet. Aminul Islam holds 100% of Bentinet's shares, with Ruhul Amin as his key partner.

Ongoing investigations have confirmed that FWCMS is the mechanism behind this organised human trafficking and illicit financing, according to the NCB Dhaka office.

Former Baira leader Md Fakhrul Islam explained, "Without FWCMS, workers cannot be sent to Malaysia. Using this system, they form syndicates by selecting preferred agencies to handle recruitment."

He added that Aminul Islam and Ruhul Amin wield significant influence over the Malaysian Ministry of Human Resources. "They have even issued letters to Bangladesh to ensure no action is taken against them or their syndicate agencies," Fakhrul said.

The CID's findings

The final investigation report states that the plaintiff could not provide any witnesses, documents, or specific details to substantiate the allegations mentioned in the case statement.

No evidence of additional charges or illicit transactions by the accused was found, and no workers or recruiting agencies filed complaints about the alleged Tk24,000 crore embezzlement.

The report said documents submitted by the defence indicated they charged the official migration fee of Tk78,900 per worker and issued receipts. 

The CID concluded that the allegations were "false, fabricated, baseless, and motivated" and recommended discharging all accused. 

It also urged legal action against the plaintiff under Section 211 of the Penal Code and Section 15 of the Prevention and Suppression of Human Trafficking Act 2012.

The report further noted that the Malaysian government – not Bangladesh's expatriates' welfare ministry – had selected 100 agencies from a list of 1,520 authorised recruiters, making the "syndicate" allegation unfounded in its view.

However, the CID's Financial Crime Unit, conducting a separate probe, has claimed to find evidence that syndicate members charged Tk1.5 lakh per worker – nearly double the official rate. 

"We have recorded statements from 15 victims who paid Tk1.5 lakh instead of Tk78,900," a senior officer said. "We are preparing to file a case against the mafia syndicate."

ACC's parallel case

On 11 March, the Anti-Corruption Commission filed 12 cases against 12 recruiting agencies – including one owned by Mustafa Kamal – on charges of overcharging and laundering money in the Malaysian labour market.

The ACC alleges these agencies charged up to five times the official migration cost, embezzling Tk1,128 crore from 67,380 workers. The accused reportedly collected Tk4.5–6 lakh per worker, despite the government cap of around Tk79,000. ACC sources said the case is ongoing.

Under a memorandum of understanding signed in late 2021, Malaysia selected only 100 Bangladeshi agencies from more than 2,500, in what migration experts say was the product of heavy lobbying in both capitals. They said the selection process enabled the syndicate to monopolise recruitment and inflate fees.

In May this year, Malaysia suspended recruitment of Bangladeshi workers, citing the corruption allegations.