Khulna Printing shutters factory as chairman’s bank accounts frozen

Khulna Printing & Packaging Limited, a concern of Lockpur Group, yesterday decided to shut down its factory, following the freezing of the bank accounts of the company's chairman and managing director as per a court order.

The factory will remain shuttered for an uncertain period beginning from today.

On 21 October, the court ordered freezing bank accounts of SM Amzad Hossain and all his companies in a money laundering case filed by the Anti-Corruption Commission (ACC). Amzad Hossain has reportedly taken out loans on a false identity.

The ACC has also banned the sale and transfer of shares in the names of Amjad Hossain, his wife and daughter, over an allegation that he had tried to smuggle the money outside the country by selling the shares.

Against such a backdrop, the listed company will not run its business for an uncertain period.  But its board has decided to continue the legal battle.

Earlier, in March this year, the Bangladesh Financial Intelligence Unit (BFIU) directed banks to freeze accounts of SM Amjad Hossain, his wife Sufia Amjad and daughter Tazri Amjad.

SM Amzad Hossain was the chairman of the South Bangla South Bangla Agriculture and Commerce Bank Limited, which got listed on the bourses this year.

Earlier, in 2015, Khulna Printing was compelled to close the factory as the National Board of Revenue (NBR) locked their business identification number (BIN) over allegations of tax evasion.

The NBR reopened the BIN in 2018 and the company reopened the factory in the following year. But the company could not run its business smoothly due to the Covid-19 pandemic. As a result, it continued to incur losses for the fifth consecutive year.

In the fiscal year 2020-21, the company's loss per share was Tk6.12, and, therefore, it did not declare any dividend for shareholders.

In the last one month, its share price dropped 29% and closed at Tk12.70 on Wednesday at the Dhaka Stock Exchange.