Beximco Pharma denies money laundering linked to Saudi firm

Beximco Pharmaceuticals Limited, a concern of Beximco Group, has refuted allegations of money laundering linked to its investment in Saudi Arabian company Jubail Pharma Co Ltd.

The company addressed these accusations in a statement released on the London Stock Exchange's website on 3 September.

Beximco Pharma, which is listed on the London Stock Exchange, clarified in its statement that it has a minority equity holding in Jubail Pharma, obtained solely through a technology transfer agreement, rather than a financial investment.

The pharma company sought and received approval from the Bangladesh Bank to enable it to acquire this shareholding and reports to the central bank regarding its shareholding on a regular basis, the statement added.

However, the company did not mention the details of its shareholding position in Jubail Pharma.

The statement was released following reports in the Bangladesh media on 2 September that the Criminal Investigation Department (CID) of Bangladesh Police had initiated a probe into these allegations.

These reports state that the CID has launched a probe into allegations of money laundering by Beximco Group, including certain allegations concerning Beximco Pharma and its relationship and dealings with Jubail Pharma Co Ltd, a pharmaceutical company in Saudi Arabia, according to the statement.

In its statement, Beximco Pharma said they have provided a factual correction to some press reports that appeared in the Bangladesh media.

Stating that it is an independently operated and managed entity of the broader Beximco Group, the pharma company further said that the same media reports also noted that Beximco Group has been accused, following a preliminary review by the financial crime unit of the CID, of taking loans from seven banks through fraud over a number of years. 

Beximco Pharma is not a party to any of the loans of Beximco Group, it clarified in the statement.

Beximco Pharma also noted that the company's non-executive vice-chairman, Salman F Rahman, who was also the private industry and investment adviser to the former prime minister, has been transferred to jail on 3 September, after being remanded in custody by the Dhaka Metropolitan Police and pending the filing of charges.

Salman Rahman has no role in the day-to-day operations of Beximco Pharma, the company said in the statement.

Beximco Pharma is also listed on the Dhaka Stock Exchange. Its shares closed at Tk73.30 yesterday, which was 0.69% higher than the previous session.

Since the Sheikh Hasina-led government fell, its share price dropped over 41%.

Meanwhile, Beximco Pharma posted a 13% growth in revenue to Tk3,305 crore and the net profit jumped over 22% to Tk437 crore in the first three quarters of FY24.

It had paid a 35% cash dividend for the fiscal year 2022-23.