Ex-MP Poton's firm sued for Tk582cr fertiliser trick 

The Bangladesh Chemical Industries Corporation (BCIC) has filed a Tk1,163 crore money recovery suit against Poton Traders for misappropriating 72,000 tonnes of imported urea fertiliser, valued at Tk582 crore, during transportation.

Poton Traders – run by Kamrul Ashraf Khan (Poton) who is a former member of parliament (MP) from the Narsindi 2 constituency and the president of the Bangladesh Fertiliser Association – was the biggest contractor of the BCIC that transported fertilisers for 15 years.

An investigation by the BCIC found that Kamrul Ashraf used his position and political power to secure transportation contracts. He knew all the government's logistic loopholes and used them cunningly. The embezzlement occurred during fertiliser transits.

The probe report also revealed that Poton Traders exploited the BCIC supply chain loopholes of not having enough buffer warehouses to store fertilisers. That is why a large amount of fertiliser is always in transit with its contractors giving them ample opportunities to steal.

The BCIC has formed three separate probe committees for further investigation into the company.

Poton's scheme

Kamrul Ashraf Khan is one of the top figures in the country's fertiliser sector. His Poton Traders, during the 15 years contract with the BCIC, transported about 63.38 lakh tonnes of government fertilisers.

However, Poton Traders never delivered the correct quantity on time and used to swindle a large portion during transits, the BCIC report says.

Even during fertiliser shortages in the country, the BCIC could not recover the fertilisers that went missing during transits. 

For instance, 88,688 tonnes of fertiliser in 2020 and 71,161 tonnes the next year were in transit with Poton Traders which the company could not account for immediately.

BCIC's suspicion over the company began to develop when it failed to deliver the missing fertilisers even after being asked repeatedly.

Tender conditions were amended to keep the company from getting new contracts.

When Proton Traders failed to get its hands on new fertilisers, it failed to return the 72,000 tonnes it had embezzled from its previous contracts.

Because of this, the BCIC authorities suspect that the company was filling in the embezzled fertiliser from new supplies while claiming that the deficit amount was in transit.

The missing 72,000 tonnes of fertiliser

According to the BCIC's delivery contracts, if any institution damages or embezzles government assets, it has to compensate twice the value of the assets.

That is why, the BCIC filed a money suit of Tk1,163.16 crore against Kamrul Ashraf Khan's company in the Joint District Judge's Court of Dhaka.

According to the BCIC investigation report, the corporation had an agreement with Poton Traders to deliver 3.93 lakh tonnes of urea imported from the Middle East to government warehouses in FY22.

As per rules, fertilisers are supposed to reach the warehouses within 50 days of their release. However, the contractor never delivered 72,000 tonnes of fertilisers, the report says.

Kamrul Ashraf Khan did not deliver the fertilisers despite repeated letters to him by the corporation, it said.

The BCIC formed a committee in this regard last November. The committee submitted its inquiry report in December.

General Manager Shahadat Hossain and General Manager (Management) Nazmul Hossain of Poton Traders signed a BCIC document acknowledging that the fertilisers are not in their stock, the report said.

Subsequently, on 20 December, the BCIC wrote to the Ministry of Industries seeking directives to take action against Poton Traders.

The letter said the BCIC had not been able to resolve the issue despite repeated meetings with Kamrul Ashraf.

Later, according to the instructions of the Ministry of Industries, the BCIC filed the money suit.

BCIC lawyer Advocate Kismot Habib told The Business Standard that Kamrul Ashraf Khan Poton has been summoned. "Once he appears in court, the next hearing will begin."  

Besides, following a High Court order, the Anti-Corruption Commission has formed a three-member probe committee which has already sought BCIC's investigation report and other related information.

Acknowledging the money suit, Saidur Rahman, chairman of the BCIC, told The Business Standard that Poton Traders' collateral has been confiscated. "Besides, another committee is being formed for further investigation in accordance with the court's instructions, which is now at the Ministry of Industries waiting for approval."

Contacting Kamrul Ashraf Khan

Kamrul Ashraf Khan could not be reached after several visits to his offices of Poton Traders and the Bangladesh Fertiliser Association.

Several officials of the two organisations, who wished not to be named, said that the former lawmaker does not attend the offices regularly after the incident came to light.

He was also not reachable through his mobile, WhatsApp, or text message. For the last two days, his mobile phone number was also found turned off.

Poton's other misdeeds

Poton Traders, along with Kushtia Traders, is also accused of being involved in embezzling MOP (potash) fertiliser worth Tk110 crore, as revealed through an investigation by the Bangladesh Agricultural Development Corporation (BADC).

However, no action has been taken other than the two being blacklisted.

Agriculture Minister Abdur Razzak recently said Kamrul Ashraf Khan Poton's blacklisting means that he will not be able to participate in any more tenders under the Ministry of Agriculture.

"The process is on for action to be taken against him," the minister added.

However, the former lawmaker has filed a counter lawsuit claiming that blacklisting him was not lawful, the minister further said.

Other incidents

Earlier BCIC found contractor firm Nawab & Company embezzling 64,000 tonnes of fertiliser.  

A case was filed against its owner Mohammad Nawab Khan in December 2021. The case is being investigated by the police's Counter Terrorism and Transnational Crime (CTTC) unit.

Apart from this, BCIC has also filed a compensation case of Tk600 crore against Nawab & Company.

Bangladesh's fertiliser need

Bangladesh has an annual demand of 26 lakh tonnes of urea fertiliser.

Of this demand, 10 lakh tonnes are targeted for production through BCIC's fertiliser plants. The rest of the demand is met through imports.

Imported fertilisers are procured at government warehouses through contracting firms.