Uttara Finance moves to halt its former managing director's travel abroad

Uttara Finance and Investments Limited has moved to seize the passport of its former managing director SM Shamsul Arefin, who was terminated on charge of money embezzlement, and halt his travel abroad. 

To make this happen, Acting Managing Director of the publicly listed company Moon Rani Das on 18 September sent a letter to the Bangladesh Bank and the Anti-Corruption Commission and requested them to take necessary steps. 

"A special audit by Rahman Rahman Haq [representing giant multinational accounting firm KPMG] found evidence of various irregularities, including embezzlement of a large amount of money, against former managing director SM Shamsul Arefin," reads the letter, a copy of which The Business Standard obtained.

"An Anti-Corruption Commission investigation is now going on against him, following the Bangladesh Bank order. We fear he might attempt to flee the country to avoid legal action. Hence, we request you to take necessary steps so that he cannot leave the country by any means," it adds.  

Earlier on 23 July, Shamsul Arefin was terminated from his job in accordance with the central bank's policy titled "Appointment of chief executive officer (CEO) for financial institutions".  

Shamsul Arefin could not be reached for his comment despite several attempts.  

Incorporated in 1995, Uttara Finance was listed on the stock market in 1997. As on 31 January 2021, the sponsor directors hold 44.44% shares, institutional investors 35.02%, foreigner investors 7.82% and general investors own 12.72% shares of the company.

The total loans of Uttara Finance was Tk2,694 crore at the end of June 2021, according to the central bank, and some Tk371 crore or 13.79% of them were defaulted. The amount of loans decreased to Tk2,316 crore at the end of June this year, but defaulted loans jumped to Tk1,260 crore or 54% of the total.