Names of some 'firms linked to Bangladesh' come up
The names of several companies bearing Bangladesh's name have surfaced in the Paradise Papers, a global investigation into the offshore activities of some of the world's most powerful people and companies.
The firms include Bangladesh Biman Inc, which was registered in the Pacific island nation of Samoa on June 6, 2013, according to the probe by the International Consortium of Investigative Journalists (ICIJ).
The firm, whose name is similar to the national carrier Biman Bangladesh Airlines Ltd, is reportedly linked to Hong Kong.
Asked, Civil Aviation and Tourism Minister Rashed Khan Menon yesterday said he was unaware of the matter.
Another firm, Islamic Solidarity Shipping Company Bangladesh Inc, is also on the list provided by the ICIJ. The company is registered in Panama and connected to Saudi Arabia.
The other firms include Bangladesh Textile Agencies, Essar Bangladesh Holdings Private Ltd, Telecom Development Company Bangladesh Ltd, Esso Exploration and Production Bangladesh, Patenga (Bangladesh) Energy Ltd, Burlington Resources Bangladesh Ltd, Frontier Bangladesh (Bermuda) Ltd and Terra Bangladesh Fund Ltd.
The ICIJ is yet to give details of these companies. It cited last year's Panama Papers investigation; Offshore Leaks, a 2013 report with details of 130,000 offshore accounts; and Bahamas Leaks, a set of nearly 1.5 million documents; as the sources of information.
OIL COMPANIES' VENTURES IN BERMUDA
American oil company Unocal, which was acquired by Chevron back in 2005, had mysteriously got several companies registered in Bermuda for its Bangladesh operation between 1993 and 1998 and for Bangladeshi assets it didn't own back then.
According to the Paradise Papers, Unocal got Unocal Bangladesh registered in April 1993, Unocal Bangladesh Blocks Thirteen and Fourteen Ltd in December 1993, Unocal Bangladesh Block Twelve Ltd in December 1993, Unocal Bangladesh Exploration Ltd in October 1995, Unocal Bangladesh Block Seven in February 1998, and Unocal Bangladesh Block Five and Block Ten in November 1998.
Of these blocks, 12, 13 and 14 were assets of American company Occidental as per the two production sharing contracts (PSCs) signed in 1995 after two years of negotiations.
Unocal acquired Occidental Bangladesh's operation in 1999, two years after the disastrous Magurchhara gas field blowout under Occidental's operation and one year after its discovery of the massive Bibiyana gas field.
The names connected with these Unocal companies were all either directors or vice presidents of Unocal, showed the Paradise Papers.
Other than Unocal, Indian infrastructure company Essar formed Bangladesh Holdings Private Limited in Singapore, said the ICIJ probe, mentioning the Offshore Leaks as the source of data.
International oil company Esso also got a company registered in December 1997 for operating in Bangladesh and American company Pangaea a similar firm in the Bahamas, the ICIJ cited referring to the Bahamas Leaks.
Both the companies had tried to strike a deal in Bangladesh but failed.
ICIJ, a global network of more than 200 journalists in 70 countries, has been analysing 13.4 million files, dubbed the Paradise Papers, laying bare some of the financial secrets of the world's elite, from the Queen of the UK to US president's commerce secretary.
The files came largely from Appleby, one of the biggest offshore law firms on the planet, which was founded in Bermuda and has branches in tax havens around the world.
CALL FOR PROBE
In reply to a journalist's query about the names that came up in the Paradise Papers, Prime Minister's Economic Affairs Adviser Mashiur Rahman said, “It has to be examined how the money was earned. Until then, the extent of violations of the rules would not be clear.”
It needs to be found out how much money was transferred from Bangladesh and whether the money was siphoned off, he said after a book launch at the Policy Research Institute (PRI) of Bangladesh in the capital.
The government will take initiative to bring back the money if it was taken out of the country illegally, he noted in response to another question.
Mashiur pointed out that people have the tendency to keep money in countries with low tax.
“This is true not only for our country but also for the USA and Germany,” he said, adding that American businesses have transferred funds to Canada and Ireland for their low tax rates.