Ministry asked to form commission

The Registrar of Joint Stock Companies and Firms (RJSC) in its final report has recommended the commerce ministry form a commission to investigate into the irregularities in Destiny Group that owns 37 sister concerns.
Chief of RJSC Ahmedur Rahim submitted the report to Commerce Secretary Ghulam Hussain on Tuesday at the latter's office in the capital.
The ministry in February formed a seven-member investigation committee headed by Rahim to probe the irregularities in the business group.
At least three of its sister companies have invested more money than the paid up capital of the respective firms, revealed the report.
The probe body also found Destiny Multipurpose Cooperative Society Ltd involved in illegal banking activities, a senior official of the commerce ministry told The Daily Star yesterday, seeking anonymity.
The report suggested the government audits the company by a chartered accountancy (CA) firm to further investigate the matter.
Destiny has transferred significant proportion of shares to its sister concerns without permission of the RJSC, added the official.
Another of its concerns, Destiny Tree Plantation Ltd has been running its business suspiciously as it has inked agreements with many people for different tenures, mentioned the report.
Even the deals were not entered in a proper way for doing the business.
The commerce ministry will soon discuss the details of the report to decide the next course of action.
The report, however, did not clarify many aspects of its findings, said the ministry official. “Several other government departments including the National Board of Revenue [NBR] and Department of Cooperatives are investigating into the matter.”
Earlier in a meeting on April 17, Commerce Secretary Ghulam Hussain had recommended Finance Minister AMA Muhith form a commission for probing the anomalies in Destiny Group.
Submitting the primary report last month, Registrar of RJSC Ahmedur Rahim had also suggested the commerce ministry constitute a commission.
Despite repeated efforts, The Daily Star could not reach Rahim over the phone for his comments on the report.
Various newspapers recently reported the irregularities of Destiny-2000, a concern of the group, after a Bangladesh Bank inquiry found proof of illegal banking by Destiny Multipurpose Cooperative Society Ltd.
The cooperative has seen an astronomical rise in its capital, investment and profit since 2009.
The company's paid-up capital had increased to nearly Tk 300 crore in 2009-10 from Tk 5.53 crore a year ago. The figure jumped to nearly Tk 1,200 crore in 2010-11.
Destiny Group posted a staggering 354 percent increase in its net profit in 2010-11 from that of a year ago.
These figures, however, are not certified by any chartered accountant and can easily mislead people, said a Bangladesh Bank report.