The Anti-Corruption Commission (ACC) yesterday sued Arafat Rahman Koko for laundering money he had illegally taken from a Chinese company, Siemens and other sources in exchange for helping them get government contracts.
In the case, the ACC pinpoints Koko's dealings with China Harbour Engineering Company Ltd over a Tk 351 crore contract for constructing the New Mooring Container Terminal and Siemens over a Tk 239 crore contract for supplying and setting up equipments for Teletalk mobile phone company.
A few other persons also gave money to the youngest son of former prime minister Khaleda Zia in two of his five Singapore bank accounts detected by the ACC--four accounts with the United Overseas Bank and the other with the CIC Bank.
ACC Deputy Director Md Abu Sayeed lodged the case against Koko with Kafrul Police Station yesterday afternoon, stating that using his influence as the son of the then prime minister, Koko illegally earned the money between 2001 and 2006.
"The allegation that Arafat Rahman…has illegally sent abroad 28,84,603.15 Singaporean dollars and 9,32,672.81 US dollars to hide his illegally earned money and his illegal source of income has been primarily proven. This is a punishable offence under section 4(2) of the Money Laundering Prevention Act 2009," the ACC official said in the concluding paragraph of the five-page first information report (FIR).
The FIR also states that Koko did not mention the transactions of his accounts with the Singaporean banks in his income tax return and his wealth statement submitted to the commission.
It says Koko did not have any business relationship with the sources of this illegal money. It seemed to the ACC that these sources--business organisations and persons--gave or were forced to give Koko financial benefit to secure their legal or illegal business interests because he was the son of the then prime minister.
The FIR states that Koko obtained 2.58 million Singaporean dollars from China Harbour in three instalments on May 6, May 31 and August 1 of 2005. He received another 3.03 lakh Singaporean dollars from German company Siemens on October 6 the same year.
The total amount--2.8 million Singaporean dollars--has been deposited in the account number 1093101397 of United Overseas Bank against account holder ZASZ Trading and Consulting Pte Ltd at 9 Changy South Streeet of Singapore. Koko and local businessman Lim Seu Chang jointly own this company.
On November 16, 2007, Koko deposited $9.32 lakh with this bank in account number 352015542-0 of Fairhill Consulting Pte, which Koko owns. But how Koko acquired the amount or who gave the money or what was the purpose are not clear to the ACC.
The ACC investigation found more of Koko's accounts with the United Overseas Bank where a person in Dubai named Habibur Rahman previously deposited a portion of the amount.
The investigation found that Koko himself withdrew and deposited money from his accounts with United Overseas Bank through cheques.
He gave 8.30 lakh Singaporean dollars to Ismail Hossain--son of the then shipping minister late Lt Col Akbar Hossain--who was present during some of the underhand dealings.
Koko left the country for Bangkok for treatment on July 19 last year after getting out of jail on parole. He had been arrested on September 02, 2007 along with Khaleda from their cantonment residence.
This is the first time that the ACC has investigated overseas money laundering and corruption. The investigation was conducted with the help of Singapore authorities following a mutual legal assistance request under the UN Convention against Corruption. Many of the Singapore-based documents have been sent to the ACC. The attorney general's office has also played a vital role in the investigation.
CHINA HARBOUR SCAM
Chinese company China Harbour was awarded a contract for constructing New Mooring Container Terminal through a competitive tender under a budget of Tk 351.41 crore on January 29, 2004.
The company got the contract bidding Tk 331.41 crore for the tender floated by the Chittagong Port Authority (CPA) in mid 2003.
But when the company was asked to sign the contract, it was reluctant to do so. When the CPA liquidated China Harbour's bid deposit, China Harbour proposed a budgetary increase of Tk 25.64 crore for the job.
This "value engineering proposal" and relevant correspondence of China Harbour were later incorporated in the agreement with the Chinese company. The cabinet's purchase committee then approved the proposal.
The ACC in its investigation found that China Harbour in November 26, 2001 had employed Brig Gen (retd) Md Zillur Rahman as its local agent for construction work of New Mooring Container Terminal project.
When the tender process was at the final stage in 2003 and China Harbour was sure to get the job, Koko put undue pressure on Zillur, saying he (Zillur) could take Tk 3.5 crore as commission but Zillur had to allow AKM Musa Kajal to draw the "remaining" sum of the commission from China Harbour.
Koko then compelled Zillur to sign a memorandum of understanding (MoU) with China Harbour on January 13, 2004 stating that the remaining commission would be given to Musa.
Ismail Hossain, son of late Lt Col Akbar Hossain, was present during the signing of the MoU.
The MoU said the total commission in the revised budget for construction of the container terminal would be Tk 19 crore.
Of the amount, China Harbour kept 8.5 percent while the rest was split among Chinese company officials (Tk 60 lakh), Zillur (Tk 3.5 crore) and Musa (Tk 13.28 crore). Musa was supposed to give the money to "other officers".
The ACC believes that a part of the money landed in Koko's bank account in Singapore.
Both Koko and Musa are accused in the Gatco corruption case.
SIEMENS
Siemens got a Tk 239.39 crore contract to supply, install, test and commission the equipment required to launch the Teletalk mobile telephone company of the Bangladesh Telegraph and Telephone Board on April 27, 2004.
The tender for the job was floated in August 2002.
Consultant of Siemens Bangladesh Md Zulfikar Ali of Dhanmondi told the ACC that Koko demanded huge amount of money from Siemens for awarding the company the job.
Siemens was compelled to give Koko $180,000 via Ali. The money was transferred to Koko's account in United Overseas Bank in the name of ZASZ Trading and Consultant through Ali's Standard Chartered Bank account in Singapore. This money was converted into 3.03 lakh Singaporean dollars.