A Dhaka court has imposed a travel ban on nine foreign owner-officials of the publicly listed textile company Ring Shine Textiles Limited and the Chairman of Bangladesh’s FAR Group, Abdul Kader Faruk, over allegations of fraud in the company’s Initial Public Offering (IPO).
The order was issued today, Thursday (October 30), by the court of Dhaka Metropolitan Senior Special Judge Sabbir Faez, following an application filed by the Anti-Corruption Commission (ACC).
Allegations of Tk 275 Crore Embezzlement
The individuals are accused of an organized financial forgery and embezzlement of Tk 275 crore (approximately $25 million USD) through the submission of false documents to get Ring Shine Textiles listed on the stock market.
ACC Public Relations Officer Akhtarul Islam confirmed the information.
Individuals Subject to the Ban
The foreign nationals who are barred from leaving the country are: Sung Wen Li Angela, Sung Jai Min, Mrs. Hsiao Liu Yi Chi, Madam Chueh Kwan, Madam Hsiao Yen Hsin, Sung Chung Yao, Madam Hang Hsiu Lai, Hsiao Hai Ho, Mr. Sung Wei Min
FAR Group Chairman’s Alleged Role
The ACC’s application states that FAR Group Chairman Abdul Kader Faruk, despite Ring Shine Textile Limited-DEPZ lacking working capital, forged shareholder information and all necessary documents to include the company in the stock market’s IPO, thereby facilitating the Tk 275 crore financial fraud and embezzlement.
The complaint further details that Abdul Kader Faruk signed an MoU (Memorandum of Understanding) with the foreign company, agreeing to receive 40-60% of the fraudulently obtained funds in exchange for assisting with the listing. The matter is currently under investigation by the ACC head office.
FAR Group has three other companies currently listed on the stock market: Sharp Industries (formerly RN Spinning), ML Dyeing, and FAR Chemical and Textile Industry.
