Malpractice in SEC in issuing IPOs in 90s
Finds CAG report
Star Business Report
Some companies were able to enter the capital market showing fake statements in connivance with a section of officials of initial public offering (IPO) department in the Securities and Exchange Commission (SEC), an audit by the Comptroller and Auditor General (CAG) said. The CAG report investigated the activities of the SEC between 1993 and 1998. In the report, the CAG said that some corrupt officials of IPO department resorted to malpractice while issuing clearance certificates to some companies. According to the report, the officials are Ruksana Chowdhury, the then deputy director, Nousher Ali, former executive director, and Dr AKM Shahabub Alam, former member, and Alamgir Kabir, former member. According to the CAG report, the officials showed the volume of Mark Bangladesh Shipa and Engineering Ltd asset at Tk 52,36,11,902, which was Tk 47,41,11,514 in the prospectus by Mark Bangladesh to the SEC. However, following allegation from the shareholders about false asset volume, the SEC asked the mechanical engineering department of Bangladesh University of Engineering and Technology (Buet) to assess the actual volume. The Buet report found that the real amount was Tk 5,35,14,527 which was 978.44 percent lower than the volume stated in the SEC inspection report. After getting the permission, Mark Bangladesh floated shares in the capital market in 1996 and raised Tk 39,90,00,000. About the allegation, SEC Chairman Mirza Azizul Islam said the corruption charges were made during the previous chairman's tenure. "I will be careful so that such practices do not take place again," the SEC chairman added.
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