2nd Oct 2024 12:12
(Alliance News) - Beximco Pharmaceuticals Ltd on Wednesday said the Bangladesh court has referred the company's appeal in its recent fraud case to a full-court hearing, which will take place on October 28.
Beximco Pharma is a manufacturer of pharmaceutical products and active ingredients based in Dhaka, Bangladesh, and is part of the Beximco Group.
Earlier this month, the Beximco Group was accused of fraud, having taken loans from seven banks through fraud over a number of years.
A Writ Petition was issued by Masood Sobhan, and was filed as a Public Interest Litigation.
The Writ included Beximco Pharma, in addition to the Bangladesh Bank, The Bangladesh Ministry of Finance, and Beximco Pharma's Non-Executive Vice-Chairman, Salman Rahman, as separately listed respondents.
The Writ asked the Court to direct the Bangladesh Bank to "appoint a Receiver to manage the companies of [the] Beximco Group of Companies".
Beximco Pharma said it was not party to any of these loans, and appealed the Writ.
The company also noted that Rahman only holds a 2.0% direct holding in Beximco Pharma and is not involved in the day-to-day running of the company.
Beximco Pharma commented: "The interim order directing appointment of a receiver for the Beximco Group of Companies does not in our opinion affect BPL as BPL is a publicly listed company with both institutional, retail and international shareholders and does not in any way connected or can be regarded as a 'Beximco Group of Companies'."
It also added that the petitioner lacked the legal standing to prosecute in the Supreme Court.
However, the appeal was repealed and the status of the case remains unchanged. The full court hearing will take place October 28.
In addition to fraud, the Beximco Group has been accused of money laundering.
The Criminal Investigation Department of Bangladesh Police has launched an investigation into the allegations, including certain allegations concerning Beximco Pharma and its dealings with Jubail Pharma Co Ltd, a pharmaceuticals company in Saudi Arabia.
Beximco Pharma said that while it does have a minority holding in Jubail Pharma, it has had no involvement in the running of the company, and has never traded with it outside the technology transfer agreement.
The company emphasised that it is an independently operated and managed entity of the broader Beximco Group.
These allegations come after the arrest of Rahman back in August, along with a number of other ministers and senior leaders from the previous government.
In addition to his position at Beximco Pharma, Rahman was a private industry and investment advisor to deposed Bangladesh prime minister Sheikh Hasina.
Sheikh Hasina fled Bangladesh in August amid accusations of human rights abuses, including the extrajudicial killing of thousands of her political opponents.
Rahman was transferred to jail on September 3.
Beximco Pharmaceuticals also noted that the Bangladesh central bank has dissolved the board of IFIC Bank, of which Rahman was a member.
Beximco shares were down 2.0% at 24.00 pence each in London on Wednesday afternoon.
By Lydia Doye, Alliance News editor
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