
Probe into Matiur’s links to SK Trims
The central bank has frozen the bank accounts of SK Trims as part of an investigation into illegal wealth accumulation by former revenue official Md Matiur Rahman. Despite not having any stake in the company in his name, Matiur’s family members held a significant stake in SK Trims before it became public in 2018. The company’s financial statements show that Matiur’s family members no longer have any holdings in the company, indicating they may have offloaded or transferred their shares.
The Bangladesh Bank has recommended suspending transactions of shares of Matiur’s family members in SK Trims until the restriction is removed by the court or authorities. Other investors will still be able to trade in shares of SK Trims. The Chittagong bourse is investigating Matiur’s links to SK Trims, while the Dhaka bourse is not aware of the Bangladesh Bank’s letter.
The freezing of SK Trims’ bank accounts could hamper its exports, imports, daily transactions, and dividend distributions. The company plans to seek an order from the upper court to withdraw the embargo. Before going public, SK Trims reported a profit increase year-on-year, but its earnings declined over the next few fiscal years. However, the company seems to have bounced back with a growth in income in the most recent fiscal year.
Overall, the investigation into Matiur’s links to SK Trims has raised questions about illegal wealth accumulation and the potential impact on the company’s operations. Investors and regulators will be closely monitoring the situation as it unfolds.