Although mutual funds have gained popularity as a means of investment in the developed world, but the picture is completely opposite in Bangladesh. Lack of good governance and transparency has come up again and again as crucial factors for its failure.
Sources said the country's largest asset management company, Bangladesh Race Asset Management's chief executive officer (CEO) and managing director (MD) Hasan Taher Imam has used the company assets to his own benefits.
He has become the virtual owner of the company holding control on its huge assets embezzling hundreds of crores of taka of investors. Analysts believe he has misused the mutual funds, which has been suffering from distrust of investors for many years.
According to capital market analysts, investors who have little knowledge about investment in mutual funds became easy prey. Hasan Taher Imam is responsible for the setback.
He has used this sector to implement his own objectives. They have not given proper dividends to investors. On the contrary, they have built up a mountain of wealth themselves.
Sources said Hasan Taher Imam has cheated general investors of Race Asset Management by using various schemes. For this, he used his controlled brokerage house Multi Securities.
He also used the accounts of several companies for his own personal interests. Among them accounts of Reit Corporation, Vikings, Turn Builders, BD SME Corporation, Invest Asia Cap.
In addition, he has used 3 people close to him on the board of Bangladesh General Insurance Company (BGIC), the trustee of Race Management to loot the money of investors in mutual funds. Apart from this, there is an allegation of land grabbing worth hundreds of crores of taka against him.
On November 19, 2023, an investor named Md. Ruhul Amin Akand filed a complaint against him at Paltan Model Police Station for fraudulently embezzling hundreds of crores of taka.
The complaint states that the accused has embezzled about Tk 300 crore from investors of 12 mutual funds and an SPV company of Race Management through fraud and irregularities.
In addition, he has illegally taken commissions from investors. It is alleged that Tk 50 to Tk 60 crore more was taken from investors in the brokerage house's transaction as commission in 5 years from 2016 to 2021 alone.
Later, investigation of Criminal Investigation Department (CID) of Bangladesh Police found the primary truth of the allegations. The investigation officer of this case said the accused illegally controlled the public funds of Race Asset Management and used them for the benefit of his own company, organization and fund.
The investigation officer of this case said that Hasan Taher Imam legally controlled the public funds of Race Asset Management. In just 5 years, he has caused a loss of Tk 700 crore to small investors by trading units of Race Fund in an unethical and illegal manner.
The BSEC took the initiative to verify the assets by inspecting the activities of Race Asset Management based on some complaints in 2023 and found truth including money laundering. BSEC formed an investigation committee in 2024 to investigate the various allegations against him.
The Anti-Corruption Commission (ACC) has also accused him of embezzling hundreds of crores of taka from investors. In the meantime, the ACC has started investigating the allegations. The agency has also written to various government and private offices seeking records related to the allegations.
Meanwhile, the ACC has found evidence that Hasan Taher Imam and his family have several houses and plots in Dhaka.
