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Syndicate exploits BTRC to embezzle Tk8,000cr 

News Desk | banglanews24.com
Update: 2024-11-07 12:24:09
Syndicate exploits BTRC to embezzle Tk8,000cr 

For over nine years, a syndicate reportedly misappropriated around Tk8,000 crore through the International Gateway Operators Forum (IOF) by exploiting the Bangladesh Telecommunication Regulatory Commission (BTRC).

This syndicate, allegedly led by Salman F Rahman, advisor to the former prime minister Sheikh Hasina, included private companies that managed to pocket vast sums while controlling international call terminations. Although some business affiliates attempted to protest, they were reportedly threatened and silenced.

The IOF, established in 2015, functioned with 29 international gateway operators, yet only seven had ultimate control over international calls: Unique Infoway, Digicon Telecommunications, Roots Communications, Global Voice, Bangla Track, and Novo Telecom. Initially set as a "trial platform" for a few months, it continued to operate and amass substantial profits. Reports indicate the syndicate led to a revenue loss for mobile operators, ICX exchanges, and the BTRC, totaling significant monthly sums in lost revenue while IOF profits surged from Tk70 crore to Tk140 crore.

Under Salman F Rahman's influence, BTRC officials reportedly approved this model amid political pressure. Despite mounting losses, the system remained unchallenged, with top-level oversight handled directly by Rahman's son, Shayan Rahman, who managed the forum's meetings.

This IGW business model has sparked public outcry, with accusations of unfair revenue sharing and alleged misuse of government authority to benefit private companies over public interests.

According to business insiders, on 28 September 2014, the Bangladesh Telecommunication Regulatory Commission (BTRC) approved a proposal to establish the International Gateway Operators Forum (IOF), subsequently forwarding it to the Ministry of Posts, Telecommunications, and Information Technology for approval. Reportedly, the BTRC felt compelled to proceed with this step. On 24 March 2015, a directive on this matter was issued by the then Director of BTRC’s Engineering and Operations Department, Engineer Md. Mezbahuzzaman.

Regarding the IGW syndicate, mobile phone operator Robi's Company Secretary and Chief Corporate and Regulatory Affairs Officer, Shahed Alam, told the Bangla daily Bangladesh Pratidin that while some call the IGW Forum a "platform," they consider it an "extra layer" with separate switches for IGW and IOS.

“This revenue-sharing business model is untested globally. This model mandates that international call rates, regardless of amount, are not shared with any other parties but only with the operators and the government under specific agreements with BTRC. Since its inception, this revenue-sharing disparity has resulted in around Tk8,000 crore being denied to operators and the government,” he said.

Alam pointed out that Pakistan attempted a similar business model, but their High Court cancelled it due to transparency issues.

“While the ministry initially approved this as a trial, it hasn't taken any further action. The BTRC could terminate it, as it does not align with official policy,” he added.

Mohiuddin Ahmed, president of Bangladesh Mobile Phone Users Association, criticised the arrangement, saying that labelling the IOF as a "trial platform" enabled an "illegal layer" that facilitated misappropriation of government funds under legal cover.

“Even after the change of government on 5 August, the ongoing looting of billions from international call termination revenue under the name of the IOF is highly reprehensible. It is incomprehensible why BTRC still maintains this practice. I believe that the IOF has no place in the context of Bangladesh. To stop political favouritism and money laundering, this level must be removed swiftly,” he added.

There are also longstanding claims that former State Minister for Telecommunications, Tarana Halim, lost her ministerial position for resisting unethical concessions to the IOF. Mohiuddin Ahmed Ahmed called for an investigation into this claim.

Source: Bangladesh Pratidin

BDST: 1224 HRS, NOV 07, 2024
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