A massive scandal centered on hundi, an illegal cross-border money transaction system, has been unearthed at Biman Bangladesh Airlines, with a section of cabin crew accused of laundering their overseas allowances.
The illicit practice, which has caused significant losses to the country’s foreign exchange reserves, is now under investigation by Bangladesh Bank’s Money Laundering and Terrorist Financing Prevention Department.
Documents and official letters obtained by TIMES of Bangladesh indicate that several officials from the airline’s Finance Department are suspected of facilitating the scheme, leading to the suspension of a top official named in an intelligence report.
Sources involved in the investigation confirmed that Bangladesh Bank officials have found preliminary evidence supporting the allegations, though the inquiry remains ongoing.
A report noted that for a long time, there was an established system where cabin crew withdrew their overseas allowances through individual cheques.
However, in May, this protocol was bypassed when a single cheque for 1,346,847 Dirhams (approximately Tk4.5 crore) was authorised for 19 overseas allowance bills. The cheque was issued to a cabin crew member, FF Md Abdus Shakoor Mujahid, and the entire sum was withdrawn from the Dubai branch of Janata Bank.
The following day, Mujahid and the relevant crew members returned to Dhaka on Biman flight BG-248. Acting on prior intelligence, security officials searched their luggage at Hazrat Shahjalal International Airport.
Despite the massive withdrawal in Dubai, officials recovered only 78,360 Dirhams from the entire crew, meaning approximately 1,268,487 Dirhams – equivalent to Tk 4.26 crore – was missing.
The report suggests the missing funds were sent to Bangladesh via hundi, where the money was allegedly handed over to a money exchange agent in Dubai and a local agent subsequently delivered the Taka to the intended recipients.
The report describes the incident not as an isolated irregularity but as a result of structural weaknesses in Biman’s financial management. It pointed out that if the traditional system of individual cheques had been followed, such a large amount of foreign currency could not have been concentrated in the hands of one person.
The then chief financial officer (CFO), Mizanur Rashid, has been accused of approving the single cheque in violation of standard procedures.
The report recommended further investigations into the director of finance, the finance manager of the Dubai station, the involved money exchange, and the suspected hundi ring, while advising that Biman return to issuing individual cheques for all cabin crew members.
Bangladesh Bank has forwarded the report to the head office of Janata Bank, which has since instructed its UAE branch to take necessary precautions for future transactions.
Md Mazibur Rahman, Managing Director of Janata Bank, told TIMES that the bank does not have the authority to set withdrawal limits for Biman officials. He explained that the bank’s responsibility is to honour cheques presented by the proper authorities.
Adding that Biman is responsible for verifying any internal irregularities, he noted that the Dubai branch has been directed to exercise extra caution regarding large transactions following this incident.
Amidst these developments, Biman Bangladesh Airlines suspended Mizanur Rashid on 19 May.
While the suspension order did not explicitly state a reason, it was issued the same day his name appeared in the intelligence report and just one day after he had received a promotion.
When contacted by TIMES through multiple channels for comment, Rashid did not respond.
