Publish: 10:47, 07 Nov, 2024

IGW Scandal

8,000 crore in the syndicate's pocket

Private enterprises looting money using BTRC
Kazi Shohag
8,000 crore in the syndicate's pocket
Symbolic

The time frame is 9 years, and the total amount involved amounts to 8 thousand crore taka. This entire sum has been embezzled through a syndicate operating under the name of the International Gateway Operators Forum (IOF). All the entities within the forum are privately owned. The Bangladesh Telecommunication Regulatory Commission (BTRC), a state-owned institution, was used to facilitate the embezzlement of these funds.

The syndicate was led by Salman F Rahman, former Prime Minister and Awami League President Sheikh Hasina’s private advisor on industrial and investment affairs.

It was widely known within the telecommunications sector, yet remained largely unspoken.

A few business figures attempted to raise objections, but they were silenced through various forms of threats and intimidation.

While some individuals with the same license were seen driving BMWs, others traveled around Dhaka in rickshaws and local buses.

Calls originating from abroad, or those made from the country to international destinations, did not directly reach the handset. Instead, the ringtone would sound only after passing through several intermediary stages—these are the gateways.

Calls from abroad first arrive at the International Gateway (IGW) operator, then proceed to the Interconnection Exchange (ICX). From there, the exchange operator forwards the call to the intended mobile or landline subscriber.

Though initially intended as a trial period of three to six months, this syndicate's operations continue to this day.

The Strategy to Monopolize the IGW Business

According to insiders, in 2015, a plan was set in motion under the leadership of Salman F Rahman, former Prime Minister Sheikh Hasina’s private advisor on industrial and investment affairs and Vice Chairman of Beximco Group.

Several leaders from the ruling party collaborated with him to execute this scheme. Relatives of these leaders were also involved in the ownership of the companies.

Under significant pressure, the Bangladesh Telecommunication Regulatory Commission (BTRC) had no choice but to give its approval to the International Gateway Operators Forum (IOF). The plan was carried out not only under Salman F Rahman’s direction but also under the direct supervision of his son, Shayan Rahman.

In fact, Shayan Rahman took a leading role in almost every meeting of the IGW Forum at the BTRC.

Although there were 29 International Gateway Operators (IGWs) in the country in 2015, control over international call traffic was monopolized by seven companies— Unique Infoway, Digicon Telecommunication, Roots communication, Global Voice, Bangla Trac, and NovoTel —all of which were part of the IOF.

As a result, the new system, based on 2015 estimates, led to significant revenue losses: mobile operators lost about 19.3 crore taka per month, ICXs lost around 16 crore taka, and BTRC’s revenue dropped by approximately 47 crore taka.

Meanwhile, the profits of the IGW operators soared from 70 crore taka to 140 crore taka per month. The seven controlling companies, in particular, reaped the highest profits from this monopolistic scheme.

Insiders reveal that on September 28, 2014, the Bangladesh Telecommunication Regulatory Commission (BTRC) approved the proposal to form an organization called the International Gateway Operators Forum (IOF) and forwarded it to the Ministry of Posts, Telecommunications, and Information Technology for approval.

BTRC was under significant pressure to take this action. The directive regarding this matter was issued in a letter signed by Engr. Md. Mejbahuzzaman, Director of BTRC’s Engineering and Operations Division, on March 24, 2015.

Regarding the IGW syndicate, Shahedul Alam, Company Secretary and Chief Corporate and Regulatory Affairs Officer of mobile operator Robi, told Bangladesh Pratidin that the IGW Forum is often referred to as a platform, but in their view, it is a layer.

"There are two separate switches here," he explained.

"No matter what you call it, there are IGW switches, and then there are IOS switches. The business model they’ve established doesn’t exist anywhere else in the world. According to their rules, regardless of the rate for any international call, they will not share that rate with anyone. Based on their agreement with BTRC, it will only be shared with operators and the government."

He emphasized that the revenue-sharing disparity, which has existed from the very beginning, is still in effect.

"On paper, we can clearly demonstrate that this has resulted in a loss of nearly 8 thousand crore taka in revenue for both the operators and the government," he added.

He further stated that this business model was initially attempted in Pakistan, but the country's High Court struck it down due to concerns about its lack of transparency.

Regarding the role of BTRC, Shahedul Alam said, "When BTRC initially launched the pilot project, approval was obtained from the Ministry. Now, since the Ministry has remained silent on the matter, BTRC has also refrained from commenting. However, BTRC has the authority to cancel it if they choose, as it falls completely outside of established policy guidelines."

In this regard, Mohiuddin Ahmed, President of the Bangladesh Mobile Phone Users Association, told Bangladesh Pratidin, "An illegal layer has been created under the guise of a pilot platform, and the formula for embezzling thousands of crores of government money has been set up within the legal framework. This must be investigated. Even after the government change on August 5, the ongoing looting of millions of taka from international call termination revenue under the name of IOF is highly condemnable. We fail to understand why BTRC has kept this system in place. Personally, I believe there is no need for IOF in the context of Bangladesh. To stop political advantages and money laundering, this layer must be removed immediately."

He also mentioned a widely heard claim in the telecom sector, "It is said that former Minister of Posts and Telecommunications Tarana Halim lost her ministry for refusing to grant illegal benefits to IOF. This issue should also be investigated."

Translated by ARK/ Bd-Pratidin English

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