Grameenphone evading tax worth billions of Taka

by Salah Uddin Shoaib Choudhury
December 9, 2010

http://www.weeklyblitz.net/1165/grameenphone-evading-tax-worth-billions-of-taka

In a latest financial statement, Grameenphone Ltd, an enterprise founded by Grameen Bank's Dr. Yunus and now major stake of the shares held by Nortel reported Bangladesh TK 1,700 crore revenues for the first quarter of 2010 with 127 crores and 8% growth from the first quarter of 2009. Total revenues for the quarter increased by about 31 crores and 1.8% compared to the fourth quarter of 2009, mainly in voice revenues, due to growth in subscription base. Data revenues also contributed to the consistent revenue growth, increased by 65% and 13% from first quarter and fourth quarter of 2009 respectively.

In 2004, it was reported in the Bangladeshi press that Comptroller and Auditor General [CAG] was to conduct an audit into the alleged tax evasion worth TK 1.83 billion annually by the country's leading mobile phone operators, GrameenPhone and AkTel [now Robi Tel]. In a letter to both the companies, the BTRC has asked them to submit all necessary information regarding tax collection since the time of the companies' inception. In the letter, the BTRC informed the companies that under the Article 21 [2] of the Bangladesh Telecommunications Act 2001, the Commission could conduct audits of incomes of the private telecom operators.

It was alleged that GrameenPhone, the largest mobile phone operator in the country, evaded tax worth TK 1.55 billion in 2003 fiscal year while AkTel's evasion totalled TK 280 million.

It further said ever since their inception in 1997, both the companies continued to evade tax and the amount continued to increased keeping in pace with the growth of their business volumes. Grameenphone, as per the bidding, was supposed to pay 15 per cent of its income to the government.

But in 2003-2004, it paid only TK 113.1 million, which was around TK 1.55 billion less than the amount payable under the agreement.

This was just the figures of alleged tax evasion in 2004. Grameenphone reportedly has been evading taxes since inception till date. The exact figure of evaded taxes should be a few billion Taka till date. But, the founder of this project in Bangladesh, Dr. Mohammad Yunus is fortunate and influential enough in finally handling all such 'hassles' and is well expected that, he can easily burry the entire issue from the attention of the authorities concerned.

In addition to allegation of tax evasion, Grameenphone is also accused of deceiving the country from billions of Taka by operating illegal Voice over Internet Protocol [Voip] business.

Illegal Voip business was first introduced in 1996 by a man named Helal Khan, who belongs to the cultural front of Bangladesh Nationalist Party [BNP]. He was able to establish intimate relations with several powerful figures in infamous Hawa Bhaban. He started the illegal Voip business from Dhaka's Banglamotor area based inside a building named Concord Tower. Helal Khan was selling illegal Void calling cards through his company named Western Network.

On December 26, 2006, members of Rapid Action Battalion [RAB] raided the illegal Void call center of Helal Khan and seized equipment and calling card valued over TK. 1 billion.

Helal Khan has been deceiving Bangladesh from revenue worth TK. 2-3 billion each year simply by operating the illegal Voip call center. Major stake of this illegal income was shared with influential Hawa Bhaban men as well as some of the members of the ruling Bangladesh Nationalist Party.

After the successful raid at Helal Khan's illegal Voip center, Rapid Action Battalion though lodged specific case; there was no action against this culprit as he successfully managed the authorities concerned. It is even learnt that, Helal Khan is back to Bangladesh from absconding and allegedly has re-started his illegal Voip business in the country.

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