Dr.
Jonaid Shafiq is a renowned pain medicine specialist in Bangladesh. The founder
of the Pain Medicine Unit at Bangabandhu Sheikh Mujib Medical University
(BSMMU) and an influential figure at Japan Bangladesh Friendship Hospital, Dr.
Shafiq has recently become a prominent figure in the country’s financial
sector. As an entrepreneur of a publicly listed company and a director of a
bank, he aimed to establish himself as a major player in the financial
industry. A cousin of former land minister Saifuzzaman Chowdhury Javed, Dr.
Shafiq has reportedly secured over BDT 5 billion from the stock market and banks
under the name of his company, Navana Pharmaceuticals. However, allegations
have surfaced that he used this money for personal interests rather than for
the company’s growth.
Navana
Pharmaceuticals’ board chairman, Anisuzzaman Chowdhury, is the brother of
Saifuzzaman Chowdhury and the son of late Awami League leader Akhtaruzzaman
Chowdhury from Chattogram. His wife, Imrana Zaman Chowdhury, also serves as a
director. Dr. Jonaid Shafiq’s wife, Masuma Parvin, is the managing director of
Navana Pharmaceuticals and holds a position on the board.
The
late industrialist Jahurul Islam and his successors were originally the main
founders of Navana Pharmaceuticals. However, before Dr. Jonaid Shafiq joined
the board in November 2020 and his wife in December of that year, most members
of the Islam family had left the company. Only Jahurul Islam’s son, Manzurul
Islam, remained as a director until the 2022-23 fiscal year and now holds only
a shareholder position. Currently, Dr. Jonaid Shafiq, Anisuzzaman Chowdhury,
and their associates have significant control over Navana Pharmaceuticals.
As
of June this year, Navana Pharmaceuticals’ short- and long-term loans amounted
to BDT 850 million. Since Dr. Jonaid Shafiq joined the board, the company’s
debt has been steadily increasing. By the end of March 2022, before the
company’s initial public offering (IPO), its debt had risen to BDT 2.92
billion. Most recently, by March of this year, the company’s debt reached BDT
4.75 billion.
Before
its IPO, Navana Pharmaceuticals had a paid-up capital of only BDT 801,500 as of
June 2020. However, within a year, it grew to BDT 802.3 million, primarily
through the issuance of placement shares. Capital was raised from 27
individuals and entities. Among these, 5.6 million shares have been issued in
favor of NMI Holdings Limited, 8.7 million shares to Stratus Holdings Limited,
and 5.5 million shares have been issued to Montenia Holdings Limited. NMI
Holdings is registered in Guernsey, an offshore tax haven often used for tax
avoidance purposes. Stratus and Montenia Holdings are registered in Dubai, UAE.
Navana
Pharmaceuticals has long reported that 27.73 percent of its shares are held by
foreign investors, a figure that remains unchanged as of August this year. The
shares held by the three foreign entities were reported as foreign investments.
After the IPO, the shareholding by these three companies amounted to 18.52
percent.
In
2022, Navana Pharmaceuticals raised BDT 750 million from the capital market
through a book-building IPO. Of this, BDT 211.8 million was used to repay
loans. In March of this year, the Bangladesh Securities and Exchange Commission
(BSEC) approved the issuance of BDT 1.5 billion in bonds to further reduce the
company’s debt. Overall, Navana Pharmaceuticals has secured BDT 5.5 billion
from the stock market and banks over the past four years.
Before
its IPO, in the 2019-20 fiscal year, Navana Pharmaceuticals had net sales of
BDT 3.14 billion and a net profit of BDT 137.4 million. In 2022-23, net sales
grew to BDT 5.7 billion, with a net profit of BDT 356.9 million. In the first
three quarters (July-March) of the 2023-24 fiscal year, the company recorded
net sales of BDT 5.03 billion and a net profit of BDT 330 million.
According
to IQVIA, Navana Pharmaceuticals did not rank among the top 20 pharmaceutical
companies in the country in 2023. Its dermatology drugs are more frequently
prescribed by physicians, and its representatives promote gastric medicines to
doctors at Dhaka Medical’s outpatient department. The company also produces
veterinary and poultry medicines, but it has yet to reach the top tier in these
markets.
Dr.
Jonaid Shafiq was previously a director at United Commercial Bank and is
currently serving on Meghna Bank’s board as director. He also held the vice
chairman position at Delta Life Insurance Company, joining the board as a
representative of the publicly listed company Genex Infosys Limited. Dr. Shafiq
has maintained close ties with several figures in the financial sector,
including Mohammad Adnan Imam, chairman of Genex Infosys, and former BSEC
chairman Professor Shibli Rubayat Ul Islam. According to sources, Dr. Shafiq
leveraged his relationship with the former BSEC chairman to secure approval for
Navana’s IPO and the bond issuance this year. Additionally, he attempted to
oust the chairman of Delta Life’s board through Shibli Rubayat, though this
effort ultimately failed, leading to his resignation from Delta Life’s board in
December 2023.
BSEC
and financial industry insiders say that Dr. Jonaid Shafiq, as a cousin of
former land minister Saifuzzaman Chowdhury, has benefited from various
opportunities in recent years. This influence was particularly evident in
gaining approvals for the IPO and bonds, as well as obtaining loans from banks.
Regulators are investigating whether these loans were used for the company’s
interests or for Dr. Shafiq and his associates’ personal benefit. He has
frequently claimed to have substantial cash reserves and is reported to own
assets in London, United Kingdom. Some believe the shares sold before the IPO
to three foreign entities were linked to Saifuzzaman Chowdhury and his family.
It is reported that Saifuzzaman’s family holds assets worth billions in the
United Kingdom and UAE. Additionally, Dr. Shafiq is said to have investments in
various companies with Abul Khayer Hiru, a well-known investor in the stock
market. Since the political shift in August, Dr. Jonaid Shafiq has been
attempting to establish ties with influential leaders of a prominent political
party.
Attempts
to contact Dr. Jonaid Shafiq for comment were unsuccessful. Despite sending him
text messages, he did not respond.
When
asked about Navana Pharmaceuticals’ loans and placement shares, company
secretary Lawrence Shyamal Mallik told Bonik Barta, “Our sales have increased
compared to previous years. Consequently, the company’s loans have grown to
meet the working capital needs. The placement shares sold to three foreign
companies are not related to Saifuzzaman Chowdhury or his family.”
Mohammad
Abu Hurayra, the chief financial officer (CFO) of Navana Pharmaceuticals during
the IPO process, left the company in June. He commented on the loans, saying,
“The company’s loans increased primarily to meet its working capital needs. The
devaluation of the Bangladeshi Taka against the dollar also contributed to the
rising debt. We initiated the bond issuance to repay the loans, but the
political changes in the country led to lower-than-expected subscriptions.”
Regarding the shares sold to three foreign entities before the IPO, he stated,
“The company earned foreign currency by selling shares to these foreign
companies, which were chosen by previous sponsors.” When asked if there was any
connection between these companies and Saifuzzaman Chowdhury or his family, he
added, “The ownership documents provided by these foreign companies at the time
of the share purchase showed no links to them.”