The "Dhaka Art Summit" is held regularly,
featuring artworks from home and abroad. It includes renowned international
artists, scholars, art enthusiasts, and collectors. Organized by the Samdani
Art Foundation, led by the couple Rajeeb and Nadia Samdani, the Samdani Art
Foundation's collection of artworks is quite impressive. It ranges from the
paintings of Bangladeshi artist SM Sultan to contemporary Korean sculptor
Haegue Yang’s works.
Rajeeb Samdani has recently come into the spotlight not
just as an art collector but also as a supplier. Following the ousting of
former Prime Minister Sheikh Hasina on August 5 during the student uprising,
her younger sister Sheikh Rehana's residence in Gulshan was set on fire and
looted. During this time, several valuable artworks were reported stolen, which
are said to have been supplied by Rajeeb Samdani.
Rajeeb Samdani, a former director of City Bank, has
gained significant recognition for international and local artworks over the
past decade. It is known that the Tate Gallery in the UK collects artworks
globally through various committees. In 2012, the institution established the
South Asia Acquisitions Committee (SAAC), co-founded by Rajeeb Samdani and Lekha
Poddar, with Nadia Samdani joining later. That same year, the first Dhaka Art
Summit was held in Bangladesh, organized by the Samdani Art Foundation.
According to The Art Newspaper, Rajeeb Samdani is also associated with
institutions like the Parasol Unit in the UK, the Delfina Foundation, the New
Museum in the US, Kunsthalle Basel in Switzerland, and the Alserkal Avenue
Cultural Committee in Dubai, all of which are related to art and artworks.
Through the biennial Dhaka Art Summit, Rajeeb Samdani
caught the attention of the country's ruling powers. So far, six editions of
the Dhaka Art Summit have been held, with the fifth edition in 2020 being
particularly notable. In celebration of the centenary of Bangabandhu's birth, a
special exhibition featuring his photographs was organized, attended by
then-Prime Minister Sheikh Hasina, her sister Sheikh Rehana, and her daughter
Saima Wazed Putul. At this event, Rajeeb and Nadia Samdani came closer to the
Sheikh family. The following year, in 2021, to gain Sheikh Hasina's favor, he
jointly organized an exhibition at the National Academy of Fine Arts in
collaboration with the Center for Research and Information (CRI) focusing on
various activities of Bangabandhu Sheikh Mujibur Rahman from 1971-72.
The Dhaka Art Summit has become a gathering for art
lovers and collectors from home and abroad. Wealthy connoisseurs from the
Middle East have enriched their collections by acquiring artworks from various
regions of the world, with some reportedly collecting pieces from Bangladesh.
While direct buying and selling of artworks did not occur at the summit, it has
served as a significant platform for networking among art collectors.
Investing in artworks has become a significant avenue for
money laundering and legitimizing black money globally. According to data from
the information service company Art and Object and the financial crime
monitoring organization Comply Advantage, collectors typically acquire
artifacts or artworks through auctions. They are often traded multiple times
beforehand to present these items safely at public auctions. Once acquired,
these assets can serve as tools for legitimizing illegal funds. This process,
known as "layering," often involves obscuring black money through
several transactions. The lack of relevant regulations complicates the
valuation process of such assets worldwide. Consequently, alongside laundering
black money, substantial sums are siphoned off from various parts of the world
yearly. Furthermore, due to the anonymity conditions in auctions, authorities
and law enforcement agencies struggle to uncover genuine information about
these transactions.
According to a relevant source, a significant oligarch
class has emerged in the country over the past 15 years through financial
looting. They have established the collection and trade of artworks for money
laundering. The Dhaka Art Summit further opens up opportunities for this
oligarch class to gather. These oligarchs spend a portion of their immense
wealth on collecting art for pleasure, leading to a rise in the prices of
established Bangladeshi artists' works. There are allegations that Rajeeb
Samdani became part of this class through the Dhaka Art Summit. In the
meantime, he has acquired citizenship in the Caribbean nation of Saint Kitts
and Nevis and purchased property in London, UK.
In February of this year, the Department of Environment
fined Rajeeb Samdani BDT 5.017 million for allegedly cutting soil from a nearby
hill to fill his land for a five-star resort project in Fatehpur, Gowainghat,
Sylhet. Additionally, his company, Fatehpur Estate Limited, was accused of
starting construction on the resort project without obtaining the necessary
clearance.
There are allegations that on August 5, numerous artworks
were looted from the homes of Sheikh Rehana and former Prime Minister's private
art and investment advisor Salman F Rahman. Among the stolen pieces from Sheikh
Rehana's house were valuable artworks by Luis Piza, SM Sultan, Kamrul Hasan,
and Murtaza Bashir, valued at least BDT 750 million. Additionally, valuable
artworks worth nearly 2 billion were stolen from Salman F Rahman's residence. A
source informed Bonik Barta that Rajeeb Samdani may be involved in these
thefts, and an investigation is needed. Neighbors also reported that nearby elites
were taking away valuable artworks and paintings while the destruction
occurred.
Currently, Rajeeb Samdani is best known as the head of
the Samdani Art Foundation and the organizer of the Dhaka Art Summit. However,
he initially gained recognition in the business world as one of the founders of
Golden Harvest Group, which started in the commodity trade and later expanded
into frozen food. He also introduced Domino's Pizza to the country in a joint
venture with an Indian company.
However, as the prestige of his foundation has grown over
the past decade, the listed company Golden Harvest Agro Industries has
weakened. The company has faced allegations of failing to return investors'
money from bonds and misusing funds raised through rights issues. Additionally,
there are accusations that the company's money has been spent on the
foundation.
Efforts to contact Ahmed Rajeeb Samdani, chairman of
Golden Harvest Group and co-founder and trustee of the Samdani Foundation, have
not yielded any response, as he is reportedly abroad.
Golden Harvest Agro Industries had announced plans to
establish a nationwide cold chain network, with the International Finance
Corporation (IFC) expected to be involved in the joint venture. However, this
initiative has yet to be realized. In 2019, Golden Harvest entered the
franchise business for Domino's Pizza in the country in partnership with an
Indian company but later sold its 49 percent stake in that Indian firm.
Ahmed Rajeeb Samdani was quite active in the frozen food
market and new ventures for some time. However, as the Dhaka Art Summit
expanded, he became increasingly involved. Consequently, the listed company's
financial and business situation has been declining steadily. The company
attributes this downturn to the impacts of COVID-19. However, others disagree,
pointing out that businesses in other sectors of the country have recovered
from COVID-19 much earlier.
Golden Harvest began its business journey in 1997 through
commodities. The group later expanded into information technology, real estate,
infrastructure development, logistics, dairy, aviation, and insurance. In 2013,
Golden Harvest Agro Industries was listed on the country's stock market,
raising BDT 750 million by selling shares at BDT 25 each (BDT 15 premium). In
2017, the company issued bonds worth BDT 500 million. Two years later, in 2019,
Golden Harvest raised BDT 899.3 million through a rights share issue. As of the
end of March this year, the total short- and long-term loans for Golden Harvest
Agro Industries stand at BDT 2.15 billion.
Since entering the stock market, Golden Harvest's revenue
and profit graph was upward until the fiscal year 2018-19. However, from the
fiscal year 2019-20 onwards, the company's financial and business situation has
been steadily declining. The company has incurred losses for three consecutive
years. In the first three quarters of the latest fiscal year 2023-24
(July-March), the company reported a loss of BDT 65.7 million.
Mohammad Shahiduzzaman, the Chief Financial Officer (CFO)
of Golden Harvest Agro Industries, told Bonik Barta, "Due to the poor
business condition of the company, we haven't generated the expected revenue.
As a result, we have been unable to return the bond funds. We have communicated
with investors and will resolve the issue of returning the money through
discussions. The BSEC's investigation is still ongoing, and we are providing
them with the requested information. We cannot comment further on this matter
until the investigation is formally concluded and a report is submitted."
Regarding Golden Harvest's sponsorship of the Dhaka Art
Summit, he said, "Many participants, both local and international, attend
the art summit. The sponsorship was part of the company's branding efforts. No
money was given to organize the summit, but some funds were spent on creating
banners for its promotion."
There are allegations against Golden Harvest that the
funds raised from the stock market were not spent in the sectors initially
intended. The Bangladesh Securities and Exchange Commission (BSEC) is
investigating this issue. Recently, BSEC officials visited the company's
factory. It has been reported that the money collected through the rights share
issue was used to repay loans. Additionally, the funds supposedly invested in
the factory and for purchasing refrigerators have not been spent there. While
the unspent funds were kept in fixed deposits at the bank, the company also
took loans roughly equivalent to those fixed deposits. The BSEC's investigation
is ongoing, but officials believe the money raised through the rights share
issue has been redirected to different sectors.
In 2017, Golden Harvest initiated a bond issue worth BDT
500 million but ultimately managed to collect only BDT 340 million. Investors
in the company’s bonds include Standard Bank, Bangladesh Commerce Bank, IPDC,
IIDFC, and Delta Life Insurance Company. However, the company has not repaid
the funds since the bond was issued. Initially, partial coupon payments were
made to bond investors, which was later halted. In this situation, investors
have approached the BSEC and the Green Delta Capital trustee to recover their
invested funds.
Delta Life Insurance Company invested BDT 120 million in
Golden Harvest's bonds. So far, the company has not received the principal
amount or coupon payments. The insurance company has also lodged a complaint
with the BSEC regarding this issue. When asked about it, Milton Bepari, CFO of
Delta Life Insurance Company, told Bonik Barta, "As of the end of August
this year, the total amount due, including the principal and interest from the
bond investment, is BDT 236.5 million. However, Golden Harvest is not returning
the funds. We have sent letters to the trustee and the BSEC regarding this.
There has been no positive progress in recovering the dues yet."
Non-bank financial institution IIDFC Limited has also
faced difficulties after investing in Golden Harvest's bonds. The total amount
due to the institution for its bond investment has reached BDT 75 million. When
asked about this, Mohammad Golam Sarwar Bhuiyan, Managing Director of IIDFC,
told Bonik Barta, "We have not received any returns on our bond investment
for two years. We have contacted the BSEC and the trustee regarding the
recovery of our funds."
Green Delta Capital Limited serves as the trustee for Golden Harvest's bonds. The trustee has informed the BSEC about the failure to return funds to bond investors. Golden Harvest officials attended a hearing at the BSEC, where they indicated they would submit a plan for returning the funds, but they did not follow through. When asked about this, Mohammad Sohrab Hossain, Chief Investment Officer of Green Delta Capital, told Bonik Barta, "Five investing institutions are owed a total of BDT 392.9 million by Golden Harvest, including principal and coupon payments. The latest letter regarding the payment was sent to Golden Harvest on August 29, but they have not yet responded."