Financial Express print this

Plundering shareholders' money


NILOY Cement, a public limited of Nitol Groups, could raise share capital worth millions of takas, holding out promises about juicy returns on investments, a decade back. But it has failed to compensate the share holders and thus one hundred Taka share of it is hardly worth Taka fifty in our share markets today.
Nitol group could manage to raise share capital under Nitol Insurance Co. few months back but this share is hardly worth Taka 70 today, though it was sold at Taka 100 each to the investors at the time of flotation of its initial public offering (IPO).
Nitol is advertising through media under its fidelity assets and securities, indicating very good returns on investments. But should the investors trust Nitol in view of past performances as was narrated above? The Chief Executive Officer (CEO) of Nitol failed to get elected as the FBCCI chief and in the event he would have got himself elected, he would have been a member of the entourage of the Prime Minister during her visits to foreign countries as usual.
The investors in the country's capital market would definitely like to question the performances of companies managed by the leaders of various business bodies in respect of dividends, capital gains and so on. Real investigations would have revealed more glaring examples about corruption, I am certain.
Nitol group is sponsoring sports in the country and it is a noble gesture but this act is tantamount to a "Robbing Peter to pay Paul" policy by the group. Its chairman continues to appear in the media addressing about cautious driving while an accident may cause disaster for the whole life. As a shareholder of Niloy Cement and Nitol Insurance Co., I am sorry to remind all concerned that thousands of investors have faced disaster greater than road accidents by investing in Nitol group shares.
The Prime Minister mentioned the share market scandal of 1996 while addressing the nation on the occasion of the completion of four years of BNP rule. But it is mystery why her administration is not punishing the culprits for eradicating corruption in accordance with the pledge made before the last general election.
Many a public limited companies in sectors like textile, tannery, food, paper, fisheries, insurance, cosmetics etc., have plundered shareholders' money passionately but many of the CEOs of those dividend-defaulting companies are VVIPs, VIPs, CIPs, MPs, civil society leading personalities, top industrialists and even cabinet members!
Let good sense prevail. Let the Security and Exchange Commission do justice to investors. We do not like to be the corruption champion, again and again!
Mahbubur Rahman
34 Khan A. Sobur Road