The Bangladesh Anti-Corruption Commission is probing a syndicate sending workers to Malaysia, allegedly with support from Bangladeshi and Malaysian officials. The syndicate is accused of embezzling some RM8.9 billion in the labour supply scheme, the Dhaka Tribune reports.
The former MPs under probe are Nizam Uddin Hazari, Masud Uddin Chowdhury and Benazir Ahmad as well as ex-finance minister AHM Mustafa Kamal. The syndicate sent some 450,000 workers abroad in one and a half years, but many ended up unemployed and returned home empty-handed.
They allegedly made the funds by overcharging workers to secure jobs in Malaysia beyond the RM2,941 limit set by the Bangladeshi government. Each worker reportedly paid an average of labour RM20,253.
Source : X
Bangladesh’s anti-graft agency has started an investigation into an alleged syndicate led by ex-MPs of the Awami League government, accused of embezzling 24,000 crore Bangladeshi taka (RM8.9 billion) under the guise of sending workers to Malaysia, says a report.
Dhaka Tribune reported that the syndicate, involving ex-finance minister Mustafa Kamal, retired general Masud Uddin Chowdhury, former MPs Nizam Uddin Hazari and Benazir Ahmed, had sent around 450,000 workers abroad within one and a half years.
However, many of these workers were unable to find jobs and returned empty-handed.
Bangladesh’s Anti-Corruption Commission formed a three-member team to investigate the illegal assets and operations of the four ex-MPs.
The report also cited sources as saying that the syndicate operated with the support of senior officials from both the Bangladeshi and Malaysian governments.
It also said that workers were charged far above the government’s set cost of 79,000 Bangladeshi taka (about RM2,940), with the average worker paying 544,000 Bangladeshi taka (about RM20,280) to secure a job in Malaysia.
The report said the syndicate allegedly amassed 24,000 crore Bangladeshi taka by overcharging workers, while the Bangladeshi expatriates’ welfare and overseas employment ministry took no action, instead facilitating the syndicate’s activities.
Malaysia fixed the number of agencies from Bangladesh for recruitment of workers to 25 in 2022 when the labour market reopened after the Covid-19 pandemic. In 2023, it was announced that this number would be increased to 100.
According to Dhaka Tribune, the selected agencies were reportedly linked to Kamal, his family, other former MPs as well as Awami League leaders.
It also said that Hazari’s company, Snigdha Overseas Ltd, reportedly sent only 100 workers abroad in the first three and a half years after obtaining its licence. However, the company sent 8,000 workers to Malaysia in just one and a half years after the labour market reopened.
The report added that a firm managed by Chowdhury, Five M International, allegedly sent 8,592 workers after the labour market reopened, a significant increase from the 2,500 workers it sent to the Middle East before that.
Ahmed International, owned by Ahmed, allegedly sent 7,849 workers to Malaysia, up from just 238 workers, before the labour market reopened.
The report claimed that former Baira secretary-general Ruhul Amin Swapan played a key role in the syndicate, reportedly selecting 69 of the 100 agencies involved.
It said his agency, Catharsis International, sent 7,102 workers to Malaysia. The report named other agencies as BM Travels Ltd and Anannya Apurba, both linked to pro-Awami League figures.
Source : FMT
Malaysia named as key figure in Bangladesh’s anti-graft probe into migrant worker syndicate
The Malaysian government is under scrutiny by Bangladesh’s Anti-Corruption Commission (ACC) in its investigation into a labour market syndicate that allegedly saw authorities fraudulently pocketing monies in a migrant worker scam.
According to news reports on the matter, the ACC’s probe is centred on accusations against three former Bangladeshi MPs who are suspected of participating in the scheme, which is said to have seen a boost in activity once Malaysia entered the picture.
The ACC’s investigation reportedly involves several high-profile individuals, including the wife and daughter of former finance minister A.H.M. Mustafa Kamal, former lawmaker Nizam Uddin Hazari, ex-inspector-general of police Benazir Ahmed, Bangladesh Army retired lieutenant-general Masud Uddin Chowhurry, as well as their associates.
A three-member investigation team led by ACC deputy director Nurul Huda is understood to be heading the probe into the individuals’ illegal assets and operations.
An ACC spokesman told Dhaka’s The Financial Express yesterday that the inquiry has been launched due to allegations of the figures’ involvement in a “lucrative business operation” within the Malaysian labour market.
“Malaysia receives workers from 14 countries, including Bangladesh. However, such a syndicate system does not exist in any other country besides Bangladesh,” the report claimed, alleging that “high-ranking officials” from both governments are complicit in the network.
The allegations, as detailed by the English-language daily, claim that Nizam had in December 2018 obtained a licence for a recruiting agency called Snigdha Overseas Ltd to send workers abroad.
However, in the three and a half years after obtaining the licence, the agency is said to have sent only 100 workers overseas, with its business only picking up after it joined the “Malaysia Syndicate”, which saw “around 8,000” workers sent to Malaysia in the last one and a half years.
Another recruitment agency called Five M International, which was established by Masud in 2015, similarly secured approval to send 8,592 workers to Malaysia – a stark increase from the roughly 2,500 workers it previously sent to the Middle East.
Benazir’s recruitment agency Ahmed International, which ostensibly ranked fifth in the number of workers sent to Malaysia, facilitated the sending of 7,849 workers to Malaysia after a period of relatively slow dealings saw it deliver only 238 workers to other countries.
A total of 9,861 workers are said to have entered Malaysia through another firm, Orbitals Enterprise, owned by Mustafa’s wife Kashmeri Kamal and daughter Nafisa Kamal.
Agencies part of the network supposedly received a “network fee of at least BDT150,000 (RM5,592).”
In a separate report by Bangladeshi newspaper the Dhaka Tribune, the syndicate is said to have sent around 450,000 Bangladeshi workers abroad within just one and a half years, with many of them forced to return home empty-handed after they were “unable to find work”.
Workers, the report said, were charged far above the government-set cost of BDT79,000, with the average worker paying BDT544,000 to secure a job in Malaysia.
As such, the syndicate allegedly managed to amass BDT240 million by overcharging workers, while the Bangladeshi Expatriates’ Welfare and Overseas Employment Ministry supposedly took no action as it instead “facilitated” the syndicate’s activities.
“When the Malaysian labour market reopened in July 2022, the selection of recruiting agencies was left to Malaysia, with only 25 out of 1,520 Bangladeshi agencies being chosen, allegedly with no clear policy,” the report claimed.
It also said that Bangladesh Association of International Recruiting Agencies’s former general secretary, Ruhul Amin Swapan, played a key role in the syndicate, reportedly selecting 69 of the 100 agencies involved, with his own agency, Catharsis International, sending 7,102 workers to Malaysia.
Scoop has reached out to the Malaysian Human Resources Ministry and Home Ministry for their response to the accusations.
Source : Scoop
Study reveals 96% Bangladeshi workers going to M’sia face high recruitment debt, exploitation
A RECENT study conducted by four labour ethics and workers’ rights organisations — Verité, Sheva Consultants, BOMSA and WARBE-DF — has shed light on the challenges faced by migrant workers in Malaysia.
The study titled “Fostering Fee Accountability and Cost Tracking (FFACT)” presented findings that highlight the significant financial burden and exploitation experienced by migrant workers.
According to the study, a staggering 96% of migrant workers heading to Malaysia reported having to take at least one loan to cover recruitment fees, which include expenses for document acquisition, medical examinations, and travel to and from the host country.
Moreover, 82% of these workers had to acquire two or more loans, with 73% spending between 50% to 100% of their monthly salary to repay these recruitment debts.
Wage deception was another prevalent issue identified in the study, with 43% of respondents reporting receiving less pay than initially promised. The financial strain caused by recruitment debts led to significant daily worries for 63% of the surveyed workers.
The study conducted between 2018 and 2023, analysed 357 interviews and ultimately accepted responses from 240 migrant workers in Malaysia. On average, Bangladeshi migrant workers were found to pay approximately Tk5,44,00—an amount equivalent to at least one year’s wages in foreign employment.
Sheva Consultants Limited executive director Samara Khan noted the challenges faced by migrant workers in repaying their loans, often obtained from the informal sector.
“For this reason, there are no reliable data sources. However, our organisation has directly talked with the migrant workers. The workers need wages of at least one year to repay their loans and their interests,” Dhaka Tribune quoted her as saying.
“Companies and brands in Malaysia come under greater scrutiny of new Human Rights Due Diligence legislation and there is an increased demand for accurate, fair, and transparent recruitment cost data.”
Meanwhile, BOMSA general secretary Sheikh Rumana stressed the importance of nationwide awareness campaigns to educate workers about the risks associated with third-party transactions and overpayment.
The supply chain of migrant workers must be kept safe and secure, according to WARBE deputy director Shuhrawardy Hussain.
“If the government again pauses the official recruitment to Malaysia, the cases of human trafficking by sea will increase significantly.”
Furthermore, the study recommended several measures to address these issues including adherence to an employer-pays recruitment model as directed by the International Labour Organisation (ILO) and the Bangladesh Labour Act.
It also suggested active monitoring of the recruitment process by employers and brands, along with promoting transparency in labour supply chains and eliminating recruitment fees.
Efforts to integrate third-party roles into the recruitment process for efficient monitoring and control were also highlighted as crucial steps toward mitigating exploitation of migrant workers.
Source : Focus
The Coverage Malaysia
