Binimoy app linked to shell company associated with Sajeeb Wazed Joy: BB governor 

Highlights

• The governor suggested that VAT should not exceed 10% from a product's import to production and sale
• Major reforms in revenue management would take at least two to three years, he said
• The current government will not have that time, but we will begin the process, he added

The Binimoy app, which allows users to transfer money seamlessly between different bank and MFS accounts, was linked to a shell company associated with Sajeeb Wazed Joy, son and former ICT adviser of ousted prime minister Sheikh Hasina, said Bangladesh Bank Governor Ahsan H Mansur.

This new accusation adds to the pile of allegations against Sheikh family members, involving irregularities and corruption through "abuse of power" during Sheikh Hasina's 15-year regime.

Joy launched the Binomoy app in November 2022.

A joint venture of Hong Kong based Saint ventures and local Fintech Solution Ltd, Velwire Ltd, Orion Informatics Ltd and Microsoft Bangladesh were engaged in developing the platform.

Nasrul Hamid's son Zareef Hamid was associated with Fintech Solution and Velwire. 

While the Bangladesh Bank was already developing its own interoperability platform (NPSB), the ICT Division controversially mandated the use of Binimoy instead, said former BASIS President Fahim Mashroor. 

Mashroor criticised this decision, stating that the Tk65 crore platform proved ineffective in achieving its intended purpose.

"Why ICT Division took the responsibility is a big question" said Fahim Mashroor, a member of the planning ministry taskforce formed by the interim government.

Speaking as the chief guest at a roundtable titled "Challenges and Prospects of Digital Transactions: VAT Increase Perspective", organised by Prothom Alo today (29 January), the central bank governor talked about other issues facing the country.  

He stressed the need for full digitisation of the country's tax system, warning that corruption in revenue management will persist without a fully online value-added tax (VAT) and tax collection process. "I believe the current 15% VAT is too high for everyone to bear," he said.

The governor also suggested that VAT should not exceed 10% from a product's import to production and sale.

He added that major reforms in revenue management would take at least two to three years, saying, "The current government will not have that time, but we will begin the process."

Regarding inflation control policies, Mansur said, "Some say policies are not working, but I would say policy is working to control inflation. Even in developed nations, it takes 10 to 12 months to see the impact of measures. We expect to see positive results by June."

He also pointed out the sluggish growth in bank deposits, stating, "Currently, deposit growth in Bangladesh's banking sector is very low. I believe it should be at least 14-16%."

The governor said the government is looking for alternative methods to Letter of Credit (LC), used for international trade.

"We are trying to get out of the LC method. A feasibility study will be conducted in the next three months to find out LC alternatives that are used in developed countries," he said