During the regime of deposed Prime Minister Sheikh Hasina, financial fraud and irregularities became increasingly common, with many high-profile cases making headlines.

Among the most notorious figures is Obaidul Karim, Chairman of Orion Group, who gained infamy for financial frauds and evading legal consequences, often attributed to his political connections.

Orion Group, a conglomerate involved in diverse sectors such as pharmaceuticals, power, IT, and apparel, saw Karim rise as a business tycoon, largely due to his close ties with the Awami League. He has long been accused of leveraging these connections to secure lucrative government contracts and avoid legal scrutiny.

Karim, now in his 70s, was sentenced to 48 years in prison in 2007 for financial fraud, but he has remained above the law, thanks to political patronage.

Allegations against him range from money laundering, embezzlement, and tax evasion to inflating project costs, misappropriating funds, and securing favorable loan terms through dubious means.

Orion Group Chairman Mohammad Obaidul Karim 

Orion Group’s involvement in various power plant projects has been riddled with controversy. The company is alleged to have secured government contracts through questionable means, amassing significant profits from inflated capacity charges.

For instance, Karim partnered with Awami League leaders in his power ventures after Hasina assumed power in 2009, with figures such as Mirza Azam, Alauddin Ahmed Nasim, and Shamim Osman reportedly having stakes in Orion’s power plants. This political support allegedly allowed Karim to funnel billions from the power sector.

Orion Group has been implicated in misappropriating over Tk 7,000 crore, including Tk 2,500 crore in bank loans and Tk 4,500 crore from inflated capacity charges for seven power plants.

These ventures involved several Awami League leaders, with the company holding majority stakes in various plants across the country. In one instance, Orion owned 96% of a power plant in Sonargaon, while Shamim Osman held the remaining 4%.

Additionally, Orion Power Unit 2, with a capacity of 635 MW, is technically owned by China’s Fujian Long Energy and Dubai’s FirstGen Energy, but the ownership allegedly traces back to Karim and his son, Salman Obaidul Karim, raising further concerns about money laundering through foreign investments.

Despite being convicted in three separate financial cases related to money laundering and illegal wealth accumulation, Karim continues to evade justice.

His legal cases, filed during the 2007-2008 caretaker government, remain unresolved, with trials languishing in legal limbo. In 2007, he was sentenced to life imprisonment for embezzling nearly Tk 7 crore from Oriental Bank, along with an additional five-year sentence for laundering Tk 2 crore. Another 13-year sentence was handed down for amassing illegal wealth worth Tk 50 crore.

Karim’s financial dealings extend beyond the power sector. The Bangladesh Financial Intelligence Unit (BFIU) recently froze the bank accounts of Karim and his family, signaling a renewed effort to curb his influence. Orion Group’s total loan burden stands at over Tk 15,000 crore, with over Tk 1,000 crore in defaulted loans and additional liabilities, such as bank guarantees and letters of credit.

Orion’s financial misconduct also involves fraudulent activities across its numerous subsidiaries, many of which are defunct. Through these subsidiaries, Karim borrowed large sums without proper documentation or collateral. For example, Belhasa Accom and Associates Ltd borrowed Tk 166.30 crore from banks, yet its Taxpayer Identification Number (TIN) was untraceable. In 2010, UAE-based Belhasa Engineering & Construction sued the company for defrauding its name in a flyover project.

Orion Pharma Ltd, another subsidiary, borrowed over Tk 2,228 crore from 12 financial institutions. Of this, more than Tk 128 crore defaulted, Tk 101 crore became substandard loans, and Tk 50 crore turned into bad loans. The company also owes over Tk 255 crore in bank guarantees and Tk 150 crore in LC payments.

Despite his notorious past, Obaidul Karim continues to thrive financially, bolstered by his political connections, leaving many to question whether justice will ever be served.

When contacted, Orion Group representatives did not respond to inquiries via phone, email, or text messages.