The Daily Star report on SS Power I Limited contradicts cbjective journalism

The authorities of SS Power I Limited, a sister concern of S Alam Group, have questioned the objectivity of The Daily Star, one of the country’s leading English newspapers.

They describe the article titled “S Alam nexus laundered $815mn through two letters of credit (LCs)” as fake, motivated, and baseless.

S Alam Group, in a recent statement, said that the newspaper has resorted to questionable reporting practices, seemingly to exploit the current political situation in the country.

The statement expressed disappointment over The Daily Star’s consistent use of sensational headlines targeting the group, labeling such actions as defamatory and condemnable.

The group further criticised the article’s intention, implying it was aimed at garnering public attention, raising concerns about the newspaper’s commitment to truthful journalism.

According to The Daily Star, S Alam Group allegedly laundered $815.78 million (approximately Tk 10,000 crore) from Bangladesh between 2019 and 2023, depleting the nation’s foreign reserves.

The report also claimed that SS Power I Limited opened letters of credit (LCs) to import machinery for its 1320 MW coal-fired power plant in Chattogram, without any corresponding goods arriving in the country.

“We categorically reject the claims made in the article. It is a false allegation. It seems that either the report or the management of The Daily Star is being influenced by vested group looking to make an extra profit,” said the statement from S Alam Group.

Our responses to the false allegations are given bellow:

We firmly state that these accusations are entirely inaccurate and misleading. Contrary to the report’s claims, no funds have been transferred from Bangladesh in connection with the project. The necessary approvals and documentation are fully in place, and all payments to the Engineering, Procurement, and Construction (EPC) contractor, SEPCOIII, were made directly by project lenders through foreign currency loans, not from local sources.

Clarification of Facts

SS Power I Limited is a joint venture Independent Power Producer (IPP) responsible for constructing and operating a 2x660 MW coal-fired power plant in Banshkhali, Chattogram. The project is owned 70 percent by Bangladeshi companies and 30 percent by Chinese partners.

SSP signed key agreements with the Ministry of Power, Energy, and Mineral Resources (MPEMR) and the Power Grid Company of Bangladesh (PGCB) to ensure seamless operation. Additionally, a Power Purchase Agreement (PPA) with the Bangladesh Power Development Board (BPDB) governs the plant’s operations.

SSP entered into a turnkey EPC contract with SEPCOIII Electric Power Construction Company Limited, a Chinese firm, in December 2018. Since then, SEPCOIII has been responsible for procuring essential machinery and equipment for the project on a global scale.

Import Process and Financial Arrangements:

Under the terms of the agreements, SSP has been permitted to import materials without restrictions. Rather than utilizing LCs, the import process followed a different path. SSP used import permits and foreign loans to cover costs, ensuring that no funds left Bangladesh’s reserves.

The National Board of Revenue (NBR) and Customs Authority provided certificates to confirm the duty-free status of capital machinery, which is exempt from customs duties and VAT.

Payments to SEPCOIII are based on completed milestones, and funds are transferred directly from the loan account in Singapore. All transactions are in full compliance with Bangladesh Bank regulations, with Rupali Bank PLC managing loan utilization and submission of all relevant customs and payment documents.

Regulatory Compliance and Current Status:

While some contractual work remains incomplete, leading to outstanding payments, these are tied to pending milestones that SEPCOIII is expected to meet. Consequently, some Bills of Entry are still in process with Bangladesh Bank, but these will be cleared upon completion of the remaining project phases.

SS Power I Limited continues to operate transparently, coordinating with authorities and international contractors. The project is fully compliant with all regulatory and financial requirements.

The claims made by The Daily Star in its article are unfounded and serve only to propagate a false narrative. This type of misleading journalism undermines the public's trust and obscures important facts.

“We urge media outlets to engage in responsible, fact-based reporting, particularly during these challenging times for the country. It is essential to reject sensationalism and avoid advancing the interests of any vested parties through the spread of disinformation. We remain committed to the successful completion of the SS Power I Limited project and continue to work in full compliance with local and international laws and regulations,” it said.