Nearly Tk 5 billion in revenue from Rangpur City Corporation (RaCC) has allegedly been embezzled through manipulation of its software and server systems. According to the allegations, the fraud involved altering the software’s core code, creating fake and non-existent “ghost” holding accounts, understating taxes on actual holdings, concealing previous arrears and even forging bank seals. A group allegedly close to former mayor and Jatiya Party presidium member Mostafizur Rahman Mostafa has been accused of involvement in the irregularities. However, the allegations have not yet been independently verified in full.
According to an investigation, a tax-management software system was introduced at RaCC after 2015 with funding from the Japan International Cooperation Agency (JICA). The system was designed with security measures, with confidential passwords reportedly meant to be kept by the mayor, chief executive officer and revenue officer. However, allegations suggest that in 2019, the server’s core code was altered without any administrative or technical approval. This allegedly weakened the software’s security and resulted in control over five key accounts—including those of the mayor and chief executive officer—being taken over by a particular group.
The name of Ariful Islam, a computer operator in RaCC’s tax collection branch and former district convener of the Jatiya Chhatra Samaj, has emerged in connection with the alleged manipulation. Colleagues familiar with the matter claim that he was close to the former mayor. It has been alleged that Ariful Islam and his associates used their technical control over the software to alter or conceal revenue collection data. They are also accused of deleting digital logs and tracking histories of daily activities from the server to conceal evidence of irregularities.
The matter came to the attention of RaCC Secretary and Acting Chief Executive Officer Rakib Hasan, who sent a letter to the Secretary of the Ministry of Local Government on January 20 this year. The letter reportedly referred to large-scale irregularities in the collection of holding taxes and alleged losses of substantial amounts of revenue. Information about the alleged manipulation of the software and irregularities in revenue collection subsequently emerged during an investigation based on the letter.
The investigation further found allegations that, in an attempt to conceal shortages in government revenue, some genuine old accounts with relatively low tax liabilities were deleted from the software. New accounts were then allegedly created in their place using fictitious or unidentified names, with large amounts shown as outstanding taxes. This allegedly allowed the perpetrators to conceal revenue shortfalls and make the figures appear balanced in official records.
An analysis of data from the 2024–25 fiscal year reportedly raised questions about approximately 30,000 of RaCC’s total 59,670 holdings. Among them, information relating to 17 allegedly fictitious holding accounts was identified during the investigation. A total of Tk 17,165,291 was shown as outstanding against these 17 accounts.
For example, holding account No. ‘28-140-0980-00’ was registered under the name ‘Akram’ and showed outstanding tax of Tk 5,657,292. Another account, listed under serial number 836, contained only the English letter ‘S’ instead of a proper name and showed Tk 4,995,000 in outstanding tax against an address in Alamnagar. Similarly, holding No. ‘27-122-0199-01’ was listed under the name ‘Grameen Tower’ with outstanding tax of Tk 3,720,750. According to the investigation, no such holdings could be found during field visits to the respective areas.
Irregularities were also allegedly found in the tax records of the office of the private organisation ‘ASOD’ on GL Roy Road. The property had outstanding taxes dating back to the 2007–08 fiscal year. After the property was subsequently sold to ‘Eco Social Development’, the previous tax arrears were allegedly concealed, and a bill of only Tk 78,812 was issued for the 2024–25 fiscal year. The arrears period was also allegedly reduced on the bill to make it appear that the outstanding taxes dated back only to the 2021–22 fiscal year.
The alleged manipulation came to light when the new owner applied to change the holding’s ownership records. Subsequently, the city corporation issued a revised bill showing actual outstanding taxes of Tk 697,650, which was then paid by Eco Social Development.
A similar discrepancy was reportedly found in a holding owned by Sarwar Hossain and Golam Nasir on Tahsin Uddin Road. A final receipt was issued after showing only Tk 6,386 as tax for the 2025–26 fiscal year, with no arrears. However, an examination of the city corporation’s internal tax records showed that approximately Tk 28,173 was actually outstanding against the holding.
Golam Nasir, the property owner, alleged that the disputed bill had been prepared through Assistant Tax Collector Md. Ayaz Uddin. Following an initial investigation that reportedly found evidence supporting the allegation, Ayaz Uddin was subsequently suspended, according to sources.
Asked about the allegations, former mayor Mostafizur Rahman Mostafa said, “These matters are quite old. Those who collected the taxes in the revenue branch at the time would be in a better position to explain them.” He declined to make any further comment on the matter.
The allegations require thorough and independent verification through examination of the software’s server logs, records of code modifications, holding registers, bank statements and revenue collection records. A neutral investigation involving the relevant officials and employees could help establish the actual amount of revenue lost and determine the responsibility of those involved.