Dhaka, Bangladesh — Bangladesh Milk Producers’ Cooperative Union Limited (Milk Vita), one of the country’s largest cooperative institutions, has reportedly fallen into a severe administrative and financial crisis. Serious allegations of corruption, embezzlement, abuse of authority, and intimidation have been brought against the organization’s Interim Management Committee Chairman, S.M. Amir Hamza Shatil, and Acting Managing Director (MD), Zahidul Islam.
According to documents submitted to government authorities, written complaints were filed with the Department of Cooperatives and 11 other high-level government agencies on June 10. The complaints allege that the accused individuals, along with a group of senior officials, have been involved in widespread financial irregularities and administrative misconduct.
Sources familiar with the complaint claim that a powerful syndicate operating within Milk Vita’s administration has been engaged in the misappropriation of substantial amounts of money. A four-page complaint, accompanied by supporting documents, was reportedly submitted to the Registrar and Director General of the Department of Cooperatives on June 3. Subsequently, copies were sent to the Prime Minister’s Office, the Ministry of Local Government, Rural Development and Cooperatives, the Anti-Corruption Commission (ACC), and several intelligence agencies.
The complaint alleges that Chairman Shatil has been exercising authority in violation of cooperative laws and Milk Vita’s constitution. Although he was reportedly appointed on an interim basis for a one-year term, complainants claim that he has continued to retain control beyond the expiry of his tenure.
The complaint further alleges that an Extraordinary General Meeting (EGM), scheduled for June 6, 2026, was called with the intention of introducing controversial reforms, including a tenfold increase in honorarium allowances, outsourcing operations through workforce reductions, and amending the Service Rules-2008 to facilitate unilateral recruitment. It is also alleged that proposals were made to create parallel executive positions such as Chief Operating Officer (COO) or Chief Executive Officer (CEO), potentially bypassing existing administrative structures and increasing opportunities for financial irregularities.
Acting Managing Director Zahidul Islam has also been accused of obtaining his position through unethical lobbying following the political changes of August 5. According to the complaint, he has allegedly been involved in the procurement of substandard and adulterated milk, tender-related commission practices, and withholding contractors’ payments unless commissions were paid.
Additional allegations include the reinstatement of suspended employees in exchange for financial benefits, as well as the collection of bribes from officials seeking promotions and salary increases. The complainants claim that certain officers were allegedly required to pay approximately BDT 200,000 for promotions and significantly larger amounts for salary adjustments.
The complaint also names an alleged syndicate of 11 officials who are said to have assisted the Chairman and Acting MD in carrying out various irregular activities. According to the complainants, these individuals have been involved in transfer-related corruption, recruitment irregularities, procurement issues, adulterated milk collection, and questionable tender processes.
Furthermore, labor representatives claim that employees and elected union leaders who refused to comply with allegedly unlawful directives have faced transfers, show-cause notices, and threats of dismissal. Reports indicate that approximately 200 to 300 workers and employees have been subjected to administrative pressure, including disciplinary proceedings.
Leaders of the Milk Vita Collective Bargaining Agent (CBA) have reportedly organized demonstrations and meetings in protest against these actions. Several union leaders, including the General Secretary, have also filed cases before the Labour Court under Section 187 of the Bangladesh Labour Act, 2006, challenging what they describe as unlawful transfer orders issued by the administration.
The allegations have reportedly generated significant concern among cooperative members, dairy farmers, employees, and other stakeholders. In their applications submitted to the authorities, the complainants have made four key demands:
- Formation of a High-Level Investigation Committee: Establish an independent and impartial committee to investigate all allegations and publish its findings promptly.
- Restriction on Chairman’s Membership and Authority: Prevent the current Chairman from obtaining or retaining membership in the central cooperative body in violation of applicable laws and regulations, and stop any misuse of authority through Extraordinary General Meetings.
- Temporary Administrative Measures: Issue show-cause notices and consider temporary suspension of the accused individuals to ensure a fair and unbiased investigation.
- Protection of Employees and Administrative Intervention: End alleged harassment and intimidation of employees and ensure a safe working environment within the organization.
The petition was reportedly signed by numerous stakeholders, including cooperative members, dairy farmers, officers, employees, and representatives such as Mofiz Sikder, Nazrul Hawlader, Karim Matabbar, and Narayan Ghosh.
The allegations have intensified concerns regarding governance and accountability within Milk Vita. Employees, workers, and cooperative members are reportedly demanding intervention from the government and relevant authorities to restore transparency and institutional stability.
Right of Reply
Repeated attempts were made to contact Interim Chairman S.M. Amir Hamza Shatil and Acting Managing Director Zahidul Islam for their comments regarding the allegations. However, their responses could not be obtained before publication.