[WSIS CS-Plenary] Regarding Beware of Earth Foundation!

[Hamidur Rahman]

Beware of  Earth Foundation! Bangladesh
Earth Foundation is the latest ploy of the controversial Khaled Hossain to swindle people and make millions. Already innumerable persons are being lured by lucrative offers and duped by dubious schemes. Without any government approval, Earth Foundation continues its underhand programmes. And one fine day it may simply close shop and disappear...
http://www.probenewsmagazine.com/index.php?index=2&contentId=3136
by ANWAR PARVEZ HALIM, Probe News
Hundreds of young men and women throng the Green Road-Panthapath intersection, lured by advertisements in the daily newspapers, offering attractive jobs for young and educated candidates. The prospective employer is none other than Earth Foundation (Earth being the acronym for Effective Assistance and Rehabilitation for Tormented Humanity).
Earth Foundation has opened office in several locations of the area, including a four-storeyed building at 69/G Panthapath, a number of floors of Chadrashila Tower and in a couple of other buildings of the vicinity.
In a matter of a year, Earth Foundation has created a sensation, offering employment for 35 thousand people, advertising for projects worth hundreds of crores of taka, all sorts of tenders and a host of other plans and programmes. Yet the foundation has no government approval for these massive schemes it has undertaken.
The head of this organisation is Khaled Hossain, a controversial character who has even been jailed on several occasions on charges of fraud and deception. And now he has spread a nationwide network, to cheat people further in a master plan of swindling and duplicity.
Already people are unwittingly stepping into his trap. They are signing up as members of Earth Foundation, paying large sums of money for membership. In fact, many prominent persons of society are working with Earth Foundation, enticed by fat salaries. They themselves are unaware of the actual character of Earth Foundation, its dubious aims and objectives. 
There is a fear though, particularly among more conscious groups, that at any given point of time, Khaled Hossain and his Earth Foundation may close shop and disappear, embezzling crores of taka of the public's money.
Not really an NGO
Earth Foundation is being projected as an NGO, but inquiries at the NGO Bureau reveal that there is no such organisation by this name registered there. It is registered under the Joint Stock Company's Society Act (1960) as a non-profit organisation.
Last March, PROBE News Magazine first published a report about the organisation: Earth Foundation: Million-dollar Dreams. [See PROBE Vol. 5, Issue 26]. At the time, Earth's directors Chaman Afroze, Mohiuddin Ahmed and Dr. Matiur Rahman said that Earth Foundation had various projects worth hundreds of crores of taka all over the 64 districts of the country. They said that they had no donors not did they have any specific funds. They said they relied on donations from their well-wishers.
The directors said that their programmes included family planning, training, public health, research, publications, micro and macro credit and more. They went as far as to say that that there would come a time when they would control the country's power and health sectors. They claimed that they would buy up Proshika and the other big NGOs of the country. These tall claims reeked with suspicion and now six months on, the suspicion is all the more tangible.
The organisation is now talking about Earth Foundation credit cards, joint investment schemes, a fisheries export zone and other ambitious projects. And newspapers, quite happy with the highly-paid advertisements, are regularly printing full page and half page colour ads regarding Earth Foundation's schemes. Some journalists are reportedly on their regular payroll. And Earth Foundation is doing its advertising though the advertising firm of the son of a major Bengali daily's editor. The fraud Khaled Hossain is thus planning to keep the media's mouth shut by dishing out these lucrative advertisements. Yet PROBE's investigations reveal that there are many serious allegations against Earth Foundation and its Chairman-cum-Executive Director.
Earth Foundation's head office has a staff of 233. At a field level it has employed 4000 persons. Once the appointments are complete, its total staff number will stand at 35 thousand. Till now it has been working in 14 districts. Within this month it will expand to 64 districts, according to Earth Foundation's Admin. Director Chaman Afroze. 
Chaman Afroze says that their Board of Advisors include former Secretary Abdullah Haroun Pasha, former cabinet Secretary Abdul Halim, Kamrul Islam Siddique, former Ambassador ATM Nazrul Islam, former Deputy Minister and Awami League leader Dhirendranath Shambhu and former Air Chief Air Vice Marshal (retd.) Rafiqul Islam.
Also, writer Emdadul Huq Milon, poet Asad Chowdhury and litterateur Ekhlasuddin Ahmmed are consultants for its publications and literature division.
On July 19 when Rafiqul Islam joined as an advisor,  news of his appionmtment was published in the form of a prominent coloured advertisement in the major Bengali dailies Ittefaq and Prothom Alo. It is said that the organisation is using the name of these prominent persons in society to pursue its vested interests. In the meantime, several officers of the foundation have resigned, finding themselves at odds with the organisations' controversial activities.
Earth Foundation's Chief Advisor and former Establishment Secretary Mohammed Mahe Alam resigned on July 12. According to sources, the Executive Director was pressuring him to obtain permission from the Health Directorate to set up 386 health clinics without any sort of required documents whatsoever. Mahe Alam refused and resigned, though his resignation letter states he resigned on personal grounds.
Other than this, Earth Foundation planned to take loans totalling 25 crore taka from the Social Investment Bank, Citi Bank, and PKSF. Arifur Rahman Majumdar of the Credit Division was given responsibility to prepare papers in this regard. This Arifur Rahman had previously been an officer with Eastern Bank. He left the bank to join Earth Foundation, enticed by a hugely attractive salary. Earth Foundation had neither the criteria nor the necessary documents to qualify for a 25 crore taka loan. But the Chairman's instructions were to create false documents if necessary for the purpose. Arifur Rahman did not dare to undertake such an underhand task. His conscience got the better of him and he resigned. 
Another director, Kazi Faruk Al Banna, similarly resigned, unwilling to carry out the unlawful directives of Khaled Hossain. Many officers of the head office are now in a dilemma after learning of these resignations.
Micro-credit scam
The Earth Foundation has targetted 58 districts for its micro-credit scheme. Though the permission of the concerned authorities is required to run any project, in September 2006 the foundation began this project without approval from Bangladesh Bank. Till June 30 this year, Earth Foundation has distributed loans of 49 lac taka in micro-credit in the three districts of Narail, Barguna and Barisal. Director Syed Mohiuddin Ahmed tells PROBE that they have managed to cover 14 districts so far. But PROBE's investigations reveal they actually haven't been able to cover 55 districts with their micro-credit programme.
Earth Foundation's sources state that it applied to Bangladesh Bank for permission for its micro-credit programme on February 25 this year, a day before the given time limit ended. Bangladesh Bank sources say that of giving the name of the organisation's Chairman as Mohammed Khaled Hossain on the application form, instead it was written Khan Mohammed K Hossain. The application form also asked for details if the applicant was ever accused in a criminal case, but the Chairman withheld that information too. The facts are that Mohammed Khaled Hossain was arrested and sent to jail several times within the period from 1986 till 2006. However, he didn't mention any of this on the application form.
Earth Foundation placed ads in various newspapers, inviting applications to 35 thousand vacant posts. The positions offered salaries ranging from 15,000 taka to one lac taka. So far 4000 employees have been appointed, without arrangements for salaries, offices, furniture and other facilities. In Pabna and Bogra, as well as in other districts, the officers and staff are not receiving their salaries. Office rent is pending. The head office staff are also not being paid regularly.
A certain officer who has resigned from Earth Foundation, on condition of anonymity has said that a total of 18 crore taka is required for the monthly salaries of 35 thousand staff members. No one knows the source of this money. He says, "Earth Foundation is simply cheating the people. They are making millions through various scams. All of this is an open secret. The government doesn't seem to be bothered."
Tender for 386 clinics
Without any permission from the Health Ministry or the Health Directorate, Earth Foundation has invited tenders for the constriction of buildings to set up 386 health clinics. The tender notice in the newspapers stated that the organisation's health welfare programme will be expanded to 64 districts within the year 2007. Advertisements for jobs in this regard are being published regularly in the newspaper.
Earth Foundation published an advertisement on July 17 in Prothom Alo, inviting tenders for the construction of 386 clinics. Schedules were sold till July 31. Project costs were estimated at 400 crore taka. The construction work was to carry on for four years. According to Earth Foundation sources, each schedule was sold for 5000 taka. And each schedule had to be submitted along with a bank draft or pay order of 2% earnest money in favour of Earth Foundation. Where will Earth Foundation get the land for such a huge project? Where will the funds come from? And how will the construction company be paid? Director (Admin.) Chaman Afroze has no reply to these questions. However, Director Syed Mohiuddin Ahmed says that 400 persons in various districts have agreed to donate land for this purpose to Earth Foundation. They will take bank loans against this land.
Former Establishment Secretary Mohammed Mahe Alam had been in charge of this project. Sensing the unethical activities of Earth Foundation's Chairman Khaled Hossain, Mahe Alam resigned. There is no certainty whether the project will eventually be implemented. Nevertheless, Earth Foundation has roped in crores of taka in earnest money through the tenders.
Earth Filter publicity and tender
On September 10, Samakal, The Daily Star and several other dailies carried full page advertisements for Earth Filter stating that Earth Foundation goes yet another step ahead. They claim that Earth Filter successfully frees water of arsenic contamination. Despite all sorts of details, nowhere has any name or picture of Khaled Hossain been used.
Next, on September 19, Prothom Alo and The Daily Star, carried tender notices for the purchase of five lac Earth Filters. It was stated that each schedule document would be sold for 2000 taka and this was non-refundable. Earnest money was 2%. According to Earth Foundation calculations, in earnest money alone it would be earning two crore taka. Yet the quality and standard of these filters could nor be ascertained, not was it ascertained if there was any certificate from the relevant government institution. Earth Foundation remained hazy about this in its advertisement.
 
Credit card scam
Earth Foundation had advertised in the newspapers for the distribution of credit cards so that the poor people of villages can purchase fertiliser, pesticides, life-saving drugs and other essentials on credit. They even signed an MOU with Eastern Bank in this regard. But Earth Foundation has portrayed this MOU as a signed and sealed agreement. Eastern Bank says it has not signed any such agreement with Earth Foundation. The bank has several conditions to be met before issuing a credit card. Necessary documents have to be submitted to the bank. If the conditions are met, only then will the bank take the matter into consideration. It was learnt that Earth Foundation had tried to initiate this process through one of their officers who had left Eastern Bank to join them. But they had differences and the officer left Earth Foundation. The project was shelved. But many innocent village persons seeing the advertisement in the newspaper have rushed to the various offices of the foundation.
In the name of flood relief
Day after day the major newspapers of the country have been publishing full page advertisements of Earth Foundation, calling for donations for their flood relief programme. They also set up a loudspeaker in front of their head office and called for donations in cash and kind for flood relief. But they have not been able to say how much money they have collected so far in this regard or how much they have spent on publicity for the purpose.
Money-making ploys
PROBE's investigations reveal that Earth Foundation is running various schemes to cheat people of their money. 
Appointments: Earth Foundation appointed 300 accountants to its various branch offices, taking a 5000 taka deposit from each of them. This added up to 15 lac taka. 
ESSP: In the name of its nationwide Social Security Programme (ESSP), it runs a DPS programme, having collected 16 lac taka from the poor people so far. It is still collecting money in this manner.
Training: It has collected about 10 lac taka for training purposes from the persons it has appointed. It provides training twice a week, sometimes thrice a week and sometimes even five days a week, to various staff members in exchange of 600 taka, 800 taka or even 1000 taka as fees. The training programme is on and the foundation's officers are the ones providing the training.
Shareholders: Earth Foundation projects lucrative dividends to potential shareholders and is selling 200 taka shares all over the country. Director Mohiuddin Ahmed tells PROBE, so far they have 10 lac shareholders. They then must have earned 20 crore taka in this sector alone. However, Mohiuddin Ahmed refused to reveal the actual amount they have made in this regard.
Mobile phones: Meanwhile, Earth Foundation has advertised that it will purchase 100 thousand mobile phones to distribute among the rural population and has invited tenders in this regard from established companies. This advertisement appeared in The Observer on May 20. As no company participated in the tender, the project has been shelved for the moment, says Director Chaman Afroze. If they reach successful negotiations with any company, they will revive the project, she says.
Consumer items: Chaman Afroze tells PROBE that Earth Foundation will so be releasing consumer items into the market. These include solar powered items, seed distribution schemes and more. They are also in the process of signing a 300 crore deal with the Bangladesh Machine and Tools Factory. "Under this deal," says Chaman Afroze, "they will provide us with power tillers and tractors. We will distribute these among farmers under a scheme of payment from their earnings."
On September 20, Earth Foundation and Advanced Chemical Industries (ACI) signed a 658 crore 11 lac 25 thousand taka agreement. This was for the supply of tractors, power tillers and seeds under a consumer credit scheme. This was also advertised in various newspapers on September 23. Conscious quarters ask, is Earth Foundation  commodities marketing firm? Before it takes up any programme, it goes out of its way to advertise this in a big way in the papers. Why? It all seems more than a mite mysterious. Interestingly, when the deal was signed with ACI, the advertisements had pictures of the various advisors and consultants, but nowhere was the name of Khaled Hossain mentioned. Nowhere did his photograph appear. People wonder why.
In the name of the army
It has been learnt that Earth Foundation Chairman Khaled Hossain has been using the army's name to carry out all these above mentioned schemes. He goes around saying that the Army Chief General Moeen U Ahmed is very close to him.
Earth Foundation claims that Army Chief General Moeen U Ahmed was the Chief Guest at a joint function of Earth Foundation and the Machine and Tools held on June 5 at Radisson Hotel and was also the Chief Guest at the Earth Filter launching programme. However,  it was later found out that no such programme took place at Radisson on June 5. Even on August 17 no such programme took place. So the question of the Army Chief being the Chief Guest does not even arise.
Too busy to talk
Earth Foundation Chairman and Executive Director Mohammed Khaled Hossain has been unavailable for comment regarding these controversial activities and the allegations against his organisation. Whenever attempts are made to contact him over the phone, his secretary says that he is busy in a meeting. The secretary took this correspondent's phone number and said, "Sir will contact you," but no contact was made. His mobile phone rings, but he does not reply. He never comes directly in front of the media. He pulls the strings from behind the scenes.
After January 11 this year, the country's overall situation has changed. The joint forces have cracked down on crime, corruption, extortion and the like. But the fraudulent Khaled Hossain and his Earth Foundation still remains out of reach. 
 
Khaled Hossain: The classic con man
Khan Mohammed K Hossain is the Chairman and Executive Director of Earth Foundation. Other than the directors, none of the 4000 staff members of the head office and at the field level  know the name of the Chairman. As for those who do know his name, they have been strictly instructed not to reveal it to anyone. Even his articles published in the newspaper identify him simply as 'Chairman' or 'Executive Director'. On September 23 an advertisement appeared in Ittefaq, Samakal, Amader Desh and other dailies, depicting the Earth Foundation's joint agreement being signed. The caption read "The Hon'ble Chairman was present at the programme." His name was not mentioned. Others were pictured in the advertisement, but not the Chairman. He has craftily remained invisible.
PROBE's investigations reveal that that Earth Foundation Chairman Khan Mohammed K Hossain's actual name is Mohammed Khaled Hossain. He is a cheat, a con man. He comes from Nayanpur of Gazipur.
In 1991 Khaled Hossain brought out a newspaper named Dainik Bhor. His office was at Dhanmondi. The paper closed down after four months and he did not pay any of his reporters or staff. In April when his staff began agitating for their dues, he hired hoodlums to attack his own office. That night he called upon Sheikh Hasina and said that fundamentalists had attacked his pro-Liberation War newspaper office.
He then began his cheating business in the name of the Liberation War. He organised a Muktijudda Mela, or gathering of freedom fighters. He collected massive amounts of rice and lentils from various traders for this fair. But what he ultimately did was simply re-sell this rice and lentils to other traders and make off with the money.
Three years after this he founded an organisation named Jhoom International. But soon a case was filed against him for cheating and he ran off. He was later arrested from 15/B Khilkhet where he was hiding along with his wife.
Next, during the Awami League rule, he brought out an underground newspaper, Dainik Shyambazar. He used the paper for extortion and blackmail purposes and made quite a sum of money, though many of the journalists who worked for the paper still have not been paid their dues. He gave cheques on March 15, 1999 to about 22 journalists as their due salaries. But when they went to cash these from the Kawran Bazar branch of National Bank (CD Account No. 33015439), they were not paid. Khaled Hossain had instructed the bank in advance not to make the payments. As a result, the journalists haven't been paid till date. The bank authorities on April 21 informed one of the journalists in writing about the matter.
In 2001 Khaled Hossain started up the Dainik Shyambazar newspaper in Mohakhali DOHS, renting the house of a retired Navy Chief. He chose the restricted DOHS area so that no one could easily access his office and raise a hue and cry about his controversial activities.
He has knack of using prominent persons of society for his wheeling and dealing. It was learnt that Khaled Hossain made 14 lac taka in the name of sending two relations of a certain lady to Europe. He used the money to set up his office in DOHS. The lady filed a case against him at the Gulshan police station and he even went to jail in this connection.
The fact that he has been to jail is all very clear in a book he authored, Bangladesh Karagar: Durniti o Protikar (Bangladesh Jail: Corruption and Cure). The book was published in August 2006 and in it Khaled Hossain says he had been imprisoned for 27 months at the Dhaka and Noakhali jails. He, however, avoided mentioning why he had been in prison. The book cover bears an Earth Bangladesh logo which has stark similarity with the Earth Foundation logo. The only difference is in the words 'Bangladesh' and 'Foundation'.
Investigations reveal that the Dainik Shyambazar has its office on the 14th floor of Mouchak Tower at 83/3 Siddeshwari (Malibagh), but Khaled Hossain does not attend office there. The Acting Editor of the paper is Ismail Miah Dulal. On July 10 the Information Ministry struck the paper off the media list as it was not brought out regularly and did not follow the regulations. The visit to the office found it under lock and key.
Khaled Hossain now attends office regularly as the Chairman and Executive Director of Earth Foundation on the 14th floor of the Suvastu-Chandrashila Tower on Panthapath. Despite the caretaker government's anti-corruption drive, he continues with his nefarious schemes unhindered. It has been learnt that there are four cases against Khaled Hossain under investigation of the Detective Branch of Police. 
It is alleged that he had been involved with Khushi Kabir's NGO Nijera Kori from where he misappropriated funds. He also goes around telling people that he is a close associate of Army Chief General Moeen U Ahmed. He also claims to be a former official of the World Bank. 
 
 
 
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