The controversial former lawmaker from Dhaka-10 constituency, Mosaddek Ali Falu, had a meteoric rise in fortune in the last two and a half years with his wealth in shares in different companies increasing 1(10 times. His annual income tripled and his land doubled.

However, Falu, who had been the political secretary to BNP Chairperson Khaleda Zia before he became a lawmaker through a widely rigged election from Dhaka-10, could by some miracle reduce his annual expenditure despite his lavish lifestyle. What he claims to have spent in a year-Tk 3,20,000 (Tk 26,660 per month)--can hardly support a middle class family let alone Falu's who lives in a swanky house and drives some of the most expensive cars in the world.

’Ibis information is available from the statements he submitted

to the returning officer (RO) on May 24, 2004 (for by-election of Dhaka-10 constituency) and on January 9, 2007. However, the statements did not reveal how he earned the money to amass such wealth as he did not submit his full income tax statement to the Election Commission (EC) as other candidates for thf postponed January 22 election did.

Moreover, his declared income fallsfarshort of his wealth accumulation, which clearly indicates Falu had made his fortunes through non-transparent means beyond anyexplanation.

FALU'S UNEXPLAINED WEALTH Falu had declared a total wealth of Tk 2,28,42,617 in 2004. This included Tk 37,90,348 for 67.85 bigha (20 katha is equivalent to one bigha) of land in Savar, Tk 60,000 for 5 katha land in Joar Sahara, Tk 54,69,460 for a seven-storey building at South Shajahanpur, Tk

34,45,000 for a five-storey and a four-and-a-half storey buildings also at South Shajahanpur, Tk 50,92,809 for nine fiats in a building also at South Shajahanpur.

Falu showedTk 9,90,000worth of share certificate and Sanchaypatra (saving scheme), Tk 8,10,000 worth of a dairy farm, Tk 28,75,000 worth of shares of different companies (number was not mentioned), and Tk 3,10,000 worth of a fishery farm.

At that time, he had declared liabilities of Tk 61,00,000. His liabilities include Tk 50,00,000 for receiving as advance for selling of land at Savar, Tk 3,00,000 as dues to "tenants" and Tk 8,00,000 as advance received for selling flat. He did not detail which land or flat he wanted to sell.

He showed Tk 64,99,123 as his yearly income in 2004 and Tk 3,63,761 as yearly expenses.

But in a span of only two and a half years, Falu increased his declared wealth to 36,05,93,777 by end-2006, an increase of Tk 33,77,51,160. His wealth includes 118.735 bigha land mostly in Savar (worth Tk 1,51,36,201), 5 katha land at Joar Shahara (worth Tk 60,000), 12.74

katha land at Tejkunipara (worth Tk 1,33,20,000), 4.439 bigha land at Dautiang of Dhamrai (worth Tk 549,450), 1.52 bigha land at

Badogawail of Dhamrai (worth Tk 1,88,700), 6.50 katha land at Badda of Gulshan (worth Tk 5,55,000).

Falu's household properties include a seven-storey building at 797, South Shahjahanpur shown to be worth Tk 54,69,460, a five-storey building at 701/702 South Shahjahanpur shown to be worth Tk 34,45,000, seven apartments at 703 South Shahjahanpur shown to be worth Tk 39,61,073, a tin-shed house at Tejkunipara on an undisclosed area of land shown to be worth Tk 2,60,65,575, and another tin-shed house shown to be worth Tk 51,81,145.

His liabilities at that time stood at Tk 3,27,72,890. The liabilities include outstanding personal loans worth Tk 1,10,00,000 from Md Shahidul Islam, Tk 1,00,00,000 from Enayetur Rahman, and Tk 50,00,000 from Lutfor Rahman--all to purchase shares and land, and Tk 67,72,890 from Bangladesh Finance and Investment Co Ltd to purchase a car.

The biggest hole in his statements is that his declared annual income could never explain even a portion of increase in his income. In 2004, he showed an annual income of Tk 64,99,123 and Tk 1,67,33,124 in 2007. Even if we consider his highest income of Tk 1,67,33,124 as annual source for increasing wealth, he could have a maximum earning of Tk 4,18,32,810 since 2004 in two and a half years. But during this period, his total annual expenditure was Tk 9,09,402 (considering his highest spending of Tk 3,63,761 in 2004). This means Falu could have made a maximum wealth of Tk 4,09,23,408 during those two and a half years. But he showed an increase of Tk 33,77,51,160.This clearly shows Falu has an unexplained Tk 29,68,27,752 increase in wealth.

During these two and a half years, Falu had increased his liabilities by Tk 2,66,72,890. As the accounting system goes, this could add up to his wealth. But even then his statements cannot explain his newly found wealth.

WHERE IS HIS CAR?

Falu in his 2007 statement showed in his liabilities a loan of Tk 67,72,890 for purchase of a car from BFIC (it was not made clear what is BFIC). But he did not show his car in his wealth statement that excluded household property. The only explanation for this could be he used the money for other purpose which is tantamount to criminal offence.

FALU AND HIS OUTLANDISHLY EXPENSIVE CARS

That his statement does not show any car does not mean Falu goes around on foot. In fact, he rides some of the most expensive cars in the world. He rides a Hummer-Hollywood film star Arnold Schwarzenegger owns one--the production of which has been discontinued in the US on the ground that it is a gas-guzzler and environmentally unfriendly, and a BMW, among other vehicles.

But his expenditure statement shows he spends only Tk 24,000 a year on fuel and maintenance. This actually means Falu spends less than Tk 70 on daily fuel and maintenance of his cars. Even if the maintenance cost is overlooked, Tk 70 can buy only about 1.2 litres of octane. A Hummer can run roughly 5.5km and a BMW 14km on this much of fuel. ENERGY STARVED FALU

Falu's statements also contain the amazing fact that he spends only Tk 6,000 a year on electricity. This means his monthly electricity bill comes to only Tk 500. If the fixed line rent of Tk 150 and Vat are excluded, he consumes only about 140KW (Tk 2.50 per KW) of electricity a month. This means he cannot run any AC or washing machine or use any electrical items such as iron or hair dryer. Any middle class family living a in a 1,000 square feet house consumes more than Tk 500 in electricity.

While visiting Falu's Banani residence, this correspondent noticed that many of the flats in the building have air conditioners.

FALU'S MYSTERY APARTMENT Falu filed his candidature using a Banani apartment address (House-68, Road-5, Old DOHS, Banani). The IFIC Bank--of which he is now the chairman--shows the same address as his residence. However, this address is conspicuously missing from the list of household property Falu submitted to the EC. Earlier, in a rejoinder to a vernacular daily he claimed that he does not have any apartment of his own or allocated by any organisation at Banani. In his income tax return, Falu used his Shahjahanpur address.

INCOME TAX MISSING

Falu did not show how much tax he pays. In the statement of standard of his lifestyle, he has not shown any bill for telephone at his residence.

He also did not submit his statement papers for income tax returns to the returning officer despite being the richest among all of BNP candidates running for constituencies under Dhaka district.

LAND PRICES SHOWN BELOW MARKET PRICE

The Dhaka-10 constituency candidate's papers also show his property and land prices to be well below the market price.

In his statement it is showed that Falu owned 118.735 bigha land at Gohailbari and Kaltasuti in Savar worth Tk 1,51,36,201. It shows that the cost of per katha land is only Tk 6,374, which is far below the market price, local sources said. Present price of this land and its adjacent areas is about Tk 1,50,000 per katha, local people said.

MAY 2004- JANUARY 2007: SOME COMPARISONS

While his wealth statement submitted to the EC on May 24, 2004 showed his wealth to be worth Tk 2,19,51,617, recent statement shows his wealth to be worth Tk 36,05,93,777.

His annual income was shown Tk 64,99,123 in the 2004 statement while recent statement shows it to be Tk 1,67,33,124.

Interestingly, while Falu's expenditure was Tk 3,63,761 in 2004, his family expenditure now stands, as claimed in the recent statement, at Tk 3,20,000.

For all these he did not submit any income tax return papers.

His land properties, except households, are shown to be worth Tk 2,99,09,351.

The five household properties listed in Falu's statement do not include the amount of land for the holding of the houses. In one case, a tin-shed house in the city's Tejkunipara is shown to be worth over Tk 2,00,00,000.

In the submitted papers of Falu's wealth, he is shown to have shares worth Tk 28,45,70,173.

Falu owns 900 shares in Brotherhood Enterprise Ltd, worth Tk 9,00,000 at Tk 1,000 each, 18,000 shares in Brotherhood Securities Ltd worth Tk 18,00,000 at Tk 100 each, 15,925 shares in Bill Trade Engineering Ltd worth Tk 1,59,25,000 at Tk 1,000 each, 5,20,000 shares in Amar Desh worth Tk 5,20,00,000 at Tk 100 each, 1,70,000 shares in International TV Channel worth Tk 1,70,00,000 at Tk 100 each, 6,00,000 shares in National TV Ltd worth Tk 6,00,00,000 at Tk 100 each, 3,14,810 shares in Dhaka Shanghai Ceramics worth Tk 3,14,81,000 at Tk 100 each, 59,500 shares in Dayapar Ltd worth Tk 59,50,000 at Tk 100 each, 350 shares in Bill Trade Structures worth Tk 3,50,000 at Tk 1,000 each, 4,50,000 shares in MB Agro Project worth Tk 4,50,00,000 at Tk 100 each, 12,200 shares in Padma Oil Company worth Tk 42,09,000 at Tk 345 each, 67,700 shares in Eastern Lubricants Blenders Ltd worth Tk 1,32,01,500 at Tk 195 each, 2,00,000 shares in S Alam Cold Roll Steels worth Tk 2,00,00,000 at Tk 100 each, 25,000 shares in IFIC Bank worth Tk 1,23,23,500 at Tk 492.94 each, 11,374 shares (2,274 of them as bonus) in Prime Bank Ltd worth Tk 44,30,173.