As the saga unfolds, the Transcom Group faces a pivotal moment that will not only shape its corporate legacy but also determine the fate of its leadership and business operations.
Family feuds, a timeless aspect of human relationships, transcend historical epochs and cultural boundaries. These conflicts, whether rooted in ancient myths or splashed across modern headlines, often arise from deep-seated emotions and unresolved grievances. Whether fueled by disputes over inheritance, personal betrayals, or conflicting beliefs, family feuds illuminate the intricate and fragile nature of our closest bonds.
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The ongoing dispute within the Transcom Group, triggered by the division of the substantial business empire left by the late Latifur Rahman, has evolved into a critical situation. The simmering Transcom Group family dispute, seemingly ignited by the division of the vast business empire – worth around Tk10,000 crore – left behind by the late Latifur Rahman, founder of the Group, has escalated into a dire situation.
Allegations and Accusations
Shahzreh Huq, the younger daughter of Latifur Rahman, has made serious allegations against her elder sister and Transcom CEO, Simeen Rahman. Shahzreh accuses Simeen of involvement in the untimely death of their elder brother, Arshad Waliur Rahman. Shahzreh claims that Arshad, who was divorced and childless, was allegedly murdered, possibly to prevent him from claiming a portion of the family wealth.
These accusations have significantly tarnished the reputation of Transcom Group, a conglomerate known for its commitment to ethical business practices. The internal turmoil starkly contrasts with the esteemed image cultivated by the group’s founder within the business community and tax authorities.
A murder case has been filed at the Gulshan Police Station, implicating ten individuals, including Simeen Rahman’s son and key officials of Transcom Limited, in connection with the alleged murder. The accused are—
- Simeen Rahman’s son and Transcom Limited’s Head of Transformation Zaraif Ayat Hossain
- Executive Director of Corporate Affairs (Law) Fakhruzzaman Bhuiyan (60)
- Director of Corporate Finance Kamrul Hasan (61)
- Manager of Corporate Affairs Selina Sultana (45)
- Manager of Corporate Affairs KH Md Shahadat Hossain (50)
- Manager (Medical Affairs) of Eskayef Pharmaceuticals Murad Hossain (50)
- Marketing and Sales Department Executive Director Dr Md Mujahidul Islam (55)
- Md Zahid Hossain (55)
- Arshad’s chef Rafiq (55)
- Driver Mirazul (40)
Munshi Moniruzzaman, a lawyer representing Transcom Group, has stated that the new case was filed to prevent the top three officials of the group from facing any issues upon their return home. He has denounced the case as fabricated and based on false information, intended for harassment purposes.
“The incident in the new case dates back nine months. This case has been filed falsely and fabricated with fabricated information for the purpose of harassment,” he added.
Corporate Legacy and Succession Struggles
In 1972, after his jute mill was nationalized, Latifur Rahman founded today’s Transcom Group, which has since become a partner with various foreign brands entering the Bangladeshi market. The group built two top-tier newspapers in the country alongside having stakes in insurance and a non-bank financial institution. According to US-based global research organization ZIPPIA, Transcom’s annual revenue was $685.1 million in 2023 while it employed over 25,600 people.
This battle is among corporate succession conflicts that have unfolded in recent months after the death of founders, who spent most of their lives turning a small business into a conglomerate. After Transcom Group, the most recent is Nasir Group, now embroiled in a full-fledged conflict among the heirs over the distribution of wealth following the passing of its founder, Nasir Uddin Biswas.
Previous Cases and Legal Battles
Three separate police cases filed on 21 February alleged that Transcom Chairman Shahnaz Rahman, Simeen Rahman, and several other Transcom officials, including Fakhruzzaman Bhuiyan and Kamrul Hasan, breached trust, committed fraud, and forged documents to deprive Shahzreh Huq and her deceased brother of their rightful share of the family’s wealth.
Five Transcom officials were apprehended on 22 February while Shahnaz Rahman, Simeen Rahman, and Zaraif Ayat Hossain were out of the country. They were granted bail the following day by a Dhaka Court under the condition of surrendering their passports. However, the bail was revoked later as they failed to appear and submit their passports.
Alauddin, the investigation officer for the Transcom Group cases and an Inspector of the Police Bureau of Investigation (PBI) informed on Saturday (30.03.2023) that the accused individuals are evading arrest, with their whereabouts unknown.
On 23 February, the PBI requested a travel ban on Shahnaz Rahman, Simeen Rahman, and Zaraif Ayat Hossain. Subsequently, the Supreme Court’s Chamber Court ordered the trio to return home without hindrance and surrender to the court within three days.
Transcom Group
The Rahman family’s roots trace back to Comilla, with their entry into the business world dating back to 1885 when Latifur Rahman’s grandfather established a tea estate in The Duars. Returning to Bangladesh in the 1960s, the family ventured into building the first Bangladeshi-owned jute mill in Chandpur, while also acquiring tea estates in Sylhet during the 1940s in exchange for their holdings in West Bengal.
In 1972, following the nationalization of his jute mill, Latifur Rahman laid the foundation for what is now known as the Transcom Group. Over the years, the group has evolved into a strategic partner for numerous foreign brands seeking to enter the Bangladeshi market, collaborating with industry giants like Philips, Pepsi, Nestle, Pizza Hut, and KFC.
Expanding its influence through acquisitions of businesses from divesting foreign companies such as Philips and SK&F, Transcom Group bolstered its position in the market. The conglomerate diversified its portfolio by venturing into media with two prominent newspapers, alongside investments in insurance and a non-bank financial institution.
Despite its growth, the group faced challenges from local competitors experiencing faster growth in various sectors. Observers close to the group noted a perceived lag in capitalizing on Bangladesh’s economic upsurge over the past 15 years, highlighting the need for strategic adaptation to evolving market dynamics.
For instance, while SK&F expanded its pharmaceutical sales network and production capacity, industry insiders reported a decline in its ranking within the pharmaceutical industry, slipping from the third position a decade ago to the eighth spot.In conclusion, the Transcom Group family feud underscores the fragility of familial relationships and the far-reaching consequences of unresolved conflicts. As the legal proceedings unfold, the intricate web of accusations and defenses continues to unravel, shedding light on the complexities of human nature and the dynamics of family dynamics in the realm of business and personal relationships.
