Bracnet is facing setback amid wide scale financial anomalies of senior officials including chief executive officer Syed PF Ahmed and head of operations Md. Mukarram Husain who allegedly violated partnership deal with Japanese investors.

Bangladesh Telecommunication Regulatory Commission (BTRC) recently fined Tk 5million for involvement in illegal VoIP business, source confirmed to the Mirror Asia. 

Bracnet, which started its journey in 1996 as the IT and ISP arm of BRAC, formed a joint venture company with US investment company gNet DEFTA in 2005. Attracted by its pioneering social business model and the potential to replicate it globally, Japan's second largest cellular operator and wireless ISP KDDI entered into a partnership with Bracnet, in which it has 50 percent stake.

However, for various reasons, the company has been gradually moving towards loss-making for the past 5-6 years. BRAC executive director Asif Saleh abused his power to appoint his cousin Syed PF Ahmed as CEO at Bracnet.

“Despite receiving a salary of Tk1.4 million per month, the company's CEO Syed PF Ahmed mostly stays abroad. As a result, head of operations perform all responsibilities,” said an official of Bracnet requesting anonymity.

Bracnet head of operations Md Mukarram Husain has been trying to exercise his arbitrariness since taking charge providing ‘incorrect’ reports to the board.

Hossain is also accused of embezzling company assets and using company assets in an illegal manner. As an assistant to his misdeeds, in March 2024, Mukarram appointed his own cousin and friend Md Iftekharul Islam Shimul as advisor with salary of Tk3 lakh.

To make the party heavier, he illegally appointed his friend Adamjee Cantt School Biology teacher KM Shakib as an advisor with a salary of Tk2 lakh. In January 2024, Jahangir Alam was appointed as a fake advisor with a high salary.

Bracnet zonal business head Anwar Hossain, regulatory head Sikander Kabir, transmission head Saiful Arefin and Faisal Ahmed, head of financial planning & analysis, are agedly been  involved in the anomalies of Mukarram

Mukarram also ordered the sale of the latest model Toyota Prius 2018 (Dhaka Metro G-49-1117) car, which was purchased for Tk3.6 million for the use of company officials without proper permission from the board. Even though the price increased to Tk3 million on auction, Mukarram bought the car in his mother's name for only Tk0.8 million.

Mukarram and Shimul's nominated pet client MH IT handles High Volume (total 37, 92,841 minutes) outgoing calls under the name of IPTSP connection, sources confirmed.

Although a credit limit of Tk50 thousand was shown during the connection, Mukarram later allowed limit of up to Tk1.3 million without permission. For such BTRC caped the service of the company by 25 percent for three months and Bracnet had to pay a hefty fine.

Regarding the allegations, TMA tried to reach Md. Mukarram Husain for comment. However, his phone found switched off.