The government will sell the ownership of 16 companies in the Beximco Group’s garment sector. Apart from this, several companies related to this group will be closed. Only profitable companies, including Beximco Pharmaceuticals, will remain operational. This decision was made at a meeting of an 11-member advisory committee formed at the initiative of the current interim government.
According to government data, the number of Beximco Group companies, big and small, known and unknown, is 169. Of these, 32 are in the garment sector, which are in production. It has been decided to sell the ownership of 16 of these 32 companies. Apart from this, the officials and employees of the Beximco Group’s loss-making enterprises will be closed after paying their salaries and allowances for three months.
These decisions were made regarding various companies of the Beximco Group at a meeting of the 11-member advisory committee on November 28. Earlier, on November 24, an ‘Advisory Committee on Reviewing the Labor and Business Situation of Industrial Enterprises in the Beximco Industrial Park’ was formed. This 11-member advisory committee was formed with Labor and Employment Advisor Brigadier General (Retd.) M Sakhawat Hossain as the convener. The first meeting of this committee was held on November 28. It is known from relevant sources and documents that these decisions were taken there.
According to the minutes of the committee meeting, the meeting discussed dividing the 169 companies of the Beximco Group into three categories: A, B and C. Among them, Beximco Pharmaceuticals will be in the ‘A’ category, i.e. good companies. 32 companies will be in the ‘B’ category. And all the remaining companies will be in the C category. This classification of Beximco companies was proposed by Bangladesh Investment Development Authority (BIDA) Executive Chairman Ashiq Chowdhury. Based on his proposal, four decisions were taken in the first meeting of the advisory committee on Beximco Group.
Ashiq Chowdhury was asked about the list of 169 companies last Thursday, the consequences if no one buys them, finding alternatives to not closing them, the situation after paying the workers’ salaries for three months, etc. He refused to comment on these issues.
Among the decisions taken regarding Beximco companies, first, Janata Bank will provide the necessary funds for the salaries and allowances of the workers of the Beximco Industrial Park companies for the next three months. Secondly, the lender Janata Bank will finalize the Expression of Interest (EOI) for the sale of the rights of the ‘B’ class companies and inform the Ministry of Labor and Employment by December 9. Thirdly, an experienced lawyer will be appointed to prepare a response to the ongoing writ in the High Court and the terms of reference of the administrator will be finalized. The Finance Department will pay the necessary expenses for appointing the lawyer. Fourthly, the authorities will take control of the transfer of shares of Beximco companies within a week, the implementation of which will be in the hands of BSEC and Beximco’s administrator.
When asked about these decisions of the advisory committee, Beximco Group Director (Finance and Corporate Affairs) Osman Kaiser Chowdhury told Prothom Alo, ‘The ministry called us for the meeting held on November 28, but we were not included in the meeting. We have not received any letter of decision. As a result, I cannot comment on this matter.’
When informed about the decision, Osman Kaiser Chowdhury said, ‘I do not know how the listing was done. It is also not clear what the government is going to do. However, there are no 169 institutions or companies under the Beximco Group. In addition, the decision to sell the rights of some B-class companies also does not seem realistic. We would do better if we arrange to open letters of credit (LC) to manage the companies well.’
Meanwhile, Finance Advisor Salehuddin Ahmed, Home Advisor Jahangir Alam Chowdhury, Industry Advisor Adilur Rahman Khan participated in the meeting held on November 28 under the chairmanship of Advisor M. Sakhawat Hossain. Also present were Labor Secretary AHM Shafiquzzaman, Finance Secretary Md. Khayeruzzaman Majumder, BIDA Executive Chairman Ashiq Chowdhury, Attorney General Md. Asaduzzaman, Bangladesh Securities and Exchange Commission (BSEC) Chairman Khandaker Rashed Maksud, Beximco Limited Receiver Md. Ruhul Amin, and Janata Bank Managing Director Mojibur Rahman, who provided loans to Beximco Group.
The minutes of the meeting said that Finance Advisor Salehuddin Ahmed said in the meeting, “It is the responsibility of the concerned authorities to ensure the overall working environment, including wages, of industrial workers. But recently, workers have been creating adverse situations, including blocking roads, by not getting their due and fair wages. As a result, this is having an adverse effect on other sectors, including the garment sector.”
When asked about the implementation of the advisory committee’s decision on the Beximco Group, Labor Secretary AHM Shafiquzzaman said that he would not comment on the decision of the meeting. In response to a question about the initiative to sell the rights of B-class companies, what will happen if no one wants to buy it, the Labor Secretary said, “An initiative has been taken. Let’s try first. Let’s see what can be done. Foreign buyers will be invited to run the factories in the garment sector first. And BSEC will appoint independent directors in some companies and arrange for their management.”
The state-owned Janata Bank has financed the Beximco Group the most. As a result, the bank is in trouble due to non-recovery of loans from the group. In this situation, regarding the decision of the advisory committee meeting, Janata Bank MD Mojibur Rahman told Prothom Alo, “Beximco workers and employees will have to pay 180 crore taka for three months’ salary, allowances and wages. We will inform the government by December 9 as per the decision of the bank’s board. And we will provide necessary information and data to BIDA for B-class companies as well.”
