CG repeal a barrier to free polls: Says Dr Kamal

Noted jurist Dr Kamal Hossain yesterday said the repeal of caretaker government system will be a major barrier to free and fair parliamentary elections.

Terming the government's decision suicidal, he urged the Election Commission (EC) to take bold stance for the restoration of the caretaker government system through further amendment to the constitution.

"You [EC] should clarify the commission's position regarding whether it will be able to hold a free and fair election without a caretaker government. If not, you should voice for bringing the system back," he said.

Dr Kamal Hossain was speaking at a dialogue with the EC at its secretariat in the capital as part of the EC's on going discussion with political parties. He led an eight-member delegation at the two-hour dialogue with EC that started around 3:00pm.

He also spoke for giving the EC the full authority of the country's administration during the much-talked-about 90 days before the election.

On strengthening the commission, the principal author of the country's charter said the EC's major responsibility is to hold a free and fair election, "So, you [EC] should place recommendations to strengthen the commission."

He said impartial figures should be appointed to the commission. If the government appoints partisan people to the EC, the country will fall into a deep crisis.

He gave his nod to the introduction of electronic voting machine in the urban areas in the first phase and spoke for spreading the system in rural areas gradually.

The EC on June 7 launched dialogues with the political parties for their opinion on some key issues like Representation of the People Order, laws on demarcation of constituencies, appointment of election commissioners and use of electronic voting machine.

Main opposition BNP and its alliance partner Jamaat-e-Islami did not join the dialogue.

Source: The Daily Star

$1b Indian Credit: Railway signs first contract

Bangladesh Railway yesterday inked a $16.45 million deal with Indian company Texmaco Ltd, the first-ever contract under India's $1 billion credit to Bangladesh.

According to the deal, 165 broad-gauge oil tank wagons and six brake vans will be purchased in a year.

Twenty development projects including 12 of Bangladesh Railway will be implemented under the line of credit.

The wagons and vans will be used to supply oil to power plants, Communications Minister Syed Abul Hossain told reporters after the signing of the contract.

Abu Taher, director general of Bangladesh Railway, and AK Sinha, senior vice president of Texmaco Ltd, signed the agreement at the Railway Bhaban in the capital.

Railway Division Secretary Ibadat Ali, Bridges Division Secretary Mozammel Haque Khan and Railway Adviser to the Indian High Commission Chandrima Roy were present at the signing of the deal.

"This is the first contract and the rest will be signed gradually," said the communications minister.

The two countries signed a joint communiqué in New Delhi in January last year for enhancing cooperation in many areas that include providing transit to India.

India agreed to give Bangladesh $1 billion credit under the joint communiqué.

The agreement was signed in Dhaka on August 7 last year with terms and conditions for the credit and an outline of projects to be implemented with the loan.

Source: The Daily Star 

BCL, JCD clash at IU: 25 buses vandalised

Activists of Jatiyatabadi Chhatra Dal (JCD) yesterday vandalised at least 25 buses of Islamic University in Kushtia following a clash with the activists of Bangladesh Chhatra League (BCL).

Some 15 students and bus drivers were injured from broken glass pieces during the rampage. They were given first aid.

According to campus sources, a number of BCL activists with lethal weapons swooped on JCD activists when they got to the campus around 10:30am.

Chased away by BCL men, JCD activists then started vandalising university buses coming to the campus on Kushtia-Jhenidah highway.

Law enforcers from Kushtia, Jhenidah and University Police Station rushed to the spot and brought the situation under control. No one has been arrested.

University Proctor Mahbubul Arefin and other teachers and officials also rushed to the spot. All administrative and academic activities of the university remained suspended for the day.

The proctor said stern disciplinary actions would be taken against those involved in damaging university assets.

According to sources, the Awami League student wing BCL has not been allowing JCD on the campus since the AL-led government came to power. BNP's student organisation JCD did the same to BCL when BNP and its allies were in power during 2001-06.

Source: The Daily Star

AL lawmaker, wife sued for corruption

The Anti-Corruption Commission (ACC) yesterday filed separate cases against ruling Awami League lawmaker Abdul Mannan and his wife Shahad Ara Mannan on charge of possessing wealth worth about Tk 72 lakh which is disproportionate to their known sources of income.

About two and a half years into the government's tenure, this is the first instance the anti-graft watchdog has taken action against a ruling party politician.

The couple submitted their wealth statements almost two years ago after ACC in separate notices asked for it during the immediate-past caretaker rule in 2009.

The commission took a long time to file the cases following submission of their wealth statements. Usually, it takes no more than a month to complete an enquiry into a corruption allegation and a case is filed immediately on completion of the enquiry.

"We had to conduct enquiry twice into the wealth statements as some difficulties turned up," said ACC Chairman Ghulam Rahman.

"I have submitted detailed wealth statements in two phases to the commission as they did not specify any deadline for it. Now it seems the commission did not count my second statement," said Abdul Mannan.

"This is conspiracy and I will fight against it in the court," added Mannan, who won from Bogra-1 constituency in the last general election.

According to the case statement, the anti-graft watchdog issued notice upon Mannan in August 2009 asking him to submit their wealth statement.

In reply, Mannan submitted an account of his movable and immovable property worth Tk 1.82 crore in October 2009.

During enquiry the ACC found the AL lawmaker had concealed information about wealth worth Tk 49.98 lakh. The enquiry also found Mannan had amassed wealth worth Tk 1.98 lakh beyond known sources of income, says the case statement.

In the other case, his wife Shahad has been charged with concealing information regarding Tk 13.62 lakh and means of earning wealth worth Tk 6.7 lakh.

The case statement also alleges that the couple amassed the ill-gotten wealth in between April 1997 and October 2009.

ACC Assistant Director Mohammad Ibrahim filed both the cases with Ramna police station.

According to the ACC law, the commission would carry out a full-fledged investigation into the allegations.

Source: The Daily Star

Fuel prices to push up spending on subsidies

The government spending on subsidy is likely to increase this fiscal year by 16 percent over FY 2010-11 due to a rise in global fuel price and import of additional petroleum products for quick rental power plants.

Economists say the subsidy hike can be continued if it helps increase short-term power generation. But for medium and long terms the government also has to find alternatives.

Over the last two and a half years, oil price has nearly tripled in international market.

In December 2008, oil was trading at around $34 a barrel that climbed to more than $70 by August 2009. The end of 2010 saw the price rise to nearly $90.

On Friday it was selling at $94.62 per barrel.

However, a finance ministry official insists the rise in subsidy is mainly due to import of additional fuel for quick rental and peaking power plants.

Energy ministry officials said the government in the current fiscal year will have to import about 70 lakh tonnes of petroleum which was 54 lakh tonnes in the last FY and 26 lakh in 2009-10.

In recent times, energy and power sectors have overtaken agriculture and food in terms of subsidy which is mainly meant for lower-income groups, the most affected by price hike of essentials.

The government has made an allocation of Tk 22,470 crore for subsidies for FY 2011-12. In the last fiscal year's original budget, it was Tk 14,263 crore which went up to Tk 19,399 crore in the revised budget, according to the finance ministry's budget documents.

In FY 2010-11, according to the government estimate, subsidy in the revised budget increased by 36 percent over the original one.

The allocation was Tk 9,334 crore in the revised budget for FY 2009-10, according to Medium Term Budget Framework (MTBF) prepared by the finance ministry and placed in the House on June 9.

The MTBF shows subsidies in energy and power sectors increased by about 280 percent in the revised budget of the FY 2010-11 compared to those of previous fiscal year.

In the total subsidy outlay, the share of these two sectors was 51 percent in the revised budget for the last fiscal year and 22.5 percent in 2009-10. It is 62 percent in the current fiscal year.

The MTBF says 1,556 megawatt of electricity was purchased in the last FY from the private rental and peaking power plants at higher prices and it will increase further in the current FY.

Talking to The Daily Star, World Bank's senior economist Zahid Hussain said if power generation increases and GDP growth goes up through the spending on subsidy, it can be continued for a longer term.

But if power generation dose not increase despite the subsidy, the macroeconomic balance has to be made sustainable through price adjustment.

Salehuddin Ahmed, former governor of Bangladesh Bank, said the amount of subsidy is increasing thanks to quick rental power plants.

He said alongside quick rental power plants the government can take initiative for establishing big power plants under public-private partnership.

If the government makes price adjustment repeatedly to cut subsidy, cost of living and doing business will also rise, Salehuddin said.

The government should prepare a long term energy policy to reduce uncertainty, he added.

Centre for Policy Dialogue (CPD) in its report, State of the Bangladesh Economy in FY 2010-11, released last month said the amount of subsidy has gone up to a huge sum and if necessary, price and tariff adjustments might be considered for maintaining fiscal balance.

CPD Executive Director Mustafizur Rahman told The Daily Star, "We are not against subsidy but there should be a study on which sector should get how much."

The budget does not have clear breakdown of sector-wise subsidy, he added.

SUBSIDY CONFUSION
In the government budget document, there is no specific information regarding how much subsidy is being given to which sector.

The Budget in Brief placed in parliament mentions agriculture and food subsidies specifically. But no details on subsidy in other sectors were found in it.

MTBF documents have provided separate outlays of subsidy on food, agriculture, fuel, power and export and others, but not in conformity with the Budget in Brief.

A finance ministry official said in the budget document the subsidy in energy and power sector is shown under loan and advance heads allocation which is Tk 13,994 crore in the current FY.

Source: The Daily Star