Bangladesh blames sabotage for factory fire; country mourns dead


DHAKA (Reuters) - Bangladesh said on Tuesday a fire that killed 111 textile workers was sabotage as protesters took to the streets for a second day and garment factories across the world's second biggest clothes exporter stopped work to mourn the dead.
The country's worst-ever industrial blaze broke out on Saturday and consumed a multi-storey building of a Tazreen Fashions factory. More than 150 workers were injured.
The fire has put a spotlight on global retailers that source clothes from Bangladesh, where the cost of labor is low - as little as $37 a month for some workers - and rights groups have called on big-brand firms to sign up to a fire safety program.
The interior minister, Mohiuddin Khan Alamgir, said according to a preliminary inquiry, the fire was the result of arson. He promised to bring the culprits to justice.
"We have come to the conclusion that it was an act of sabotage. We are finding out as of now who exactly the saboteurs are and all culprits will be brought to book," Alamgir said.


Wal-Mart distances itself from fire in Bangladesh


DHAKA, Bangladesh (AP) — The garment factory in Bangladesh where a weekend fire killed at least 112 people had been making clothes for Wal-Mart without the giant U.S. retailer's knowledge, Wal-Mart said.
Wal-Mart said the Tazreen Fashions Ltd. factory was no longer authorized to produce merchandise for Wal-Mart but that a supplier subcontracted work to it "in direct violation of our policies."
"Today, we have terminated the relationship with that supplier," America's biggest retailer said in a statement Monday. "The fact that this occurred is extremely troubling to us, and we will continue to work across the apparel industry to improve fire safety education and training in Bangladesh."
The blaze on Saturday was one of the deadliest fires at a garment factory in Bangladesh and highlighted how the country's garment factories often ignore safety in the rush to supply major retailers in the U.S. and Europe. More than 300 people have died over the past six years in garment factory fires in the South Asian country. 


Subhash Dutta passes away


Subhash Dutta, an icon of evocative Bangla movies, died at his residence in the capital Friday morning due to old age complexities.
The great filmmaker breathed his last around 7:10am at his Ramkrishna Mission Road house.
His body will be kept at the Central Shaheed Minar on Saturday morning to enable his well-wishers and fans from all walks of life to pay homage to the artist.
From the shaheed minar, Dutta’s body will be taken to the Bangladesh Film Development Corporation around noon and later to the Postogola cremation ground for last rituals in the evening.



3 admit to Parag abduction link


Three of the seven suspects arrested in connection with the abduction of six--year-old Parag Mondol admitted their involvement on Friday.
Of the rest four, three were placed on a 10-day remand on Friday while the seventh was remanded for seven days the day before.
Zahidul Hasan, 18, an HSC student of Dania College in Shonir Akhra, Mohammad Ali Rifat, 19, an aeronautical engineering student at a private institute in Uttara; Kala Chand, 30, now a CNG-run auto-rickshaw driver; gave their confessional statements before Judicial Magistrate Shahidul Islam of Dhaka.
The trio said they took part in the operation but they did not know the planning as well as persons behind the abduction, Shakhawat Hossain, officer-in-charge of South Keraniganj Police Station, told The Daily Star. 




Bangladesh News: Pvt cos rule power sector with govt approval


Bangladesh News: The sharp increase in power purchase from the private sector continues against the rise of overall production as private plants generated 56.72 per cent of the total amount of power in fiscal year 2011-12.
Referring to the government’s mega plan, a Power Division official told New Age that the contribution of the private sector to electricity generation would hit 62 per cent by 2016.
On the one hand the government is encouraging private entrepreneurs to generate more and more power and on the other the generation by the public sector is decreasing.
According to a recent report of the state-run Power Development Board, out of 27,253.19 million kilowatt-hours (unit) of the total power in FY2009-10, 11,359.85 million units were produced by the private sector.
In FY2010-11, the private sector overtook the public sector by producing 14,811.57 million units of power, 50.24 per cent of the total.
The growth of the private sector in power generation continued in the following fiscal year and hit about 57 per cent by producing 19,918 million units of electricity out of 35,118.28 million.
PDB officials and experts said that the government’s negligence in increasing power generation by the old plants as well as the setting up of new plants in the public sector allowed the private entrepreneurs to establish their domination in electricity generation.
They said that the overall generation cost of power would continue increasing with the growing dependence on the private sector.

Bangladesh News: Pvt cos rule power sector with govt approval


Shamsul Alam, energy adviser of the Consumers’ Association of Bangladesh, told New Age on Saturday that it was the government’s policy to let the private entrepreneurs take control of the power sector.
He warned that the country’s energy security would be threatened if power production was in the control of the private sector.
Zaid Bakht, research director of the Bangladesh Institute of Development Studies, said that the common people would have to bear the brunt of the increasing generation cost of power as the concerned authorities will realise the extra cost from the consumers.
Besides, the cost of living will increase further, even for those who do not have access to electricity, because of the increase of the prices of essentials due to rise of power prices.
According to data available with the Bangladesh Energy Regulatory Commission and PDB, average power generation cost will shoot up to Tk 5.57 a unit in FY2012-13, which is more than double the cost (Tk 2.59 a unit) in FY2009-10.
Audited reports show that the PDB produced 10,488.33 million units of electricity, other public sector companies produced 5,405.01 million while small and big independent power producers generated 9,098.59 million and rental plants produced 9,098.59 million in FY2009-10.
In the next fiscal year the PDB produced 10,278.88 million units of electricity, other public sector companies 4,394.03 million while small and big independent power producers generated 9,389.64 million and rental plants 5,421.93 million.
This year power generation by the public sector plants dropped by 1,220.43 million units although total generation increased by 2,231.29 million, mainly due to the diversion of gas to the private plants from the public sector.
PDB officials said that the government had to ensure gas supply to the private plants due to contractual obligations as the minimum bills would have to be paid whether or not electricity is bought from the those plants.
In FY2011-12, power generation by the public sector increased by 527.37 million units as about 10 fuel oil-run plants had started power generation. (Source: New Age)

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Dhaka Stock Exchange to oppose Orion Pharma’s IPO approval


Dhaka Stock Exchange has decided to oppose the initial public offering of Orion Pharma that the Securities and Exchange Commission approved last month.
The DSE board in a meeting on Thursday made the decision after hearing the observations of an committee of experts.
The DSE panel pointed out a number of questionable features in the IPO prospectus of Orion Pharma including unjustified asset revaluation, slow growth in core business and misleading information in the financial statement.
The DSE panel said that the Tk 60 offer price of the Orion Pharma’s shares, including Tk 50 premium, was unreasonable, and also questioned SEC’s hurried move to approve the revised IPO proposal.
The SEC approved the revised IPO proposal of Orion Pharma on October 16 with offer price of Tk 60 within two days after the company submitted the proposal.
According to the panel’s observation, the company re-evaluated its fixed asset twice, in 2008 and 2011, where the value of Tk 59.09 crore worth assets stood at Tk 117.22 crore.
The panel said such re-evaluation of depreciable fixed assets was unjustified.
It also observed that the re-evaluation of Orion Pharmaceutical’s subsidiary companies, IEL Consortium and Associates and Dutch Bangla Power, was also unjustified.
The IEL Consortium re-evaluation surplus was shown at Tk 28.56 crore on December 2011 whereas the company started its commercial operation in May 2011.
The Dutch Bangla Power’s re-evaluation surplus was shown at Tk 41.54 crore on December 2011 whereas the company started commercial operation in July 2011.

Dhaka Stock Exchange to oppose Orion Pharma’s IPO approval


‘The panel strongly believes that the re-evaluation of such a new company prior to commercial operation was unusual and motivated, meant to inflate the net asset value to achieve higher offer price,’ it said.
The panel also observed that among the Tk 702.63 crore consolidated revenue of the company in 2011, Orion Pharma contributed only 25 per cent whereas the subsidiary companies contributed 75 per cent.
The project life of both the subsidiaries is 15 years which will hamper the interest of the long-term investors, it said.
The financial statement of Orion Pharma in 2011 showed that the investment of the company in Orion Holding Ltd was Tk 9.96 crore whereas the financial statement of Orion Holding in the same period showed the same investment to be Tk 9.60 crore.
The panel also found Orion Pharma violating the Companies Act 1994 as the managing director of the company is also the managing director of the two other subsidiaries of the company.
Section 109 of the Companies Act 1994 bars any such practice unless the government’s permission was taken is this regard.
Orion Pharma is yet to receive any permission from the government to let its managing director run other subsidiary companies.
‘The SEC should reconsider the approval of Orion Pharma for the greater interest of the investors,’ the panel concluded.
‘We will submit the panel’s observations and board’s decision about Orion Pharma to the SEC this week,’ a senior official of the Dhaka Stock Exchange told New Age.

Bangladesh women entrepreneurs not getting desired loans

Bangladesh women entrepreneurs in small and medium enterprises could not get desirable loans from January 2010 to June 2012, thanks to banks’ and non-bank financial institutions’ reluctance, said Bangladesh Bank officials.
They, however, said that the loan disbursement to the women entrepreneurs had increased on year-on-year basis during the period, as the BB took a number of initiatives in this regard.
According to the latest BB data, the banks and NBFIs have disbursed SME credit to the tune of Tk 139,518.98 crore from January 2010 to June 2012.
Of the amount, Tk 5,097.72 crore was disbursed to the women entrepreneurs.
The percentage of disbursement to the women entrepreneurs of total SME credit was 3.65 per cent during the period, showed the BB data.
The BB had earlier asked the banks and NBFIs to disburse minimum 10 per cent loans to the women entrepreneurs of their total disbursed loans in SME sector in a year.
A BB official on Thursday told New Age that the central bank had always preferred to disburse loans to women entrepreneurs under the refinance scheme, but the banks and NBFIs were showing reluctance in this regard.
BB data showed that banks and NBFIs had disbursed Tk 2,416.17 crore loans under the SME refinance schemes in the two and a half years. Percentage of refinance to total SME financing during the same period was only 2 per cent.

Bangladesh women entrepreneurs not getting desired loans


Under refinance schemes, banks and NBFIs distributed Tk 381.43 crore to the women entrepreneurs in the period. The percentage of refinance to women entrepreneurs comparing to that of the total SME credit to women entrepreneurs during the same period stands at 7.48 per cent.
BB SME and special programmes department general manager Sukamal Sinha Choudhury told New Age that the loan disbursement to the women entrepreneurs had increased consecutively between January 2010 and June 2012.
He said the banks and NBFIs disbursed Tk 1,804.98 crore in SME loans to women entrepreneurs in the year 2010 whereas the total disbursed credit stood at Tk 53,543.93.
The percentage of disbursement to women entrepreneurs of the total SME credit was 3.37 per cent in 2010.
In 2011, Tk 2,048.45 crore were disbursed to the SME women entrepreneurs, which was 3.81 per cent of the amount Tk 53,719.44 crore — the total disbursed SME credit in the year, Sukamal said.
Banks and NBFIs in the first half of this year disbursed Tk 1,244.29 crore to the women entrepreneurs, which was 3.86 per cent of the total disbursed SME credit amounting to Tk 32,255.61 crore during the period of the year.
When asked why the loan disbursement to the women entrepreneurs in the period did not reach at 10 per cent, the BB GM said that the bankers were ignorant about the women entrepreneurs.
Besides, the women entrepreneurs usually fail to show the required collateral against the bank loan and they also cannot get support from the family and society in favour of their new businesses. 
The BB GM admitted that they were receiving a number of plans to increase the loan disbursement to the women entrepreneurs.
The central bank will arrange more training programmes, workshops, seminars for the women entrepreneurs in the coming days.
Organising fair for Bangladesh SME women entrepreneurs would be increased and more initiatives would be taken in group-based financing and cluster-based financing, he added.