Bangladesh: BTRC again declines to pay income tax

Dhaka, July 18, 2014 (New Age): Bangladesh Telecommunication Regulatory Commission has again declined to pay income tax to the National Board of Revenue claiming that it has no taxable income, officials said. Claiming itself as a non-taxable entity, the telecom regulator on Thursday demanded that the NBR should exempt it from paying taxes and withdraw the provision incorporated in the Income Tax Ordinance-1984 imposing the taxes on the income of the commission in the budget for the current fiscal year. In a letter sent to the NBR chairman, Ghulam Hussain, the BTRC said the commission had no income rather it just collected non-tax revenue on behalf of the government. Officials of the revenue board, however, told New Age that there was no scope of withdrawal of the provision and the BTRC must have to pay tax on its income as the provision was passed by parliament. The revenue board has already assigned the large taxpayer unit of the NBR to look after the tax issues of the BTRC, they said. The revenue board and the telecom regulator have been in dispute for more than three years over the latter’s refusal to pay taxes at the rate of 37.5 per cent on its income and other advance taxes. In the FY 2012-2013, the NBR claimed around Tk 2,400 crore from the BTRC for the previous fiscal year. The revenue board has been asking the BTRC for paying taxes terming the commission as taxable entity while the BTRC has been rejecting the idea that it has any taxable income. Finally in the budget for the FY 2014-2015, the government reduced the tax rate and set it at 25 per cent for the BTRC along with some other autonomous bodies. The government also incorporated a article (52V) under which mobile operators would also deduct advance income tax at the rate of 10 at the time of any payment on account of revenue sharing, licence fee, application fee, renewal fee or any other fees or charges, called by whatever name, to the BTRC under any licensing agreements and licensing guidelines between the BTRC and operators. In this context, the BTRC made the request to the NBR for withdrawal of the provision to exempt it from paying taxes. The letter stated that the commission had no income as it did not earn. Rather, the telecom regulator only collects revenue on behalf of the government and submits it to the government exchequer, so nothing taxable remains, the letter said. BTRC officials said that they submitted the collected revenue to Bangladesh Bank every six months. Prior to being submitted to the BB the collected revenue is kept in the commercial banks and the BTRC submits the money to the central bank with interest, they said. The Bangladesh Telecommunications Act 2001 also exempted the BTRC from payment of taxes, they said. ‘Parliament imposed the taxes on BTRC. So it will have to pay the taxes and there is no scope to avoid it,’ an NBR official told New Age. Only the parliament can withdraw the taxes, he said. Mobile operators has already started to deduct AIT on payment to the BTRC while income tax at the rate of 25 per cent will be calculated when the body will submit income tax returns, he said. The NBR does not see any reason for non-payment of tax by the BTRC even though the body collects the money on behalf of the government, NBR officials said. Paying tax will ensure the accountability and transparency in financial issues of the telecom watchdog, they said.

Bangladesh: 77 cos with Tk 289cr EEF loan traceless, reveals BIDS study

Dhaka, July 18, 2014 (New Age): There is no trace of at least 77 companies which borrowed capital amounting to Tk 289 crore from Equity and Entrepreneurship Fund of Bangladesh Bank, a recent survey of Bangladesh Institute of Development Studies (BIDS) revealed. Bangladesh Bank, however, on Thursday contested the BIDS survey saying only six companies were traceless after embezzling funds from the EEF. According to the BIDS report, the BB and the ICB sanctioned capital to 166 companies of which the BIDS survey team did not find any project offices of 77 companies at their referred places in accordance with their equity proposals submitted to the central bank and Investment Corporation of Bangladesh. Bangladesh Bank officials told New Age that the political activists patronised by the government siphoned out the money from the EEF having low interest rate. The fund was created in FY 2000-2001 to patronise them (political activities). The BIDS has recently conducted a field survey on the utilisation of the EEF and the research organisation feared that the disbursed fund for 77 companies might not be refunded. The BB and the ICB are jointly conducting the EEF operation. The BB has already taken legal action against the six companies to recover the fund, BB executive director Dasgupta Asim Kumar told reporters at a press briefing at the central bank headquarters in the capital. The six companies of Information and Communication Technology sector are Dreams Soft Ltd, Intersepts Software Services Ltd, Jupiter IT Ltd, Marphee Mccann Consulting Ltd, Information Technology Matrix Ltd and Resource Technology Ltd. The ICB and the BB disbursed Tk 3.25 crore against the sanctioned equity amounting to Tk 6.03 crore to the six companies, according to a BB report. The BIDS report said that the non-existing 64 out of the 77 companies had promised in their proposal papers that they would invest the fund in the agriculture sector and rest of the companies would make investment in the ICT sector. Asim Kumar, however, claimed that 77 companies except six companies under the ICT sector had actually changed their address resulting that the BIDS survey teams did not find them out. The agriculture-based companies have no scope to embezzle the money from the EEF as they have to register their lands with the land office against the projects, he said. When asked whether the EEF was sanctioned on the basis of political consideration, he said that a number of political leaders and activists had gained the fund, but the BB sanctioned the capital by scrutinising their proposals. BIDS research director Zaid Bakht told New Age that the companies, which took equity from the EEF, should have informed the BB about the relocation of their project offices. ‘The 66 companies did not inform the central bank about their office shifting. Besides, the BIDS survey teams also unearthed that some companies had no projects at their referred places’, he said. The government created the EEF in the FY2001 with an initial capital of Tk 100 crore. The government allocated Tk 2,700 crore between the FY 2000-01 and the FY 2013-14 of which Tk 1,825 crore was disbursed. The BB and the ICB has so far granted the fund to 1,443 projects. Investors of Agriculture and ICT sector can apply for the fund with zero interest rate from the EEF. The tenure of the repayment of the fund is eight years. 

Bangladesh: Production at Hameem Group unit suspended at Tejgaon

Dhaka, July 18, 2014 (New Age): The government-set review committee on Wednesday asked the authorities of Thats’ It Fashions Ltd, which is housed in a 10-storey building in the Tejgaon area in the capital, to suspend production immediately after the inspection teams of North American retailers’ group had found the factory unsafe. Alliance for Bangladesh Worker Safety, a platform of North American retailers group, detected serious structural faults in the factory building and on July 7 referred the findings to the review committee comprised of representatives from the government, Accord, Alliance, BUET, BGMEA and BKMEA recommending evacuation from the building. The review committee experts on Wednesday visited the factory, a concern of Hameem Group, and found that the factor of safety of the building was not adequate as the columns of the buildings were highly overstressed and one of the edge column experienced crack. The review committee also found differences between the permitted drawings and the current status of the building. ‘We have recommended factory authorities to evacuate the top six floor of the buildings immediately and also asked them to suspend production in ground to 5th floor within 6 weeks,’ Syed Ahmed, inspector general of the Department of Inspection for Factories and Establishment, told New Age on Thursday. He said that the review committee also asked the factory authorities to conduct detail engineering assessment of the factory building within six months. A review committee source, however, said that the experts suggested removal of all storage and products from the building within October 15. AK Azad, managing director of Thats’ It Fashions Ltd, said that earlier they had retro fitted the building and was running production as engineers certified the building as safe. ‘Now the experts of the review committee raised questions over the structural safety of the building and we have decided to relocate the factory after Eid-ul-Fitr,’ he said. Azad said that the construction of own building for the factories have been completed and the production will be shifted there. Syed, also the chair of the review committee, said that 2,600 workers worked at the factory and already 1,000 workers have been provided with jobs in other factories of the same management. Quoting the factory authorities he said that 1,600 workers would remain jobless during the relocation period of the factory and latter on all of them would be given jobs in several factories of the company. After the Rana Plaza building collapse on April 24 last year that killed more than 1,100 workers, mostly women garment workers, North American apparel companies, retailers and brands formed Alliance and European Union retailers formed Accord on Fire and Building Safety to improve safety in Bangladeshi RMG factories. Both the initiative started inspection in over 2,200 garment factories in February this year. Alliance completed safety assessment of its listed 601 garment factories in Bangladesh and 4 factories were shut as per its recommendations. Accord has so far inspected over 800 factories of its listed over 1600 factories and 19 factories so far have been closed as per its recommendations.

Bangladesh: Banks’ remittance delivery time cut

Dhaka, July 18, 2014 (New Age): Bangladesh Bank has asked scheduled banks to deliver wage earners remittances by two working days to the beneficiaries. Currently it takes 72 hours to deliver the remittances. The BB issued a circular to the authorised dealer branches of all banks on Wednesday saying that the central bank had taken the initiative to step up the inflow of remittances. A BB official told New Age on Wednesday that the expatriate Bangladeshis would encourage more to send the remittances to their relatives as they (relatives) would collect the money in the quickest possible time from the banks. He said that the central bank had recently taken a number of initiatives to step up the inflow of remittances al though the inflow registered a negative growth in the financial year 2013-14 for the first time in last 14 years against the backdrop of downward manpower exports. The country received $ 14.22 billion in remittance in FY14, which was 1.61 per cent lower than the $14.46 billion in remittance received in FY13.

Bangladesh: RMG-related banks to remain open July 26

Dhaka, July 18, 2014 (New Age): All scheduled banks will keep open their readymade garment-related branches on Saturday (July 26) for the convenience of payment of salaries, Eid bonus and other allowances to the workers. Bangladesh Bank in response to the request of the Bangladesh Garment Manufacturers and Exporters Association has asked the scheduled banks to keep open their branches in the capital, Ashulia, Tongi, Gazipur, Savar, Narayanganj and Chittagong ensuring sufficient security, said a BB release on Thursday. 

Bangladesh: Stocks end flat as large cap cos lose steam

Dhaka, July 18, 2014 (New Age): Dhaka stocks finished flat on Thursday, last trading session of the week, despite increase in share prices of the two-third of the issues traded on the day as large capitalised stocks including multinational companies shed prices. The key index of Dhaka Stock Exchange, DSEX, finished at 4,392.15 points, adding 0.06 per cent or 2.79 points. Of the 299 shares and mutual funds traded on the day, 175 advanced, 87 declined and 37 remained unchanged. Market operators said the fall in the share prices of large capitalised companies including multinational ones was the main reason for the flat ending of the day. Pre-Eid share sell-offs were noticeable on the day which kept the market flat despite an increased participation by the institutional investors, they said. The market had suffered a straight nine trading session fall as the institutional investors remained on the sideline after the June 30 half-yearly closing, operators said. After the key index fell around 150 points, the institutional investors from this week increased their participation on the trading floor to avail the opportunity of buying cheap shares, they said. DS30, the blue-chip index of the DSE, however, fell by 0.13 per cent, or 2.19 points, to close at 1,602.93 points on Thursday. The Shariah index of the DSE, DSES, also declined by 0.26 per cent, or 2.65 points, to stand at 998.87 points. Turnover of the DSE stood at Tk 253.21 crore on Thursday while it was Tk 256.45 crore in the previous trading session. ‘An increased supply pressure at the later part of today’s [Thursday’s] trade netted opening upbeat vibe and left the bourse in flat territory,’ IDLC Investments said in its daily market commentary. ‘In the meantime, the market absorbed slight impact of macroeconomic data like wane of current account surplus and declined remittance flow,’ it said. BEXIMCO led the turnover leaders with its shares worth Tk 23.52 crore changing hands. Shahjibazar Power Company, Grameenphone, The Peninsula Chittagong, MJL Bangladesh, Far Chemical Industries, Square Pharmaceuticals, Envoy Textile, BSRM Steels and Olympic Industries were among the other turnover leaders. Shahjibazar Power Company gained the most with an 11.44-per cent increase in its share price, while Sandhani Life Insurance lost the most, shedding 22.89 per cent.

Bangladesh: Amu warns of cancelling plots at Jamdani industrial city

Dhaka, July 18, 2014 (New Age): Industries minister Amir Hossain Amu has warned that the government will cancel the allocation of the plot if the entrepreneurs would not set up their industries at the Jamdani industrial city within stipulated time. ‘The government will cancel the plot allocation and distribute among the new entrepreneurs, if the entrepreneurs would not set up their industries at the Jamdani Industrial city within the scheduled time’, the minister stated. Amu said as chief guest while he was opening the week-long Jamdani display programme at the national museum auditorium in Dhaka on Thursday. Bangladesh Small and Cottage Industries Corporation organised the display. Cultural affairs minister Asaduzzaman Noor also attended the inaugural function as special guest. The government has set up the Jamdani industrial city and research centre on 20 acres of land at Noapara of Tarabo union under Narayanganj with a view to enhance the traditional Jamdani industries. As many as 409 industrial plots have already been set up at the industrial city with a cost of nearly Tk 5.86 crore. Out of the plots, so far 399 industrial plots have been distributed among industrial entrepreneurs for setting up their industries. Industries secretary Mainuddin Abdullah presided over the meeting. The meeting was also addressed, among others, by BSCIC chairman Shyam Sundar Sikder, director (design and marketing) Nurul Islam. The industries minister told at the function that ‘the government is fully aware of the traditional Jamdani industries of the country as about $1.58 lakh is being exported to abroad every year from this sector.’ The Jamdani of Bangladesh has already been acknowledged as part of the world heritage, said the cultural affairs minister Assaduzzaman Noor at the function. The weeklong fair will remain open for the people every day from 9:00am to 4:00pm.

Bangladesh, Bhutan sign MoU on anti-money laundering

Dhaka, July 18, 2014 (New Age): Bangladesh Financial Intelligence Unit and the Financial Intelligence Unit of Bhutan have recently signed a memorandum of understanding in Macau of China to exchange information relating to money laundering and terrorist financing. The MoU was signed by Eden Dema, deputy governor, Royal Monetary Authority of Bhutan, and M Mahfuzur Rahman, deputy head, Bangladesh Financial Intelligence Unit and executive director, Bangladesh Bank, on behalf of their own organisations. Both of them are attending The 17th Annual Meeting of The Asia/Pacific Group on Money Laundering now being held in Macau, said a news release on Wednesday.

Bangladesh: Mizanur Rahman Shelley becomes Premier Leasing chairman

Dhaka, July 18, 2014 (New Age): Mizanur Rahman Shelley has recently been elected as chairman of Premier Leasing and Finance Limited.
The election was held in the 128th meeting of the board of directors of Premier Leasing, said a news release.
In the same meeting, Md Mizanur Rahman Chowdhury, a sponsor and ex-director of Mercantile Bank, was elected as the vice-chairman of Premier Leasing.
Shelley, who was the founder chairman of the company from 2002 to 2011, obtained his Masters degree from University of Dhaka in 1963 and PhD from University of London in international politics in 1976. He was a former minister of government.
Shelley was awarded the highest Polish Order of Merit by Lech Walesa, a Nobel Laureate for peace in 1991. He also received the Michael Modhushudan Dutta award in 1999 for his contribution to creative literature and social service.

Bangladesh: Exports to India hit 4yr low, China boom

Dhaka, July 14, 2014 (New Age): Export earnings from India hit four-year low at $456.63 million in the just concluded financial year 2013-14 while the exports to China skyrocketed by 62.85 per cent in the fiscal year. Experts and exporters said that the export to India witnessed a decreasing trend due to non-tariff barriers and devaluation of the currency of the country. On the other hand the export to China is booming as the country is moving towards high-end products from basic products and extended zero-tariff excess to Bangladeshi products. According to the Export Promotion Bureau data, the export earnings from India posted a 19.03-per cent negative growth from $563.96 million of the FY 2012-2013. The export earnings from China increased to $746.19 million in the FY14 from $458.18 million reading on the incredible growth of exports of RMG and leather and leather products, the EPB data showed. Ahsan H Mansur, executive director of the Policy Research Institute, told New Age that the export to India had dropped due to the devaluation of the rupee against the US dollar. On the other hand, the exporters were not considering India as the prime export destination, he said. Mansur said that the export earnings from China were increasing gradually as garment products, the main export products of Bangladesh, penetrated in the market. The duty- and quota-free entry facility to the Chinese market was also an opportunity for Bangladesh, he added. The exports of readymade garment products to India increased to $96.25 million in the FY14 against $75.21 million in the FY13 but the export earnings from non-RMG products posted negative growth. Exports of jute and jute-related products decreased to $80.70 million in the FY14 from $133.85 million in the FY13 while exports of fruits and related items fell to $60.71 million from $67.53 million and fish to $4.01 million from $13.78 million. The export of RMG products to China grew by around 73 per cent to $241.37 million in the FY14 from $139.14 million in the FY13. Export earnings from leather and leather products grew by 251.40 per cent to $227.85 million in the FY14 from $64.84 million in the FY13. Exports of jute and jute products to China increased to $103.49 million in the FY14 from $88.37 million in the FY13. Nazneen Ahmed, senior research fellow of Bangladesh Institute of Development Studies, said that non-tariff barrier was the main reason for the export slowdown to India. ‘India removed tariff barriers for the Bangladeshi products including garments but non-tariff barriers still remain which discouraged exporters,’ she said. Nazneen said that China was decreasing the production of low-end products due to increasing labour cost and importing the items from other countries including Bangladesh as the country (China) is moving towards hi-tech industry. The export of basic garments and other products increased to China due to competitiveness of Bangladeshi products, she said. ‘There is a huge potential in the China market for the Bangladeshi garment products as the country [China] is shifting its production to hi-end products,’ Shahidullah Azim, vice-president of Bangladesh Garment Manufacturers and Exporters Association, told New Age. He said that the garment exporters were giving special emphasis on the market size of the country which was $338 billion. Azim also said that the exporters did not feel comfortable in exporting to India due to non-tariff barriers. The export earnings from India were $563.96 million in the FY 2012-2013, $498.4 million in the FY 2011-12, $512.50 million in the FY 2010-2011 and $304.62 million in the FY 2009-2010, according to the EPB data. Exports to China had stood at $178.63 million in the fiscal year 2009-10 and those shot up to $319.66 million in the FY 2010-11 as China extended duty-free access. In the FY 2011-12, the exports to China stood at $401.94 million and in the FY 2012-13, the exports stood at $458.11 million, according to the EPB data.

Bangladesh: GB gets tax waiver for Jan-June of 2011

Dhaka, July 14, 2014 (New Age): The National Board of Revenue has decided to grant Grameen Bank exemption from tax on its income for the period of six months with retrospective effect from January 2011 to June 2011, officials said.
They said that the NBR at a recent board meeting decided to provide the exemption in a bid to remove the complexities Grameen Bank was facing in preparing financial statements for the period.
Earlier, the revenue board had rejected a plea made by the Nobel-winning microfinance institution seeking exemption from tax on its income for the period.
Now, the revenue board has backtracked from its earlier decision in line with the government’s softened stance on the issue, officials said.
Officials said that Grameen Bank had enjoyed tax exemption facility from its inception in 1983 to December 2010.
But the decision of extending the facility to Grameen Bank was pending until June 2012 when the NBR had again provided tax exemption facility for four years and six months until December 2015 with retrospective effect from July 2011, they said.
In the process, the period from January 2011 to June 2011 had been left out of the exemption facility.
Grameen Bank earlier had paid Tk 10 crore in advance income tax in the fiscal year 2011-2012 amid uncertainty about getting exemption because of delay in decision of the government at that time.
Later the bank in several times sought the exemption for the period saying that it had already completed its annual financial statement for the year 2011 following January-December as financial year.
If the tax exemption is not provided, the bank will have to prepare half-yearly financial statement based on credit and deposit accounts of the 84 lakh members of the bank which is time-consuming, tough and problematic for the bank, Grameen Bank claimed.
Officials said that that considering these problems, the revenue board took the decision of allowing the exemption for the period.
On the other hand, the institution enjoyed and is enjoying the tax exemption in pre and post period of the six months, they said.
The revenue board, however, will not give back the money paid as advance tax by Grameen Bank as the current exemption period is scheduled to expire in December 2015, officials said.
They said that the money would be adjusted with the payable tax of the institution if the revenue board would not extend the exemption period.

Bangladesh: Modi govt lowers grants for Bangladesh by 40pc

Dhaka, July 14, 2014 (New Age): India’s government of prime minister Narendra Modi has lowered the grants for Bangladesh in the current year’s national budget by 40 per cent to Rs 350 crore as against Rs 580 crore last year. Bangladesh is the only country in the South Asian Association for Regional Cooperation region for which the Indian budget has made lower provisions, reports Times of India. Comparatively, other countries of the SAARC have got marginal hikes in grants from the Indian government this year. Even Afghanistan, where India’s engagement has increased in recent years, has been allocated Rs 676 crore, not a big hike against last year’s Rs 525 crore. Nepal, with which the PM has expressed his desire to engage more, has not found as much prominence as Bhutan in monetary terms. Among grants and loans to foreign countries, Nepal has got Rs 450 crore as against Rs 380 crore in the previous year. In case of Sri Lanka, the allocation has been Rs 500 crore, an increase of Rs 90 crore from last year. Modi’s engagement with Bhutan has helped the Kingdom nation with the grants and loans allocated to the latter going up by nearly 50 per cent — from Rs 4,100 crore last year to Rs 6,000 crore this year. Bhutan has always been getting significant financial aid from India by way of grants, both under plan and non-plan expenditure heads. This year, particularly after Modi visited the neighbouring country soon after his swearing-in, the NDA government has significantly increased the financial package. Bhutan was Modi’s first foreign visit. PM Narendra Modi showed his special emphasis on neighbourhood diplomacy with his one-on-one meetings with all SAARC heads of government on his first day in office. He had invited all SAARC leaders for his swearing in ceremony. The next day, he met Pakistan PM Nawaz Sharif, Afghanistan president Hamid Karzai, Sri Lankan president Mahinda Rajapaksa and heads of governments from Maldives, Mauritius, Nepal and the speaker of Bangladesh parliament. 

Bangladesh: BB for ACC action against BASIC’s ex-board members

Dhaka, July 14, 2014 (New Age): Bangladesh Bank on Sunday said it will send the detailed inspection report on the BASIC Bank loan scam to Anti-Corruption Commission so that the corrupt board members of the state-owned bank could be charged for criminal offence. The BB asked the newly constituted board of BASIC Bank to take punitive measures against its officials who were involved with the loan scam in collaboration with the former bank chairman Sheikh Abdul Hye Bacchu and managing director Kazi Fakhrul Islam. The newly appointed BASIC Bank chairman Alauddin A Majid on Sunday met with BB governor Atiur Rahman while the central bank asked to take measures to restore good governance so that the clients would regain their confidence in the bank. After the meeting, the central bank arranged a press briefing over the latest situation of BASIC Bank when BB executive director SM Moniruzzaman said that the new board would have to bring credit discipline in the bank in the shortest possible time to regain good governance. ‘The central bank has no scope to take action under the criminal laws against the corrupt officials and board members, and hence it will send its detailed inspection report to the ACC. The ACC may detect the involvement of the board members with the scam if it (ACC) conducts an in-depth investigation, he said. The BB asked the bank chairman not to approve any loan proposal according to the wish of any single director, he said. According to the central bank report, BASIC Bank disbursed more than Tk 4,500 crore in loans in the last few years violating rules and regulations. The BB report unearthed that the recently dissolved BASIC Bank board along with its management were involved with the irregularities. The BB asked the new BASIC Bank chairman to step up its default loan recovery programme and the board would have to review the latest situation of the non-performing loans at its next meetings, he said. ‘The bank board will have to ensure transparency and responsibility. The board earlier did not streamline its audit. From now on, the board will have to oragnise the meetings in accordance with the central bank direction,’ he said. BB inspection team found that the Shantinagar, Dilkusha, Gulshan, Agrabad and Jubilee Road branches of the state-owned bank had perpetrated huge anomalies in recent years, he said. The central bank earlier gave directions to the bank to reestablish governance at the branches, but it (BASIC Bank) did not comply with the direction of the central bank, Moniruzzaman said. The BB asked the bank to collect the real situation of the branches through field survey which would help to recover the defaulted loans, he said. ‘The BB will not intervene into the human resource system of BASIC Bank. But the bank will have to take action against its unskilled and corrupt officials’, he said. The new BASIC Bank board will hold its first meeting today. The BB governor asked the BASIC Bank chairman to restrict the bank’s spending, he said. The central bank also asked BASIC Bank to appoint a managing director and chief executive officer in the quickest possible time so that the management of the bank can function smoothly and efficiently, he said. In June, the BB fired BASIC Bank managing director Kazi Faqurul Islam for his involvement in the loan scam. The government also dissolved the board of directors of the BASIC Bank after the resignation of its controversial chairman Sheikh Abdul Hai Bachchu and replaced him with Alauddin A Majid.

Bangladesh: BSEC warns Agrani over raising capital without approval

Dhaka, July 14, 2014 (New Age): Bangladesh Securities and Exchange Commission has warned Agrani Bank Limited, a state-owned entity, over raising capital for three years without getting the approval of the capital market regulator. The BSEC sent a warning letter to the bank in June after holding a hearing from the Agrani Bank on April 28 this year. Agrani Bank is a non-listed public limited company. BSEC warned Agrani Bank as it had increased its paid up capital to Tk 991 crore in 2012 from Tk 547 crore in 2010, a BSEC senior official said. As per the securities rules each and every company is bound to get approval from the BSEC before increasing paid up capital, he said. A BSEC letter issued to the managing director, directors and company secretary of Agrani Bank said, ‘The commission, considering the explanation (of the bank) has decided to dispose of the proceedings against Agrani Bank by placing on record the Commission’s dissatisfaction on the default/contravention made by you (Agrani Bank) with a warning to ensure compliance of all securities related laws in future.’ The letter also said that disposal does not absolve the bank from its lawful responsibilities/obligations to any person, if affected, as a result of the stated default. As per the BSEC’s finding, the paid up capital of Agrani Bank was Tk 248 crore in 2008 which increased to Tk 497 crore in 2009 as the company issued 100 per cent stock dividends for its share holders. The paid up capital of the company increased by another 10 per cent to Tk 547 crore in 2010 after the Bank declared 10 per cent dividend. The capital of the company increased to Tk 901 crore in 2011 as it had declared 10 per cent dividend for its investors. The paid up capital of Agrani Bank increased by Tk 90 crore to Tk 991 crore in 2012, the audited financial statement of the bank showed. During the hearing, Agrani Bank confessed its unwilling mistake.

Bangladesh: Stocks fall for ninth day, turnover hits fresh 9-month low

Dhaka, July 14, 2014 (New Age): Dhaka stocks declined for the ninth trading session on Sunday with the turnover hitting fresh nine-month low due to low participation of institutional invests since the June 30 half-yearly closing. The key index of Dhaka Stock Exchange, DSEX, lost 0.42 per cent, or 18.72 points, to close at 4,344.36 points on the day. The DSEX shed142.71 points in the last nine trading sessions. Frustrated by the continues fall in the share prices, a section of retail investors formed human chain in front of the Bangladesh Securities and Exchange Commission’s office at Motijheel in the city during the trading hour on Sunday. They demanded that the government should intervene into the market to save it from further fall and to rescue the investors who have been suffering from huge losses since the market crash in 2010-2011. Market operators said that the market was suffering from lack of intuitional investors’ participation on the trading floor which was the main reason for the continuous fall in the share prices. Institutional investors are waiting to buy shares at cheaper prices, they said. Operators said amid the downward trend retail investors were suffering from lack of confidence. Unless the institutional investors increase their participation on the trading floor, the market will not get a positive momentum, they said. Turnover of the bourse declined to Tk 149.96 crore on Sunday from that of Tk 177.21 crore in the previous trading session. Sunday’s turnover was the lowest after Tk 110.43 crore on October 20 last year. Turnover of the bourse had declined to Tk 157.49 crore on Wednesday last week. DS30, blue-chip index of the bourse, finished at 1,595.27 points, shedding 0.56 per cent or 9.12 points. The Shariah index of the DSE, DSES, fell by 0.66 per cent, or 6.63 points, to close at 990.26 points. Of the 291 shares and mutual funds traded on Sunday, 63 advanced, 179 declined and 49 remained unchanged. BEXIMCO led the turnover leaders with it shares worth Tk 12.08 crore changing hands on the day. The company gained the most with an 8.50-per cent increase in its share price. Grameenphone, Lafarge Surma Cement, Far Chemical Industries, Olympic Industries, Square Pharmaceuticals, United Airways, Square Textile, Generation Next Fashions and Padma Oil were among the other turnover leaders. MIDAS Financing lost the most, shedding 10 per cent. The share prices of the company had advanced significantly after the BSEC had approved its rights offering. 

Bangladesh: bKash offers 15pc cash back on shopping during Ramadan

Dhaka, July 14, 2014 (New Age): Mobile financial service provider bKash Limited has offered 15 per cent cash back to its customers if they pay for their shopping at selected places through bKash. The offer is available at Aarong, Yellow, Cats Eye, O2, Kay Kraft, Anjan’s and Monson Rain, said a news release. Started from the first day of Ramadan, the customers can avail the offer till the Eid-ul-Fitr day. Making payment through bKash is free of charge. Once the transaction is done, customer will receive the eligible cash back amount in his or her bKash wallet within next working day, said the release.

Bangladesh: RMG workers rally for arrears and festival allowance before Eid

Dhaka, July 14, 2014 (New Age): Leaders of National Garments Workers Federation on Sunday at a human chain in Dhaka demanded paying the wages and festival allowance of the garment workers within Ramadan 20. The federation formed a one hour human chain in front of the National Press Club at 11:00am to press their demands. Amirul Haque Amin, the president of the organisation called on the Awami League-led government to take steps to pay the wages and bonus of the apparel workers within Ramadan 20. He also called on the government to take steps for holding meetings between the management and the workers’ leaders to avoid labour unrests in the factories before Eid-ul-Fitr. In past years, Amirul said, the factory owners did not pay the wages and the festival allowance properly in due time resulting the labour unrests before Eid.

Bangladesh: Petrobangla to float int’l tenders this year

Dhaka, July 12, 2014 (New Age): The state-run Petrobangla is planning to float international tenders by this year for oil and gas exploration in eight offshore blocks, the boundaries of which have been settled by the Permanent Court of Arbitration, officials have said. They said that Petrobangla, under model production sharing contract, would offer more stakes to the international oil companies than the model PSC 2012 had done for exploring the area. Petrobangla chairman Hossain Monsur said that the conditions for the tenders would be set in a way so that the international oil companies were attracted. He said that Petrobangla was also weighing the idea of engaging its subsidiary Bapex in joint venture with competent foreign firms for oil and gas exploration in the eight offshore blocks. Besides, he said that the government would itself invest in a section of the blocks by employing foreign firms. Prime minister Sheikh Hasina, who also holds the ministry of power, energy and mineral resources, asked the authorities to rearrange the boundaries of the eight offshore blocks based on the maritime boundary demarcated between Bangladesh and India by the Hague-based Arbitration Court, secretary to the PMO Abul Kalam Azad told New Age. The Arbitration Court verdict enabled Bangladesh to explore two shallow sea blocks ­– 1 and 5 – and six deep sea blocks – 9, 14, 15, 19, 24 and 25 – leaving a total of about 6,000 square kilometres area of the Bay of Bengal to the Indian side, officials said. In 2008, Bangladesh suspended a bidding process in the eight offshore blocks as India claimed its ownership over the sea area. Myanmar also claimed its ownership over a number of offshore blocks in the western area of the Bay forcing Bangladesh to conduct offshore bidding for eight blocks out of 20. In 2012, International Tribunal for the Law of the Sea settled the maritime boundary between Bangladesh and Myanmar. In February 2014, Petrobangla completed the process for international tenders for oil and gas exploration in 12 offshore blocks – nine in the shallow sea and three in the deep sea – under Model Production Sharing Contract 2012. The shallow sea blocks are 2, 3, 4, and 6 to 11 and deep sea blocks are 12, 16 and 21. In the model PSC 2012, Petrobangla had already increased the IOCs’ share of gas to $4.5 from $2.9 per 1,000 cubic feet extracted from the shallow sea, while the price for deep sea gas was increased to $6 from $4.5 in 2008. Among other benefits, Petrobangla, in the model PSC 2012, increased the margin of cost recovery to 70 per cent from 55 per cent of the oil and gas extracted from deep sea blocks.

Bangladesh: Many MPs cannot use e-mail

Dhaka, July 12, 2014 (New Age): The parliament secretariat’s e-mail notice programme proved futile as less than half a dozen out of the 350 lawmakers regularly open e-mail and many of them cannot use e-mail. The system was introduced in 2012 to digitalise the notification as there were widespread allegations of missing or unusual delay in reaching important notices and letters send by the parliament secretariat to the lawmakers, said the Jatiya Sangsad Secretariat information technology director, Abdur Razzaque. He said that a short message service was also introduced simultaneously to send notifications to the lawmakers. Parliament secretariat sources said that usually they sent all notifications like notices on summoning parliament, standing committee meetings, order of the day and working papers. Voters from any constituency can also contact their lawmakers on any issue. The sources, however, said that not more than half a dozen of the 350 lawmakers regularly opened e-mails sent from the parliament secretariat and most of the lawmakers could not use e-mail. They said that although the SMS service had some impact, but it was hard to send all the notices in through SMS because of limit of text message sizes. Some of the lawmakers, however, told New Age that they were not getting e-mail or SMS timely. Amatul Kibria Keya Chowdhury (women seat 328, Sylhet) said that she received neither SMS nor e-mail timely and that was why she missed some programmes arranged by the parliament secretariat. Imran Ahmed (Sylhet-4), one of the few lawmakers habituated with e-mail notice system, however, said that he regularly received the notices and letters issued by the secretariat through e-mail.  He said that his colleagues should be accustomed to the system and help materialising the digitisation. The chief whip of the opposition in parliament, Tajul Islam Choudhury, said that he was not habituated to the use of e-mail. ‘My private secretary sometimes opens it and he informs me about the notices,’ he said. Awami League lawmaker Md Manzurul Islam Liton (Gaibandha-1) said that he was not aware of the matter. The speaker, Shirin Sharimin Chaudhury, said that she would take initiative so that lawmakers could become accustomed to the system.

Bangladesh: Govt stages drama over maritime boundary: Fakhrul

Dhaka, July 12, 2014 (New Age): The acting Bangladesh Nationalist Party secretary general, Mirza Fakhrul Islam Alamgir, on Friday said that the government started staging drama over the demarcation of sea boundary with India. Addressing a function at Dhaka Reporters’ Unity, he said that Bangladesh lost 6,000 square kilometres of sea area and South Talpatti island, but the Awami League-led government was claiming that it was a big victory. He said that the people of Bangladesh understood whether it was a victory or defeat. Referring to a write up of former US ambassador in Dhaka William Mailam, he said that Bangladesh was now again moving towards one party rule to establish dictatorship. Fakhrul said that the government should not be allowed anyway to continue in power. The government is destroying all institutions, he added.

Bangladesh: Govt stages drama over maritime boundary: Fakhrul

Dhaka, July 12, 2014 (New Age): The acting Bangladesh Nationalist Party secretary general, Mirza Fakhrul Islam Alamgir, on Friday said that the government started staging drama over the demarcation of sea boundary with India. Addressing a function at Dhaka Reporters’ Unity, he said that Bangladesh lost 6,000 square kilometres of sea area and South Talpatti island, but the Awami League-led government was claiming that it was a big victory. He said that the people of Bangladesh understood whether it was a victory or defeat. Referring to a write up of former US ambassador in Dhaka William Mailam, he said that Bangladesh was now again moving towards one party rule to establish dictatorship. Fakhrul said that the government should not be allowed anyway to continue in power. The government is destroying all institutions, he added.

Bangladesh: Vermicelli not on BSTI list of consumer products

Dhaka, July 12, 2014 (New Age): Vermicelli except the oil-fried ones (lachchha semai) is not on the list of mandatory certification marks of the Bangladesh Standards and Testing Institution despite its huge demand not only in Ramadan but throughout the year.
Dishonest businessmen taking advantage of the loophole have set up hundreds of manually operated machines in different parts of the country, mainly in the slums and remote areas, for producing the food item ignoring its quality.
Lachchha semai, though it is on the list of BSTI consumer items, are also being produced in the unauthorised factories using low quality and harmful raw materials.
The producers are sending low-quality vermicelli in colourful packs similar to popular brands for exploiting the customers. Sometimes they are using the fake BSTI sticker on the packets.
Former director general of the institution Golam Mowlah told New Age on Friday that vermicelli was a popular and widely consumed food item in the country, but there was no constant monitoring on its production.
‘The authorities including the BSTI cannot avoid the responsibility. They must ensure quality of vermicelli as an important food item,’ he said adding that the institution should bring all sorts of vermicelli on the list of its consumer products.
Golam Mowlah, also professor of Institute of Nutrition and Food Science at Dhaka University, said that consumption of substandard vermicelli could cause serious health hazards including acidity, vomiting, diarrhoea and many other diseases as low grades raw materials including expired flour and substandard oil were being used for producing the food item.
The law enforcing agencies on Thursday busted an unauthorised factory at Kamrangir Char in the capital where adulterated and low quality vermicelli was being packaged using the label of ‘Pure ACI Vermicelli’.
ACI Limited authorities, however, told the law enforcers that they had no such vermicelli factory there.
In Rangpur, a section of unauthorised factory owners are reportedly manufacturing substandard lachchha semai, Ghee Bhaja Semai and Sada Semai at places in the district including station area, Babupara, Alamnagar, Shalbon, Mulatol and CO Bazar areas in the city.
In Nilphamari, several hundred makeshift factories have been set at places at Syedpur upazila to produce substandard vermicelli.
In Rajshahi, many businessmen usually set up factories before every Eid at Rajshahi BISIC industrial zone and its adjacent areas to produce substandard vermicelli for extra benefit.
New Age correspondent in Chittagong correspondent reported that dishonest businessmen were producing and marketing substandard vermicelli setting up makeshift factories at places in the city including Khatunganj, Asadganj, Bakolia, Badurtala and Madarbari.
The Institute of Public Health tested vermicelli in the last two years and found that many of the tested vermicelli were adulterated.
Bangladesh Standards and Testing Institution assistant director Reazul Haque said that he had already directed the field officers to make a list of the manufacturers of substandard and adulterated vermicelli considering public health.

Bangladesh: ADP implementation rate dips to 5-year low in early estimate

Dhaka, July 11 (New Age): The government’s development expenditure in the immediate past financial year 2013-2014 dropped to 86 per cent, which was lowest in past five years, showed initial official estimates. The implementation of downsized-revised annual development programme was 96 per cent in the FY 2012-2013. The ADP implementation was 85.5 per cent in FY 2008-2009 which was lowest since last year. The planning minister, AHM Mustafa Kamal, on Thursday told reporters that the initial estimate showed that the implementation of downsized-revised ADP in the immediate past FY14 was 86 per cent. ‘The rate might increase as the spending of some ministries is yet to be included in the calculation,’ he told reporters at a briefing at the NEC conference room in the capital. Planning ministry officials said the political instability in the first half of the fiscal year and slow disbursement of local and foreign funds were the main reasons for such low ADP implementation rate. They said the government tried to speed up the implantation in the last few months which somewhat lifted the progress as the rate was 67 per cent in May. The National Economic Council in April downsized the ADP to Tk 60,000 crore from the original outlay of Tk 65,870 crore following the sluggish implementation. The ADP implementation rate was on upward trend between FY 2009-10 and FY 2012-13 before coming down the last fiscal year. The data showed the overall implementation progress rate was 93 per cent in FY2011-12, 92 per cent in 2010-11, 91 per cent in 2009-10 and 86 per cent in 2008-09. Bangladesh Institute of Development Studies research director Zaid Bakht also said that political instability affected the implantation in 2013-14. He said that although the implementation rate declined the value of spending might had increased in the year.

Bangladesh: Export earnings cross b in FY14 riding on RMG

Dhaka, July 11 (New Age): Country’s export earnings in the just concluded financial year 2013-14 stood at $30.17 billion, $323.2 million short of the government-set target, showed the Export Promotion Bureau data released on Thursday.
The year on year export earnings growth registered an 11.65-per cent riding on the moderate growth of readymade garment export by 13.83 per cent.
Experts said that the export earnings in the just concluded financial year fell by 1.06 per cent from the target of $30.50 billion as the earnings in June registered a poor growth of 3.50 per cent.
Terming the export earnings growth in June as uncomfortable, Policy Research Institute executive director Ahsan H Mansur told New Age that the overall export earnings growth was satisfactory.
‘The growth rate in June is uncomfortable but its not deep concern. We will have to find out the reason of poor growth in the month and to take step for next months,’ he said.
The export earnings in June totalled $2.70 billion which is 8.65 per cent lower than the government-set target of $3.06 billion.
‘Though the country fail to achieve its target of export earnings, the 11.65 per cent growth amid political unrest and tragic incident in the garment sector is satisfactory,’ Bangladesh Institute of Development Studies research director Zaid Bakth told New Age.
He said that the export growth in the last two months of the FY14 witnessed a slowdown compared with that in the first 10 months of the fiscal year as the export earnings growth in non-RMG products was continuing to show a decreasing trend.
Zaid said that the export earnings fell 1.06 cent short of target due to political instability.
According to the EPB data the earnings from RMG that included woven and knitwear increased by 13.83 per cent to $24.49 billion in the FY14 from $21.51 billion in the FY13.
Knitwear export grew by 15.02 per cent in the FY14 to $12.04 billion from 10.47 billion in the FY13.
The export of woven garments grew by 12.70 per cent to $12.44 billion in the FY14 from $11.03 billion in the FY13.
The export of woven garments surpassed its target by 1.03 per cent as the export target was $10.92 billion in the FY13.
Frozen foods export grew by 17.35 per cent to $638.19 million in the FY14 from $543.84 million in the FY13.
Leather export grew by 26.47 per cent to $505.54 million in the FY14 from $399.73 million in the FY13 while the footwear export totalled $550.11 million with a growth of 31.19 per cent.
The export earnings from agricultural products totalled $615.08 million with a 14.81-per cent growth.
Home textile export grew by 0.13 per cent to $792.53 million in the FY14 from $791.52 million in the FY13.
The export earnings from leather product amounted to $240.09 million with a 48.55-per cent growth.
The export of jute and jute products fell by 20.00 per cent to $824.49 million in the FY14 from $1.03 billion in the FY13.
The export earnings from engineering products including iron steel, copper wire, stainless steel ware, engineering equipment, electric products and bicycle amounted to $366.63 million with a 0.23-per cent negative growth.

Bangladesh: NBR gives awards to 122 top VAT payers

Dhaka, July 11 (New Age): The National Board of Revenue on Thursday awarded 122 business organisations for paying highest value-added tax to the government exchequer at the national level and at the districts level in the financial year 2012-2013.
Of them, nine firms and businesses got national VAT award while 113 companies and businesses received district VAT award under three categories — production, services and business.
The revenue board and its field offices on the day at different programmes across the country honoured the firms and businesses with crests and certificates for collecting VAT from the consumers and depositing to the government exchequer in the highest amount in the year at the national and district level.
A VAT Week organised by the tax administration also began on the day and will continue till July 16.
The NBR introduced the award three years ago to encourage industrialists and businesses to deposit more VAT to the government exchequer.
Commerce minister Tofail Ahmed handed over the crests and certificates to the nine highest VAT payers at national level and 27 VAT payers at district levels from Dhaka division at a programme organised by the NBR at the RAOWA Convention Hall in the city.
NBR commissioners’ offices across the country handed over the awards to the remaining 86 recipients.
Rashidpur Condensate Fractionation Plant (Habiganj), RFL Plastics Limited (Narsingdi) and Huawei Technologies BD Ltd (Dhaka) secured the top positions at the national level under production, services and business categories respectively.
The other six business organisations which have got the awards as the highest VAT payers at the national level are Fenchuganj Gas
Field Project Ltd (Moulvibazar), Bangladesh Petroleum Exploration and Production Ltd (Dhaka), TUV SUD Bangladesh Pvt Ltd (Dhaka), National Television Ltd (Dhaka), MM Ispahani (sales and marketing division-Chittagong) and BRAC Aarong (Dhaka).
At the award giving programme, business leaders brought allegations against VAT officials for harassing them during the VAT collection process.
‘VAT officials increase the number of their visits to the business houses in the month of Ramadan when businessmen see an increased volume of business. At that time VAT officials seize business-related documents of the houses,’ Dhaka Mohanagar Dokan Malik Samity president Tawfique Hasan said.
He said that tax officials harassed small traders more.
Bangladesh Restaurant Owners’ Association secretary general Mezaul Karim Sarker Robin said that most of the time consumers denied to pay VAT with bills at restaurants.
He sought remedy from the NBR saying that such kind of harassment hampered the regular business activities of business houses.
ASM Mainuddin Monem of award receiving AM Auto Bricks from Munshiganj said that there was lack of transparency and honesty of NBR officials in tax collecting process.
So the NBR should make the VAT payment procedures easy, he said.
Akhil Dutta, general manager of Techno Drugs Ltd that received the award in production category in Narshindi, said that basically firms and businesses did not pay VAT rather they collect it from the consumers and deposit to the government exchequer.
So, there is nothing to face harassment unless firms and businesses evade collected VAT, he said.
Tofail Ahmed asked the revenue officials to be more careful in dealing with the businesses so that they remain satisfied and not become the victims of excessive power exercise by taxmen.
Economic affairs adviser to the prime minister Mashiur Rahman asked the businessmen to keep business records properly for paying tax accurately.
He requested the businessmen for paying VAT in increased amount as the government needs more fund for infrastructural and socio-economic development of the country.
NBR acting chairman Farid Uddin assured that he would instruct the taxmen for not harassing taxpayers.
State minister for finance MA Mannan, NBR member Jahangir Hossain, FBCCI first vice-president Monowara Hakim Ali, director Abdur Razzaque, spoke at the programme, among others.

Full list of VAT award winners at district level
Highest VAT payers at districts level under production, services and business categories are:
Kazi Enterprises Ltd (Savar), Persona Hair and Beauty Ltd (Dhanmondi) and Aarong (Uttara) in Dhaka, A M Auto Bricks, Padma Resort and City Corner in Munshiganj, Partex Paper Mills Ltd, Partex Furniture Industry Ltd and RH Trading in Narayanganj, Techno Drugs Ltd, Dream Holiday Ltd and Kalachand Das in Narsingdi, Radiant Pharma Ltd, BRAC Centre for Development Management and Gallery Apex in Gazipur, Akij Ceramics Ltd and Hotel Amir International in Mymensingh, Raz Hotel & Restaurant and Penta Trading Ltd in Manikganj, Masafi Bread and Biscuit Industries Ltd, Elenga Resorts and Jamuna Traders in Tangail, Hemas Consumer Brands Ltd and Natun Kuri Coaching Centre in Jamalpur, Hira Soap Factory, Goyanath Mistanna Bhandar and Shilpee Enterprise in Netrokona, The Consolidated Tea and Lands Co. Bangladesh Ltd, K C J and Associated Ltd and A M Channel Ltd in Chittagong, BFIDC Lumber Processing Complex in Rangamati, A M Channel Ltd in Comilla, Abul Khair Match Factory Ltd, Banoful and Co. and Hazi Enterprise in Feni, Globe Biscuit and Dairy Milk Ltd, Amania Hotel and Restaurant and Shulov Bitan in Noakhali, Nahar Trading in Chandpur, Ashuganj Fertilizer and Chemical Company Ltd and Café Abdullah in Brahmanbaria.
Nitol Motors Ltd and Paradise Cables Ltd in Rangpur, Akij Bidi Factory Ltd in Lalmonirhat, Mirza Oven Bag Pvt Ltd and Moni Enterprise in Dinajpur, Glory Ceramics Ltd in Nilphamari, Imroze Traders in Thakurgaon, SM Cable Network in Panchagarh, Nibaron Chandra Saha in Gaibandha, Resco Biscuit and Bread Factory, Green Line Paribahan and Lafarge Surma Cement Ltd in Jessore, BRB Cables Industry Ltd in Kushtia,  Bagat Raj Kumar Mistanna Bhandar in Faridpur, Shahabaz Tourism in Narail, Islam Store in Meherpur, Messers Kazi Sayed Ali in Gopalganj, Khadim Ceramics Ltd, Perfetti Van Melle and Green Line Paribahan in Sylhet, RAK Paints Pvt Ltd, Adi Gopal Mistanna Bhandar and D M Traders in Habiganj, Hingajiyo Plywood and Hotel Tea Town in Moulvibazar, Shah Kabir Lime, Latifa Community Centre and Abul Lais and Sons in Sunamganj, Sopura Silk Mills Ltd, Rajshahi Mistanna Bhandar and Omar Ali in Rajshahi, Azad Palp and Paper Mills, Parjatan Motel and The Consolidated Tea and Lands Co. BD Ltd in Bogra, Square Pharmaceuticals Ltd (PET Bottle Division), Banalata Sweets and Bakery and Akia Corporation in Pabna, Bangladesh Milk Producing Samabaya Samity, Dhanshiri Doi Ghar and Mama Bhagne Banijalaya in Sirajganj, Hossain Foods Industry, Student Coaching Home and Alfa Impex in Naogaon, Joypurhat Sugar Mills Ltd and Karatoa Courier Service in Joypurhat, Igloo Foods Ltd (mango pulp), Alauddin Hotel and Restaurant and Anyman Stores Distributor in Chapainawabganj, Kishowan Agro Products Ltd and Natore Town Press in Natore, Abdullah Battery Co. Pvt Ltd, Green Line Paribahan and A M Channel Ltd in Khulna, Dubai Bangladesh Cement Mills Ltd and Hotel Pashur in Bagerhat, Yeakin Polymer, Sonargaon Hotel and Restaurant and R K Trading in Satkhira, Mohammadi Electric Wares and Multi Products Ltd, Garden Inn Restaurant and Uttara Motors in Barisal, Hasan Rabbi Enterprise, Dulal Mistanna Bhandar and Akon Trading in Pirojpur, Aziz Gazi in Jhalakathi, AG Traders in Shariatpur, Messers Parjatan Holiday and Shafin Enterprise in Patuakhali, Haque Chemical Works, Hotel Taj and Restaurant in Barguna and A Rahman and Sons in Bhola.

Bangladesh: Inflation rises in FY14 on soaring food prices

Dhaka, July 11 (New Age): The average point-to-point inflation increased to 7.35 per cent in the immediate past financial year of 2013-14 from that of 6.78 per cent in the previous year due to soaring food prices. The Bangladesh Bureau of Statistics data released on Thursday showed that the average point-to-point food inflation witnessed a big jump reaching 8.56 per cent in FY2013-14 which was 5.22 per cent in the previous FY 2012-2013. The average inflation has been calculated based on monthly inflation rates. The average non-food inflation, however, declined to 5.55 per cent in the last FY compared with that of 9.17 per cent in the previous year. The government had set a target to contain point-to point inflation within 7 per cent in FY14. BBS officials said that hike in food prices was the main reason for the increase in the average yearly inflation in last fiscal year. They said political unrest during the first half of the financial year, which pushed up the transport costs, contributed to the increase in food items. Experts said that the government failed to meet its inflation target while other economic indicators were declining because of the mismatch between the fiscal and monetary policy along with the political instability. Bangladesh Institute of Development Studies research director Zaid Bakht said, ‘Political instability and some policy mismatch were the main reasons for which the government could not bring down inflation at expected level. Increasing inflation is affecting overall economy,’ he told New Age on Thursday. BBS data, however, showed that the point-to-point inflation dropped to 6.97 per cent in June from that of 7.48 per cent in May. The non-food inflation increased to 5.45 per cent in June from May’s 5.16 per cent. The food inflation declined to 8.00 per cent in June which was 9.09 per cent in May. ‘The decrease in the food inflation in June had a positive impact on the overall inflation in the month,’ BBS director general Golam Mostafa Kamal told reporters in a briefing on Thursday. 

Bangladesh: Investors still lack confidence amid political uncertainty: BB report

Dhaka, July 11 (New Age): The country’s business and investor community is still facing lack of confidence to expand business due to political uncertainty which put an adverse impact on the private sector credit growth, according to a Bangladesh Bank analysis report. Besides, depositors cannot regain full confidence over the banking system due to the Sonali Bank-Hallmark scam, the report said. The central bank’s evaluation came from its report titled ‘Analysis of Recent Slow-moving Credit Flows’ prepared by BB joint director Md Bayazid Sarker. The analysis report was placed on Thursday before a central bank internal meeting presided over by BB deputy governor SK Sur Chowdhury. BB executive director Mohammad Naushad Ali Chowdhury, SM Moniruzzaman and other senior officials attended the meeting at the central bank headquarters in the capital. The central bank report said borrowers and investors seemed not to be confident enough on overall investment climate for which scheduled banks were overcautious and felt less comfort to persuade fresh lending. ‘Lower demand for fund leads excess of loanable fund. Market forces seem unable to function with expectation due to have quasi base rate tagged with government saving certificate rates,’ the BB report said. All these causes ultimately result in slow-moving economic activities, but how long it will persist, that is the prime question now, according to the report. ‘The answer may not be simple. In fact, business and investor community are waiting, expecting and trying to be ensure that further political uncertainty will not come again shortly,’ the report said. Against the backdrop, the political uncertainty put an adverse impact on the private sector credit growth. The year-on-year credit growth rate in the private sector stood at 11.39 per cent in May against 11.86 per cent in April. The BB monetary programme for January-June 2014 set a target of 16.50 credit growth in the private sector. Due to the lower credit demand from the private and public sector, domestic credit market is facing excess of fund while foreign fund with low interest rate is being pumped into the economy although own foreign currency earns at below 2 per cent interest rate. The excess liquidity excluding the statutory liquidity ratio in the banking sector increased to Tk 1,20,675 crore as of March 31, 2014 from Tk 58,988 crore as of March 31, 2013. However, encouraging cheaper foreign fund may incur two types of risks — mass withdrawal risk for short-term borrowings and exchange rate risk for long-term borrowings. The private sector foreign loan stood at $466 crore as of March 31, 2014 against $227 crore as of March 31, 2013. The analysis report recommended that the BB should take regulatory measures only to keep faster move of credit flow in line with business cycle and economic growth. Foreign debt flow policy should be stringent more to avoid risks, the report recommended. A BB official, who attended the presentation meeting of the analysis report, told New Age that the country foreign exchange market would face a major risk if the investors repay their short-term foreign loans at a time that would also make unstable the taka-dollar exchange rates. The depositors are yet to regain full confidence over the banking system due to the Sonali Bank-Hallmark scam along with BASIC Bank loan scandal. The government and the BB should take immediate measures to help regain the confidence by increasing their monitoring on the banking sector.

Bangladesh: Stock bear run stretches to 8th day

Dhaka, July 11 (New Age): Dhaka stocks declined on Thursday, eighth trading session in a row, due to a decreased participation of the institutional investors after June closing. The key index of Dhaka Stock Exchange, DSEX, closed at 4,363.08 points, shedding 0.18 per cent or 7.91 points on Thursday, last trading session of the week. The turnover of the bourse increased to Tk 177.21 crore from Tk 157.49 crore in the previous trading session. The turnover of DSE had dropped to its nine-month low on Wednesday. As most of the institutional investors opted for a ‘go slow’ policy after half-yearly closing share sell-offs, the market became dull, market operators said. A section of retail investors also continued to refrain from trading in a fear of further fall in share prices, they said. They said it was also observed that on the day investors focused on some specific scrips and newly-listed companies. ‘The beat across the market continued sustaining and subsequently condensed the fear of further fall amid investors,’ IDLC Investments said in its daily market commentary. ‘Hence, the bourse passed a week of negativity in all sessions with tension and dullness amid clienteles,’ it said. ‘Meanwhile, news of increased export earnings by 11 per cent in FY 2013-14 and especially, garment’s export crossing FY target could not stimulate investors much,’ said IDLC. On the other hand, expectation on half-yearly and yearly earnings and upcoming MPS still hold back the market, it also said. DS30, the blue-chip index of the bourse, finished at 1,604.39 points, adding 0.03 per cent or 0.53 points. The Shariah index of DSE, DSES, increased by 0.18 per cent or 1.82 points, to close at 996.90 points. Of the 297 shares and mutual funds traded on the day, 99 advanced, 147 declined and 51 remained unchanged. Olympic Industries led the turnover leaders with its shares worth Tk 13.94 crore changing hands. Grameenphone, BEXIMCO, Heidelberg Cement, FAR Chemical Industries, Lafarge Surma Cement, Envoy Textiles, Square Pharmaceuticals, Appollo Ispat Complex and BRAC Bank were among the other turnover leaders. Bangladesh Industrial Finance Company increased the most as its share prices increased by 6.56 per cent, while Midas Financing lost the most, shedding 8.75 per cent.

Bangladesh: Samira appointed honorary consul of Iceland

Dhaka, July 11 (New Age): Samira Rahman Ali has recently been appointed the honorary consul of Iceland in Bangladesh, said a news release. Prior to her new assignment, she served the Spotlight Event Management (Bitopi Group) as director. Samira is involved with a charity named Utsho Bangladesh. She is the wife of Miran Ali, honorary consul of Slovakia and the managing director of the Bitopi Group.

Bangladesh: CID denied copy of 3 RAB officers’ statements

Dhaka, July 8 (New Age): The Criminal Investigation Department on Monday reported to the High Court that it was facing difficulties in investigating the Narayanganj seven-murder case as the judicial magistrates refused to give them copy of the confessional statements of three detained and removed Rapid Action Battalion officers. Judicial magistrates in Narayanganj earlier recorded statements of the three removed battalion officers Tareque Sayeed Mohammad, Arif Hossain and Masud Rana, reportedly confessing to their involvement in the murders. The judicial magistrates provided the Detective Branch of police, which was assigned to investigate the case, with the copy of the statements. The CID and a government team composed of four secretaries were also separately probing the abduction and killing of seven people, including Narayanganj city panel mayor Nazrul Islam, following a High Court order issued suo moto on May 5. The CID, in its progress report to the High Court, said that the judicial magistrate’s courts in Narayanganj had rejected its petition seeking copy of the confessional statements of the three. Without the copy of the confessional statements, the CID investigation officer could not crosscheck the statements the three removed officials made to them in police custody and to the magistrates, said CID chief Moklesur Rahman said in the report. The report said that process was underway to bring back prime suspect Noor Hossain from Kolkata where he was detained on charge of illegal entry. The Rapid Action Battalion, in its report, sought two more weeks complete the investigation. The battalion director general Mokhlesur Rahman, in the report, said that it had interrogated 80 battalion personnel and needed two more weeks to interrogate some others including Tareque Sayeed, Arif and Masud, who were in Dhaka Central Jail. The battalion, however, said that it was trying to probe if any battalion member was involved in the abduction of seven people on April 27 and their subsequent killings and the probe was now at final stage. The government probe committee will submit its report today, said deputy attorney general ASM Nazmul Haque, who received the reports of the CID and the battalion. All the reports would be submitted to the High Court bench of Justice Md Rezaul Haque and Justice Gobinda Chandra Tagore which earlier set July 11 to hear the matter. Narayanganj panel mayor Nazrul Islam and four of his associates and lawyer Chandan Kumar Sarkar and his driver were abducted on April 27 reportedly by battalion men and were found dead, afloat in the River Sitalakkhya, on April 30 and May 1. A case was filed by Nazrul’s family naming Noor Hossain as the principal accused. Noor fled to Kolkata and later was arrested by Indian police on June 14.

Bangladesh: Tareque interrogated at jail

Dhaka, July 8 (New Age): A high-powered committee inquiring into the killing of seven people in Narayanganj after abduction in April interrogated removed Rapid Action Battalion commanding officer Tareque Sayeed Mohammad at Dhaka Central Jail on Monday, officials said. The seven-member team led by public administration ministry additional secretary Shahjahan Ali Mollah interrogated Tareque for three hours in the office room of senior jail superintendent Farman Ali, the officials said. As Tareque denied his involvement in the incident, the probe team asked him what he and his team did after seven people were abducted by a group of armed people, allegedly members of the battalion, said the officials. Committee member Abul Kashem Md Mohiuddin said that they would analyse the statements of three removed battalion officials and decide whom else they would interrogate. The committee earlier recorded statements Masud Rana, who was retired from the navy as a lieutenant commander, and Arif Hossain, retired from army as a major, on July 1 and July 2. Asked whether ruling Awami League lawmaker AKM Shamim Osman would be interrogated soon, another committee member said that they were yet to finalise the date. ‘We need to interrogate many other people to get full picture of the incident,’ said the official. On April 27, seven people, including Narayanganj city panel mayor Nazrul Islam and senior lawyer Chandan Kumar Sarker, were abducted allegedly by battalion personnel from the Dhaka-Narayanganj link road. Their bodies were found floating in the Shitalakkhya river a couple of days later. Following an order from the High Court, the police arrested Tareque, Masud Rana and Arif on May 17 and May 18. The then RAB-11 chief Tareque Sayeed, also the son-in-law of cabinet member Mofazzal Hossain Chowdhury Maya, was sent into retirement from the army as a lieutenant colonel along with the then crime prevention company commander Masud and the then special company commander Arif on May 5. The British Broadcasting Corporation Bangla service reported that Indian authorities produced Noor Hossain, a prime accused in the case, before a judicial magistrate’s court in North 24 Parganas from the Dam Dam prison, where he was now detained in a trespassing case. A court official in India told media that the court after hearing the arguments sent Noor and two of his associates — Wahiduzzaman Salim and Khan Sumon of Narayanganj — back to jail for 14 days. Earlier on June 23, the judicial magistrate had sent the three to jail in connection with the case, on completion of their interrogation in police custody for eight days. During the hearing, Khan Sumon’s defence counsel appealed to the court to produce the immigration related documents claiming that Sumon used valid document to travel to Kalkata. The court asked the police to produce immigration related documents to the court by Friday. The families of the victims accused Noor and five others of the killings, with the assistance of RAB-11. The police on May 22 sought Interpol’s assistance to arrest Noor after he escaped the country following the murders. On June 14, the Indian National Investigation Unit and the Anti-Terrorism Squad arrested Noor along with the two at Indraprastha apartment complex at Koikhali. On July 2, the foreign minister, Abul Hassan Mahmood Ali, told parliament that India had agreed to extradite Noor. 

Bangladesh: Nine organisations to get national VAT award

Dhaka, July 8 (New Age): The National Board of Revenue is going to honour the highest value-added tax paying business organisations on Thursday for their outstanding contribution to the government exchequer by paying VAT in the financial year 2012-13, officials said. Nine VAT payers at the national level and 113 VAT payers at district levels will be awarded for the payment of VAT in the highest amount in the year under three categories—production, services and business. The revenue board introduced the award giving system three years ago to recognise the highest VAT payers and to encourage taxpayers for paying VAT, they said. Rashidpur Condensate Fractionation Plant (Habiganj), RFL Plastics Limited (Narsingdi) and Huawei Technologies BD Ltd (Dhaka) secured the top positions at national level under production, services and business categories respectively. Other six business organisations selected as the highest VAT payers at the national level are Fenchuganj Gas Field Project Ltd (Moulvibazar), Bangladesh Petroleum Exploration and Production Ltd (Dhaka), TUV SUD Bangladesh Pvt Ltd (Dhaka), National Television Ltd (Dhaka), MM Ispahani (sales and marketing division-Chittagong) and BRAC Aarong (Dhaka). Commerce minister Tofail Ahmed is expected to hand over crests and certificates to the selected VAT payers at national level at a function in Dhaka to be organised to observe National VAT Day-2014 for the fourth consecutive year. District level VAT payers will be awarded at the commissioners’ office of the NBR across the country. The NBR will also observe the National VAT week from July 10 to 16 across the country to create awareness among businesses to pay VAT. The NBR will arrange rallies and VAT awareness programmes at district levels as a part of observing the day and VAT week. Officials said that many leading and well-known business houses of the country had been left out of the list of the highest VAT payers due to disputes over VAT with the revenue board despite paying VAT at the highest amount. According to the award policy, the business houses having any disputes related to VAT are not considered for the award. According to the policy, the awardees will enjoy a number of privileges for one year from the issue date of the award, including priority while reserving seats in public transports and access to VIP lounges at the airports. Their spouses and children will also get priority while reserving cabins in the public hospitals and the awardees will get invitations to national programmes, including any citizens’ reception organised by the municipalities and city corporations. 

Bangladesh: Govt reconstitutes scam-hit BASIC Bank board

Dhaka, July 8 (New Age): The government on Monday appointed four directors to constitute the board of directors of the scam-hit Bangladesh Small Industries and Commerce Bank Limited. They newly appointed directors are : Hasan Mahmood FCA, former managing director of Bangladesh House Building Finance Corporation Raihana Anisa Yusuf Ali, banks and financial institutions division joint secretary Mamun Al Rashid and Dhaka University Professor of the department of Accounting and Information System Mujib Ahmed. A circular by the banks and financial institutions division said they were appointed to bring professionalism and dynamism into the bank’s management. Officials said two more directors will be appointed to the seven-member board of directors soon. Earlier, the government dissolved the board of directors of the BASIC Bank Limited after resignation of its controversial chairman Sheikh Abdul Hai Bachchu. It appointed Bangladesh Krishi Bank chairman Alauddin A Majid as the new chairman of BASIC Bank on Sunday and relieved him from the Krishi Bank. Alauddin A Majid held a meeting with the bank’s staff on Monday at its headquarter in the city. Briefing reporters after the meeting, he said that they would take initiative to recover the loans and improve the financial health of the bank. He noted that it would take time to see any improvement. There were anomalies worth more than Tk 4,500 crore in the transaction of the Basic Bank in recent years and the Bangladesh Bank asked the finance ministry to dissolve the BASIC Bank board of directors a couple of months ago. Loan scams in the BASIC Bank – a specialised bank once touted as one of the best-run public sector banks – was first detected in November 2012. Abdul Hai Bachchu, who was appointed chairman in 2009, was rewarded with reappointment in 2012. In June, the BB fired BASIC Bank managing director Kazi Faqurul Islam for his involvement in the loan scam. The default loans of BASIC Bank soared to Tk 2,557 crore last March from Tk 1,417 crore in February. Alauddin A Majid said, ‘I have already asked the senior management to provide data and information about the latest financial situation of the bank. After getting the data, I will take decision what type of strategy will be taken to improve the bank’s financial health’. He said that he had earlier gathered experience as managing director of the Basic Bank and that knowledge would help him to improve the bank’s health. He said that he had already asked the senior officials of BASIC Bank not to play ‘blame game’ about the irregularities. He said, ‘I will not allow the external interference on the activities of the board of directors and the management. The board and the management will take final decision about the bank’s operation.’ He said that the board would take decision in the quickest possible time to appoint a new managing director and chief executive officer for the bank. BASIC Bank acting managing director Fazlus Sobhan, deputy managing director Kanak Kumar Purkayastha and other senior officials of the bank attended the briefing.

Bangladesh: Banks allowed to appoint audit firms not listed by BB

Dhaka, July 8 (New Age): Bangladesh Bank on Monday said scheduled banks would be able to appoint audit firms beside the firms assigned by the central bank so that exporters could get cash incentives in the shortest possible time against their export items. The BB issued a circular to the authorised dealer branches of all banks in this regard saying that they (banks) would have to take approval from the central bank to appoint new audit firms. According to the central bank rules, banks have to conduct audit on the cash incentive cases of the exporters before applying for the incentive to the government. Banks have to conduct the audit with the firms approved by the central bank. A BB official told New Age on Monday that some banks usually made delay in accomplishing the procedures of cash incentive resulting that the exporters failed to get the incentive in due time. Against the backdrop, the central bank has taken initiative to allow banks to appoint audit firms beside the assigned ones, he said. The government gives cash incentives of 5 per cent-20 per cent to the exporters in 14 sectors including textile, shrimp, potatoes, meat and ship.

Bangladesh: Tofail terms US Congressmen’s letter indecent

Dhaka, July 8 (New Age): Six US Congressmen, who last week wrote a letter to prime minister Sheikh Hasina expressing concerns over the alleged intimidation of labour union in Bangladesh, will be invited soon to see for themselves the ‘improved’ labour rights situation, said commerce minister Tofail Ahmed on Monday. He said the letter to be sent to the congressmen will also elaborate how the transformation in the country’s apparel sector is taking place to benefit the workers in the RMG sector after the industrial disaster of Rana Plaza. Tofail made the comments after a meeting with the US ambassador in Dhaka Dan W Mozena at his secretariat office. He said the letter sent by six Congressmen was ‘indecent’, given the ‘satisfactory’ improvement prevailing in the apparel sector involving its workers and labour leaders. ‘The letter is indecent and political’, Tofail told reporters. The commerce minister said based on false information provided by IndustriAll, the US Congressmen had raised their concern. Six US congressmen on June 30 expressed serious concern over an increased intimidation and harassment of labour activists, while Bangladesh is working to restore the Generalised System of Preferences facility to the US market. The Congressmen — George Miller, Sander M Levin, Grace Meng, Eliot L Engel, Joseph Crowley and Janice D Schakowsky — expressed their concern in a letter sent to Prime Minister Sheikh Hasina. In June last year, the US suspended Bangladesh’s trade benefits under the GSP, citing the country’s failure in ensuring proper worker rights. The Congressmen issued warning against Bangladesh following recent comments on labour rights and workers’ freedom of association by Tofail Ahmed and Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association, sources said. The letter reads : ‘We are pleased to see the government take some initial steps in response to the GSP action plan, and we welcome the increase in the registration of labour unions along with the other changes that have been made to improve working conditions in the garment export industry. ‘In particular, as union registrations have increased, we have also seen an increase in intimidation and harassment of labour activists. This is a serious concern to the United States government, including the US Congress.’ They urged Hasina to intervene as the Congressmen said they will not tolerate this kind of intimidation and violence. Tofail said the IndustriAll after sending letter to US Congressmen seeking remedy against the so-called labour intimidation in the apparel sector now denies having made such communication with US authorities. He said the government had registered over 150 labour unions in the garment sector in the last 18 months. ‘The registration of unions is the testimony that the government is positive towards trade union activities in the industrial sector,’ Tofail told the reporters. Talking to reporters, ambassador Mozena said unfair labour practices, particularly crackdown on labour activists, are not acceptable and ‘must stop immediately.’ 

Review committee suspends operation of a unit partially

Dhaka, July 8 (New Age): The government-set review committee on Monday suspended operation in an area of the five-storey building that houses Clifton Cotton Mills Ltd in Chittagong because of safety concern and suggested that factory authorities should manage load in other areas of the building. The review committee’s move came after the inspection teams of North American retailers’ group Alliance had detected serious structural faults in the factory building and suggested the review committee comprised of representatives from the government, Accord, Alliance, BUET, BGMEA and BKMEA immediate evacuation from the building. The experts of the review committee on Monday visited the factory and found that the factor of safety of edge columns along the diagonal site was critical. The team also found undocumented cantilevers on three sides of the buildings and as-built drawing did not match with the actual structure. ‘Operations in the building may continue but the live load during the operations should not exceed 20 pound-force per square feet and all storage load should be removed from the floors except the ground floor,’ Syed Ahmed, inspector general of the Department of Inspection for Factories and Establishment, told New Age on Monday. The review committee asked the factory authorities to keep the area of one bay from the diagonal side out of use for safety, he said. Syed, also the chairperson of the review committee, said that they recommended conducting detail engineering assessment within six weeks to find out the condition of stressed columns. Permanent remedial measures will be taken depending on the findings of the detail engineering assessment and if the factory authorities fail to submit the report within the stipulated time upper two floors of the building will be evacuated, another review panel member said. The review committee team today will visit a building of Fakir Apparels Limited in Narayanganj where the teams of European retailers’ group Accord detected faults. After the Rana Plaza building collapse on April 24 last year that killed more than 1,100 workers, mostly women garment workers, North American apparel companies, retailers and brands formed Alliance for Bangladesh Worker Safety and European Union retailers formed Accord on Fire and Building Safety to improve safety in Bangladeshi RMG factories.

Bangladesh: 3 mobile operators lodge complaints against Teletalk with BTRC

Dhaka, July 8 (New Age): Three private mobile phone companies have lodged a complaint with the telecom regulator that the use of state-run Teletalk’s SIM cards has increased rapidly for illegal voice over internet protocol business. Grameenphone, Banglalink and Robi in a joint letter to the Bangladesh Telecommunication Regulatory Commission last week said that Teletalk’s SIMs were being used for illegal VoIP, causing revenue losses to the stakeholders, said BTRC officials. The three operators in separate analyses to the BTRC for April-June period showed that the trend of Teletalk SIM use for illegal VoIP was higher. The letter also said the SIM Box Detection System, a system for tracking illegal VoIP, detected huge number of Teletalk SIMs compared with others. The data showed in May 28-June 27, the SIM Box Detection System found 38,613 VoIP SIMs of Teletalk while the numbers were 6,080 for Airtel, 1,217 for Robi, 511 for Banglalink and 472 for GP. Operators in a calculation showed that Average Call Duration of Teletalk for international call was much higher than any other operator. The ACD of Teletalk ranged between 4.4 minutes and 5.48 minutes whereas the ACD of other operators was 1.3-2.7 minutes. ‘This higher ACD represents Teletalk’s involvement in terminating international calls illegally,’ claimed the letter. ‘We would now request the BTRC to take necessary initiatives to implement self-regulation process at Teletalk network,’ said the letter which was signed by the chief executive officers of the three companies. Asked about the issue, Teletalk acting managing director Gias Uddin Ahmed told New Age that he was not aware of such a letter. ‘I know nothing like this,’ he told New Age over phone on Monday. Gias said that he could not immediately give the details of call termination of Teletalk.