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.

Bangladesh: SBAC Bank gets new DMD

Dhaka, July 8 (New Age): Md Dilwar Hossain Bhuiyan has recently joined South Bangla Agriculture and Commerce Bank as deputy managing director. Previously he worked as DMD at Sonali Bank for about two years. Prior to Sonali Bank, Dilwar served as deputy general manager, general manager, DMD and managing director (additional charge) in four other banks, said a news release. Dilwar completed his MA in English with Honours from Dhaka University in 1979. He is also an MBA.