At a recent meeting of the advisory group tasked with supervising the issue, the government decided to provide alternative job options for workers laid off from 16 Beximco Group garment manufacturers in the Gazipur Industrial Park.
The clothing factories are up for sale. In order to do this, the government would coordinate with the Bangladesh Economic Zones Authority (Beza), the Bangladesh Export Processing Zones Authority (Bepza), and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), according to the minutes of the meeting. Beximco said in mid-December of last year that it had closed 16 plants and laid off almost 40,000 people due to a lack of orders and financial backing after Sheikh Hasina’s administration was overthrown in August.
The committee determined that banks would auction off the defaulting firms, which obtained loans by mortgaging assets, through the Money Loan Court out of the 16 Beximco factories that the government had selected for sale. Entities without bank mortgages may satisfy their liabilities by selling their assets in accordance with conventional processes. The advisory group reviewed the commercial and labor circumstances of the enterprises in the Beximco Group during its meeting on January 5.
The purpose of the meeting was to discuss in detail how and by what means the industrial entities at Beximco Industrial Park could be sold, as well as how to provide the workers with alternative employment opportunities. The finance adviser, home affairs adviser, industry adviser, trade adviser, and attorney general were among those present at the meeting, which was presided over by Labour Adviser M Sakhawat Hossain. At the meeting, Attorney General Md Asaduzzaman said, “It is essential to know the actual number of workers in these companies, their assets and liabilities, details of mortgaged assets, bank loans, and so on.
The advisory committee has asked for comprehensive reports on the companies’ assets, liabilities, mortgaged assets with the relevant banks, ongoing business, and revenue. “For companies whose assets are mortgaged with banks, the respective banks can directly sell them through the Money Loan Court. Other companies can take steps to sell their assets or companies through standard procedures.”
Additionally, the committee has sought opinions on how the assets of the companies can be transferred according to their articles of association.
Additionally, it has directed Beximco’s accounting and human resources division to submit “an accurate” list of all employees working at the Beximco Industrial Park. Janata Bank paid the employees of Beximco Industrial Park one month’s past due salaries on December 15. The committee had previously met on December 15th. The managing director of Janata Bank said during the meeting that the bank’s board had authorized funding for an extra two months’ salary.
The government would not be able to offer any further financial relief beyond the three months’ past due salaries for Beximco’s employees, according to Finance Advisor Dr. Salehuddin Ahmed. “Beximco must determine whether to shut down the business if it is unable to continue operating. If not, Beximco will be held accountable for the resulting circumstance,” he stated.
Osman Kaiser Chowdhury, the managing director of Beximco Industrial Park, indicated during the meeting that the firms at the park were in default and could not continue to function since there were no orders. “In this situation, Beximco authorities must lay off or close the companies to control the law and order situation,” he stated.
The Bangladesh Securities and Exchange Commission previously nominated independent directors to the boards of Beximco Limited, Beximco Pharma, and Shinepukur Ceramics, three listed Beximco Group firms, in accordance with the committee’s recommendations.
Source: The Business Standard
