Beximco Group has received Tk 525.46 crore from the government to pay the outstanding debts of its fired employees. To settle wages for employees and officials of 14 closed textile and garment facilities. Labor and Employment Secretary AHM Shafiquzzaman gave Beximco Group Managing Director Osman Kaiser Chowdhury a check for Tk 525.46 crore today. According to a government statement the check handover ceremony was held at the labor ministry. Following a revision of an earlier decision the finance division of the finance ministry disbursed the sum.
At first, Tk 200 crore from the central fund of the labor ministry and Tk 325.46 crore from the finance division were to be provided. However, since the central fund is made up of employee contributions, the finance division finally distributed the entire sum. Last week at a news conference M Sakhawat Hussain announced that the cash would be given to 1,565 officials and 31,669 workers. Shafiquzzaman said over the phone that the sum allotted is a loan that Beximco Group is required to return to the government after a specific amount of time. He stated that the loan was given in order to prevent any labor unrest in the apparel industry before Eid ul Fitr as a result of terminations and nonpayment of salaries and benefits.
The government will start paying salaries through February is starting on March 9 . RR Washing, International Knitwear and Apparels, Crescent Fashion and Design, Esses Fashions, New Dacca Industries, Escorp Apparels, Bextex Garments, Yellow Apparels, ShinePukur Garments, Beximco Fashions, Prefix Fashions, Crescent Accessories, and Bangladesh Export Import Company (Head Office) are among the 14 closed units. According to Beximco Group statistics, the four Beximco units that are presently operating are RR Washing (partially operational), Escorp Apparels (Yellow Local Brand), Beximco PPE, and Bangladesh Export Import Company (Factory).
Beximco Group has received loans totaling more than Tk 40,000 crore from 13 institutions, including Bangladesh Bank. The group owes Tk 420 crore to Agrani Bank, Tk 333 crore to United Commercial Bank, Tk 315 crore to National Bank, Tk 23,285 crore to Janata Bank, Tk 1,424 crore to Sonali Bank, and Tk 987 crore to Rupali Bank. Additionally, it owes Tk 94 crore to Dutch-Bangla Bank, Tk 87 crore to the Bangladesh Infrastructure Finance Fund, Tk 78 crore to IFIC Bank, Tk 61 crore to Global Islami Bank, Tk 938 crore to AB Bank and Tk 497 crore to Exim Bank. Before a committee decides how to sell Beximco Group’s shares and recoup the loans the government intends to close the plants and mills.
Source: The Daily Star
