Govt releases Tk 525cr to clear Beximco workers’ dues
The government has provided Tk 525.46 crore to Beximco Group to clear the dues of its terminated workers.
Labour and Employment Secretary AHM Shafiquzzaman today handed over a cheque of Tk 525.46 crore to Beximco Group Managing Director Osman Kaiser Chowdhury to settle payments for workers and officials of 14 closed textile and garment units.
For all latest news, follow The Daily Star's Google News channel. The cheque handover ceremony took place at the labour ministry, according to a statement from the ministry.
The amount was disbursed by the finance division of the finance ministry after revising an earlier decision.
Initially, the plan was to provide Tk 325.46 crore from the finance division and Tk 200 crore from the labour ministry's central fund.
However, the full amount was ultimately allocated by the finance division, as the central fund consists of workers' contributions.
The fund will be provided to 31,669 workers and 1,565 officials, said M Sakhawat Hussain, labour and employment adviser, at a press conference last week.
The amount allocated is a loan, which Beximco Group must repay to the government after a certain period, Shafiquzzaman said over the phone.
The loan was granted to avert potential labour unrest in the garment sector ahead of Eid-ul-Fitr due to the termination and non-payment of salaries and benefits, he added.
The government will begin disbursing payments on March 9, covering salaries up to February.
The 14 closed units are Bangladesh Export Import Company (Head Office), 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, Urban Fashions, and RR Washing.
The four currently active Beximco units are Bangladesh Export Import Company (Factory), Beximco PPE, Escorp Apparels (Yellow Local Brand), and RR Washing (partially operational), according to Beximco Group data.
A total of 13 banks, including Bangladesh Bank, have provided over Tk 40,000 crore in loans to Beximco Group.
The group owes Tk 23,285 crore to Janata Bank, Tk 1,424 crore to Sonali Bank, Tk 987 crore to Rupali Bank, Tk 420 crore to Agrani Bank, Tk 333 crore to United Commercial Bank, and Tk 315 crore to National Bank.
It also owes Tk 938 crore to AB Bank, Tk 497 crore to Exim Bank, Tk 94 crore to Dutch-Bangla Bank, Tk 87 crore to the Bangladesh Infrastructure Finance Fund, Tk 78 crore to IFIC Bank, and Tk 61 crore to Global Islami Bank.
The government plans to shut the mills and factories before a committee decides on selling Beximco Group's shares and recovering the loans.
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