Persistent losses at Karnaphuli Paper Mills Ltd (KPM) lie with mismanagement at the mill and lack of coordination of its authorities with the industries ministry and BCIC (Bangladesh Chemical Industries Corporation).

RAM Obaidul Muktadir Chowdhury, chairman of parliamentary standing committee on Ministry of Hill Tracts, made the observation yesterday after visiting KPM, the lone state-owned paper mill.

Briefing journalists on mill premises, he said the factory is currently incurring a loss of Tk 1 crore to Tk 1.5 crore each month, which was even higher at the beginning of the year.

When members of the standing committee were visiting the factory, workers complained that several factory units, including the paper transforming unit, had been deliberately kept dysfunctional for long. Those were only made operational ahead of the committee's visit.

Asked about the allegation, the committee chairman said the factory authorities sometimes may take some measures to curb losses and workers might not take the decision well.

“As this is my first visit, I don't know the details. So, I cannot comment [on the issue] further," Obaidul said, adding, "KPM is dead. We are here to revive it with a new approach."

Lawmaker Ushatan Talukder, a member of the standing committee; Sahin Kamal, a director of BCIC; and MM Abdul Qader, MD of KPM, were present at the briefing.