Haque Specialized Group's News

CHITTAGONG, Aug 6: Chairman of Khan Jahan Ali Ltd Nur Mohammad, who is now on bail in a cocaine smuggling case, has filed a money suit worth Tk one billion (100 crore) in 3rd Joint District Judge Court of Chittagong. The case was filed against Golam Mostafa Sohel of Khulshi in port-city, Fazlur Rahman of Faridganj in Chandpur, Md Bakul Meah of Roynagar in Moulavibazar, PIL (Bangladesh) Ltd, local agent of MV Thorstream, Cosco Bangladesh Shipping Lines Ltd, Import Export Elvaiven SRL of Bolivia, Cosco Containers Lines Co Ltd of Shanghai in China, South Freight Logistics of Uruguay, Carblos Correa Menestrina of Uruguay and MV Thorstream represented by its local agent. Court sources said the judge has issued summons for the parties concerned to appear in the court on October 8 on the date of hearing in the compensation suit. They also said the exporting firm and the defendants shipped cocaine under the cover of sunflower crude edible oil in June 2015. Two drums, out of imported 107 drums of oil, had cocaine, which was seized by Customs Intelligence officials. Nur Mohammad in his suit claimed that he was not involved with import of the said sunflower oil consignment. But he was implicated in the case through conspiracy of the defendants. He also said he neither issued any letter of credit for the same and nor was accused in the FIR (first information report) submitted by police. The police, after investigating the case, said in their report that they got no evidence of his involvement in the said smuggling. As the court rejected the police investigation, it ordered further inquiry into the case by Rapid Action Battalion (RAB), which implicated Nur Mohammed. He was arrested, but came out on bail, recently issued by High Court. pankajdastider@gmail.com....

Published at: 2017-08-07 00:00:04

The government formed Sunday a nine-member panel of deputy managing directors to be appointed managing directors of different state-owned banks and financial institutions, sources said. A meeting chaired by finance minister AMA Muhith at his secretariat office handpicked the DMDs into the panel dropping two names from a draft list. "We have dropped two names from the draft list after scrutinising their performance and previous records," a top official of the ministry of finance told the FE, wishing not to be quoted by name. He said the two deputy managing directors were allegedly involved in loan scams, and one of them was in jail in a case filed by the Anti-Corruption Commission. So, their names were dropped. In the future these deputy managing directors will be appointed MDs (managing directors) when the top executive post of the banks and FIs falls vacant.   The step is seen as a likely prelude to top-level changes in the public-sector banks and financial institutions.       Central bank governor Fazle Kabir, finance division secretary Hedayetullah Al Mamoon, and financial institutions division secretary Eunusur Rahman were among others present at the meeting.     syful-islam@outlook.com....

Published at: 2017-08-07 00:00:04

Corruption, bureaucratic inefficiencies and lack of transparency are, among others, the major impediments in attracting foreign direct investment (FDI) in Bangladesh, according to a recent report of USTR. The Office of the United States Trade Representative (USTR) in its report - "2017 National Trade Estimate Report on Foreign Trade Barriers" - also identified extortion of money from businesses by individuals claiming political backing as another barrier for trade and investment in the country. "Bureaucratic inefficiencies often discourage investment in Bangladesh," the report said. Overlapping administrative procedures and lack of transparency in regulatory and administrative systems can frustrate investors seeking to undertake projects in the country. Besides, frequent transfers of top- and mid-level officials in various ministries, directorates and departments are disruptive and prevent timely implementation of both strategic reform initiatives and routine duties, it added. The US and other international companies are concerned over arbitrary reopening of decades-old tax cases, particularly targeting or involving multinational companies and cumbersome process of outbound transfers from Bangladesh. "Applications to repatriate profits or dividends can be held for additional information gathering or otherwise delayed, if tax disputes arise," the report further said. Citing the government officials concerned, it added that allowing even limited outward transfers would lead to a flood of capital from Bangladesh. Other impediments to doing business in the country include frequent transportation blockades called by political parties, which can both keep workers away and block deliveries, resulting in productivity losses, the USTR report mentioned.   Regarding widespread disputes over land, the report, citing examples, explained that sellers, fraudulently claiming ownership, transferred land to good faith purchasers, while the actual owners were living outside of Bangladesh. In other instances, US-Bangladeshi dual citizens purchased land from legitimate owners only to have third parties make fraudulent claims of title to extort settlement compensation. "Likewise, corruption remains a serious impediment to investment in Bangladesh. While the government has established legislation to combat bribery, embezzlement and other forms of corruption, enforcement is inconsistent." Regarding public procurement, the report noted that the government of Bangladesh publicly subscribed to principles of international competitive bidding, but charges of corruption were common. Despite launching a national electronic government procurement portal the US companies raised concerns about use of outdated technical specifications, structuring of specifications to favour preferred bidders, and lack of overall transparency in public tenders, it added. "Concerns over safety of infrastructure and industrial relations practices have also discouraged greater investment and trade here," the USTR report said. Besides, lack of meaningful progress towards overall labour law reform, including in the country's export processing zones (EPZs), has also been a major point of concern for Bangladeshi and international stakeholders. Limited protections for labour organisations, weak enforcement of existing protections, and long delays in the labour court system have led to a deep distrust of sanctioned association and bargaining processes, and a reliance on unofficial or "wildcat" industrial actions, it noted. "Remediation of safety issues has progressed unevenly," it said, recalling the recent initiatives by Bangladesh government, global apparel buyers, and International Labour Organisation (ILO) that have led to improvements in factory safety standards and transparency over the past three years. munni_fe@yahoo.com....

Published at: 2017-08-07 00:00:04

Tenuous state institutions -- both public and political -- as reflected in the latest observations of the Supreme Court, stymie Bangladesh's desired socioeconomic development, analysts said.    According to economists and businesspeople, effective institutions are a prerequisite for ensuring good governance in society, as also for healthy growth in trade and economic activities in a country. Some economists also view that institutions have a vital role to play in enhancing competitiveness, productivity and investment. These, they say, should be treated as priorities for an economy at any stage of its development. According to them, all types of corrupt practice happen for a lack of strong institutions, including those having oversights function. The Supreme Court (SC) in its recent observations in a crucial verdict regretted that even after 46 years of independence, 'we have not been able to institutionalise any public institutions'. It also noted there are no checks and balances, no watchdog mechanisms at work. Thus, it said, people in position indulged 'in abuse of power and showing audacity of freehand exercise of power'. In the full verdict of the 16th Amendment to the Constitution, the SC also focused on the state of the judiciary. Even in this endless challenge, the judiciary is the only relatively independent organ of the state which, even though sinking, is striving to keep its nose above the water. "But judiciary too cannot survive long in this situation," it said "Instead of strengthening the judiciary, the executive is now trying to cripple it, and if it happens, there could be disastrous consequences," the top court said on a note of caution.   A number of economists viewed the institutions are a key to establishing long-term agenda, allowing for public-private collaboration in public interest, free from the vagaries of the legislative cycle. Dr Ahsan H Mansur, executive director at the Policy Research Institute (PRI), told the FE that judicial institutions are very much important and that when they do not function properly, domestic and foreign direct investment will not grow. "Suppose, one investor purchased a land for setting up a factory and when they face troubles in terms of possession of the land and building infrastructures, how the investment will take place." Confidence among the people, especially who want to invest, matters, according to the economist involved with policy research. He noted land management is poor and weak though it is very much important for confidence building among the people. Dr Mansur attached importance to the financial institutions like the central bank, Bangladesh Securities and Exchange Commission (BSEC) and Insurance Development & Regulatory Authority (IDRA). "Why we cannot take action against the loan defaulters -- this is absolutely because of lack of strong financial and political institutions," he said. The policy researcher said political institutions help ensure accountability and transparency in any society. He also pointed out that there had been no stern actions against those involved in creating bubbles on the stock market in 2010. Citing advanced economies, Dr Mansur said for those countries at the upper end of the development spectrum, institutions play an important role in maintaining economic health and keeping public-private collaboration on track. The fact is national institutional frameworks have had strong relationships with the economic development, he added. Dr MA Taslim, a professor at the Department of Economics at the University of Dhaka, told the FE that institutions are most important organs for a state. "They are like the structures of a building, and if they are weak, there are risks." He also said judicial institutions are very much important as those stand as a last resort. Dr Taslim said the foreign investors investigate about the stat of institutions before investment. "They (foreign investors) will explore whether the judicial system, bureaucracy and the red tape will block them or not," said the economics professor. "The Foreign direct investment (FDI) which remained much low in the country will not shine until or unless they are sanguine about strong institutions existing in the country," he added. Dr Mirza Azizul Islam, an adviser of caretaker government, told the FE that institutions and good governance are closely related and that without strong institutions any country cannot progress. He sees the low ratings of the country in different international rankings as an outcome of poor institutions. Poor institutions help raise the cost of doing business, and Bangladesh is one of the lowest-ranked countries in global rankings, he noted. He also noted that the poor quality of public works is an example of poor institutions in the country. "The poor institutions also breed cost-overrun and time-overrun in the public works …," the former finance adviser said. Talking to the FE, president of the country's apex trade body -- the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) -- Shafiul Islam Mohiuddin said the key public institutions have to be deferential to one another for the sake of country's socioeconomic development. "We can easily resolve many of our problems through amicable discussions," said the FBCCI leader in an oblique reference to the spats over the 16th amendment.    Jasimharoon@yahoo.com....

Published at: 2017-08-07 00:00:04

A number of global firms are queueing up to bag contracts for building three small floating, storage, re-gasification units (FSRUs) for imported LNG (liquefied natural gas), said officials. Some 14 firms including South Korea's Kogas, Belgium's Exmar and Singapore's Pavilion have submitted proposals to the Energy and Mineral Resources Division (EMRD) under the Ministry of Power, Energy and Mineral Resources (MPEMR), they said. State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) has already invited them to initiate negotiation to reach final deals, a senior RPGCL official told the FE Sunday. He said the initial negotiation would start from today (Monday).  The government recently decided to build three small FSRUs having the capacity of re-gasifying around 150-200 million cubic feet per day (mmcfd) equivalent of imported LNG to meet the country's mounting natural gas demand, a senior MPEMR official said. The FSRUs would be built at places adjacent to already-built platform and jetties in the Bay of Bengal and in the river Karnaphuli to facilitate anchorage of small LNG-carrying ships. These FSRUs would be in addition to the currently under-construction bigger-capacity FSRUs. One of the small FSRUs will be built at Sangu platform in the Bay of Bengal, said the official. Australia's oil and gas major Santos-operated offshore Sangu gas field used to supply natural gas through Sangu platform until closure of its operations in October, 2013. The remaining two FSRUs would be built adjacent to the jetties of state-owned Chittagong Urea Fertiliser Company Ltd (CUFL) and multinational-owned joint venture Karnaphuli Fertiliser Company Ltd (Kafco), he said. Bangladesh has planned to build these small FSRUs on the basis of unsolicited offers under the Speedy Supply of Power and Energy (Special Provision) Act, 2010. The law has a provision of immunity to those involved with the quick-fix remedies. "We want that the small FSRUs start work by August 2018," the official said. The government is set to start LNG imports early 2018 and is making concerted efforts to move forward with LNG import infrastructure. The country's first LNG import terminal, a 3.75 million tonne per year FSRU being developed by US-based Excelerate Energy, is expected to be commissioned in April, 2018 and its second, also with a similar capacity of 3.75 million tonne per year, being developed by Summit Group, is likely to be commissioned by end-2018. The contracts for both the FSRUs were also awarded under the special law. These FSRUs will be located at Moheshkhali Island in the Bay of Bengal, and ownership of the vessels will be transferred to Petrobangla after 15 years of operations. Petrobangla is also planning to set up at least two onshore LNG terminals, each with a capacity of 7.5 million tonne per year, by 2025. Bangladesh last month inked its first-ever deal to import LNG, a new fuel for the country, aimed at meeting the mounting demand for natural gas. Qatar's RasGas and Bangladesh's state-owned Petrobangla signed the much-expected initial deal on July 13 to import 2.5 million tonne per year of lean LNG for 15 years. Separately, Petrobangla signed a memorandum of understanding (MOU) with Switzerland-based AOT Energy to import LNG. Petrobangla's wholly-owned subsidiary -RPGCL - is currently receiving proposals from potential suppliers to select a pool of supplying firms for importing LNG from spot market. Azizjst@yahoo.com....

Published at: 2017-08-07 00:00:04