Grameen Uniqlo plans to open two new stores in Dhaka as part of its
plan to establish a nationwide chain across the country riding on warm
responses from local customers, it said yesterday.The move comes two months after Uniqlo, owned by Japan’s Fast Retailing
Co Ltd, became the first global fashion brand to open outlets in
Bangladesh.Since the launch of the first two stores in the capital in July, Uniqlo
has already attracted a popular following across Dhaka, and the latest
locations cater to the growing demand. The world’s fourth largest
clothing retailer will open the new stores in Banani and Nayapaltan.Tadahiro Yamaguchi, chief operating officer of Grameen Uniqlo, said: “We
are excited to have the opportunity to expand across Bangladesh. We
would like to thank the people of Bangladesh for the warm reception.”A social business launched in 2010, Grameen Uniqlo is a joint social
business venture between Fast Retailing and Grameen Healthcare Trust.Profits are re-invested in the business within Bangladesh, to grow the
network of stores.The venture aims to offer good quality comfortable and affordable
clothing, with the outlets selling 32 items for men and 10 for
women—shirts, trousers and sportswear—priced between Tk 190 to Tk 1,180
with Uniqlo’s signature theme “beauty in hyperpracticality”.Uniqlo produces the collection in Bangladesh using locally sourced
materials, providing highly practical items made by locals for locals.The expanding middle class, whose size doubled to 30 million in the last
one decade according to the World Bank, has helped the company launch
and expand its presence.Nearly $100 billion is spent on private consumption in Bangladesh every
year, according to the latest World Bank data, with non-essential items
such as fashion retail accounting for a growing proportion.“The economy is growing rapidly. There are 160 million people living in
Bangladesh. So, we found that we have a great opportunity to start a
retail business,” Yukihiro Nitta, chief executive of Grameen Uniqlo,
told BBC earlier.
Thursday, September 26, 2013
Regulator blocks 10 IGWs over unpaid dues
The telecom regulator yesterday blocked the services of 10 international
gateways (IGW) due to their unpaid revenues of around Tk 250 crore for
June.of the IGWs are: Apple Networks Ltd, 1 Asia Alliance, Ratul Telecom, Vision Tel, SM communication and Venus Telecom.The regulator can take legal action against any IGW if it does not pay
revenues in the next 60 days after the 115-day deadline for payments
expires, as per the licensing guideline.“We will try to realise the outstanding amounts, and if necessary, we
will cancel the licences,” said Giasuddin Ahmed, vice-chairman of
Bangladesh Telecommunication Regulatory Commission.The country has 29 IGWs, including the state-run Bangladesh Telecommunications Company Ltd.
DSE asked to probe abnormal price hike of low-cap firms
The stockmarket regulator yesterday asked the Dhaka Stock Exchange to
look into the abnormal price hike of some low-cap companies of late.The DSE will have to investigate the 12 firms that gained nearly 50
percent to 150 percent in the last 15 trading days, and submit a report
in 15 workdays, the regulator said in a statement.The companies that saw an unusual price hike in the last 15 trading days
are: Legacy Footwear, Desh Garments, BD Autocars, Rahima Food,
Information Services Network, Monno Jute Stafflers, Modern Dyeing and
Screen Printing, Anwar Galvanising, JMI Syringes and Medical Devices,
Hakkani Pulp, Intech Online, and Al-Haj Textile.A total of 12 companies gained in between 100 percent and 244 percent
from July 31 to September 17, three companies rose more than 90 percent
and 14 firms more than 50 percent, DSE data showed.The firms with capital ranging between Tk 40 lakh and Tk 31 crore saw an
abnormal price hike amid a slow mood in the market, which led investors
to buy shares at higher prices that may cause a massive loss in their
portfolios.The DSE has already suspended trading of two firms—CVO Petrochemical
Refinery, and Rahima Food—for an indefinite period as their prices were
rising abnormally.The regulator also gave merchant banks and stockbrokers six more months
to restructure their clients’ margin accounts, whose deposits drop below
150 percent of debit balance, according to the statement.The discretionary power will allow stockbrokers and merchant bankers to
make “buy-sell” decisions until March 2014 without referring to the
client for every transaction to recover the losses in those accounts.
Fourth instalment of $1b IMF loan likely in Nov
The government has fulfilled most of the IMF conditions to get the
fourth instalment of a $1 billion loan from the lender by November.This is the last instalment of the three-year loan, under an Extended
Credit Facility, in the current tenure of the present government. The
first instalment was disbursed in April 2012.A team of the International Monetary Fund has started reviewing the implementation status of the conditions from last Sunday.The team has already held meetings with the officials of Bangladesh Bank and the finance and other related ministries.Officials of the finance ministry and the central bank said they expect
to receive the fourth instalment — $140 million — by December.The major conditions for releasing the fourth instalment of the loan
were related to banking reforms, including those in the state-owned
banks.After a number of banking scams in 2012, the IMF wanted the government
to conduct a special diagnostic examination of four state banks,
focusing on their asset quality, liquidity management, and internal
audit and controls.A BB official said the examinations have already been carried out, and the banks were asked to address the key shortcomings.In line with another IMF condition, the central bank has framed a policy
on how it will rescue a bank if it becomes bankrupt or faces a serious
liquidity crisis.The policy was placed in the BB board meeting on Wednesday and will be
approved in the next meeting, the central bank official said.The IMF had also asked for limiting the banks’ exposure to the
stockmarket by amending the Banking Companies Act, which the government
has carried out.Another major condition of the lender was to contain the government’s
hard-term borrowing within the $3.2-billion ceiling by June 30 this
year.A finance ministry official said the amount is well within the limit and was $2.86 billion on June 30.However, the new ceiling for hard-term borrowing for next June could be
$4.5 billion, as the finance minister has called upon the lender to
increase the non-concessional debt ceiling to accommodate loan
guarantees for power projects.To minimise subsidies and wastages in some state enterprises, the
government has completed ‘efficiency audits’ into Bangladesh Petroleum
Corporation, Power Development Board, and Bangladesh Chemical Industries
Corporation, in line with another IMF condition.
Twin bourses on course to adopt new models
The Bangladesh Securities and Exchange Commission (BSEC) yesterday
approved the demutualisation schemes, an act which would transform the
two bourses from their current non-profit, co-operative state into
profit-oriented entities.“It’s a milestone in the history of Bangladesh’s stockmarket,” BSEC said
after giving approval to the schemes prepared by the Dhaka and
Chittagong stock exchanges. “It’s not only a way of separating the
bourses’ management from ownership; it will also bring transparency and
accountability to the market.”At present, the two bourses are collectively owned and run by the brokers who trade on them.Since the objective of a stock exchange and those of the brokers trading
on them are different, the vesting of ownership and managerial rights
with the brokers can often lead to a conflict of interests. In most
cases, it is the interest of the brokers that is preserved over the
interest of the wider investing public.Demutualisation, which would convert the bourses from mutual
organisations to corporate entities owned by shareholders, would check
this as it would separate the ownership and trading rights of the
brokers.The stockmarket regulator, however, made a few changes to the
demutualisation schemes proposed by the Dhaka and Chittagong stock
exchanges, with the major one being the cutback in the board size.The bourses proposed a 15-member board, but the BSEC sized it down to 13.The 13-member board would consist of seven independent directors, five
shareholder-directors, including one strategic investor, and the chief
executive officer, who would have voting rights.The independent directors will be selected based on the ‘fit and pro-
per’ criteria mentioned in the demutualisation scheme, which will be made public in seven days.
The tenure of each director and the chief executive officer will be for three years.Both the stock exchanges will have to create a post—chief regulatory officer—to oversee the regulatory matters.
Faruq Ahmad Siddiqi, a former chairman of BSEC, said the demutualisation will bring the expected results only if the existing stock exchange members mean it and act in line.“Otherwise, it will not be effective and not bring any good results to the market.”Over the next 30 days, the stock exchanges would adopt the approved schemes by modifying their respective Memorandum and Articles of Association at a general meeting.At the general meeting, the bourses will also reshuffle their existing boards to match the board size in the approved schemes.During the 30-day window, the dematerialised or electronic shares will be allotted to the stock exchange members, with 60 percent of the shares transferred to a block account to be kept for trading right entitlement certificate (TREC) holders, strategic investors and individuals.Primary shareholders, who will have 40 percent stakes, of the bourses will also get their TREC within this period.The newly-formed boards will hold their first meetings within 90 days from the date of demutualisation.
per’ criteria mentioned in the demutualisation scheme, which will be made public in seven days.
The tenure of each director and the chief executive officer will be for three years.Both the stock exchanges will have to create a post—chief regulatory officer—to oversee the regulatory matters.
Faruq Ahmad Siddiqi, a former chairman of BSEC, said the demutualisation will bring the expected results only if the existing stock exchange members mean it and act in line.“Otherwise, it will not be effective and not bring any good results to the market.”Over the next 30 days, the stock exchanges would adopt the approved schemes by modifying their respective Memorandum and Articles of Association at a general meeting.At the general meeting, the bourses will also reshuffle their existing boards to match the board size in the approved schemes.During the 30-day window, the dematerialised or electronic shares will be allotted to the stock exchange members, with 60 percent of the shares transferred to a block account to be kept for trading right entitlement certificate (TREC) holders, strategic investors and individuals.Primary shareholders, who will have 40 percent stakes, of the bourses will also get their TREC within this period.The newly-formed boards will hold their first meetings within 90 days from the date of demutualisation.
Long march starts for Khulna
The long march ‘Save the Sundarbans’ started from Jessore towards Khulna Friday morning on its way to Rampal in Bagerhat.After staying a night at Jessore town, more than one thousand protesters
started for Khulna city via Fultola, Doulatpur and Shalishpur upazilas
of Jessore around 10:00am, reports our correspondent travelling with the
long march.The protesters are likely to hold a rally at Khulna city later in the day, our correspondent added.Organised by the National Committee to Protect Oil, Gas, Mineral
Resources, Power and Ports, the long march was initiated for the
cancellation of the Rampal power plant project in Bagerhat, which is
just 14 kilometres off the world’s largest mangrove forest the
Sundarbans.Earlier on Thursday, the protesters held a rally at Madhukhali upazila
in Faridpur where Prof Anu Mohammad, member secretary of the committee,
said if the Sundarbans is destroyed, it will leave a negative impact on
the people of the southern region.“If there is no sign of life left, what we will do with the electricity,” he said.
Meanwhile, back in Dhaka several eminent personalities in a joint statement expressed their solidarity with the long march Thursday.After reaching Faridpur on Wednesday, the protesters stopped at Ambika Memorial Hall in the town.At a rally in Faridpur, the participants vowed to resist the government move to set up the coal-fired Rampal power plant near the wilderness.The long march, which is expected to reach Rampal on Saturday, will end with a rally at Digraj.More than 1,200 protesters set out on the long march from the capital’s Jatiya Press Club on Tuesday.When the oil gas protection body is carrying out the long march to save the Sundarbans, the government on Wednesday fixed October 22 for laying foundation stone of the power plant.Bangladesh and India had inked a deal on April 20 to set up a 1,320MW coal-fired power plant at Rampal.The project had drawn huge flak from environmentalists and eminent citizens, who say it would jeopardise the Sundarbans.
Meanwhile, back in Dhaka several eminent personalities in a joint statement expressed their solidarity with the long march Thursday.After reaching Faridpur on Wednesday, the protesters stopped at Ambika Memorial Hall in the town.At a rally in Faridpur, the participants vowed to resist the government move to set up the coal-fired Rampal power plant near the wilderness.The long march, which is expected to reach Rampal on Saturday, will end with a rally at Digraj.More than 1,200 protesters set out on the long march from the capital’s Jatiya Press Club on Tuesday.When the oil gas protection body is carrying out the long march to save the Sundarbans, the government on Wednesday fixed October 22 for laying foundation stone of the power plant.Bangladesh and India had inked a deal on April 20 to set up a 1,320MW coal-fired power plant at Rampal.The project had drawn huge flak from environmentalists and eminent citizens, who say it would jeopardise the Sundarbans.
Highlighting vigour and energy
Shahabuddin Ahmed is celebrated for his figurative propositions through
which he often exteriorizes drama of movement. The Bangladeshi
expatriate who has been living in Paris for over 35 years, is known to
the wider public for his impassioned and keen depiction of the spirit of
the Liberation War in 1971. Beginning his career in the early 1970s, a
point of history when a new generation of artists was struggling to make
the best out of the post-liberation era situation, he started to draw
attention as a painter given to intense emotion while exploring human
and animal forms. Connected to the concept of the Bengali national
identity, his signature trait is often animated by sweeps of brush
strokes and painterly contrivances leading to the illusionistic imagery.Shahabuddin’s solo painting exhibition begins tomorrow (September 28) at Gallery Chitrak in Dhanmondi.An artist who prefers working on large and middle sized canvases, often
tackling sizes according to the requirement of his larger-than-life
themes and style, a common thread that runs through most of his works
(oil paintings) has to do with the spirit of emancipation of the human
being.The created space – one that is conceived as the field of action for the
protagonists whom Shahabuddin portrays – is broad, so that it provides
for a large backdrop against which to enact his visual drama.Shahabuddin’s oeuvre at the Gallery Chitrak exhibition articulates the
valour of the Freedom Fighters by emphasising their muscularity and
robustness, as is his norm. Figures for him are means to infuse the
painterly space with a mythological sense; and he brings them into view
as instigators of freedom as they are made to traverse a vast, expansive
domain defying time and space. One can say the artist’s personal
desires, emotions, hopes, and aspirations are associated with that of
the Bengali masses, whose zeal centering the independence war is
unwavering.This time, the emergence of horses, Royal Bengal Tigers and bulls as
motifs signifying force and strength provides a respite for viewers
already familiar with his advancing human figures. The cluster of
paintings present the same Bengali will that seeks to revive the
forgotten ethos of the Liberation War.The portraits of Bangabandhu, Mahatma Gandhi and other legendary
personalities — the political giants he has been portraying since the
early1990s– are also part of the exhibition.The exhibition will continue till October 12.
National broadcasting policy
THE national broadcasting policy (NBP) is set to be placed for approval
at the cabinet next month. This is a matter of serious national
importance as it is a pointer as to how the flow of information is
maintained in democracy. As such, before taking a final shape, the draft
policy on broadcasting demands sufficient public debate to ensure that
it is time-befitting and meeting the need of all stakeholders, and
whether there is indeed need for a policy at all.We are not aware if the government has allowed such open discussion
among various stakeholders. In this context, the information minister’s
assurance that the NBP to be approved by the cabinet would ensure
desired development of mass media and protect public interest doesn’t
sound convincing.But what we see in actual practice is antithetical to what the
government is promising. For the public are still in the dark about what
the draft NBP ready for cabinet approval actually contains. They do not
know if it is going to curtail or increase media freedom.It would be ill-advised if the government pushes through the NBR in a
slapdash manner at the fag end of its present tenure. It has to be
ensured that the NBP does not impinge on the press freedom keeping an
eye on the fine line between the rights and obligations of the
stakeholders.So, to avoid the risk of creating another black law, the government must
invite open discussion among all stakeholders before sending the draft
broadcasting policy to the cabinet for approval.
ADP implementation dips
FOR the first time in recent memory, implementation of the annual
development plan (ADP) has gone down in an election year. Prior
experience shows that every elected government speeds up implementation
of projects, particularly priority ones, when a general election draws
near. Not this time round. We are alarmed to find that the highest rate
of implementation stands at a mere 15 per cent by local government,
while health and family welfare takes the cake for second lowest
implementation at 2 per cent.To put it more bluntly, of the 54 ministries in government, 22
implemented approximately 0 – 2 per cent of their allocations. Naturally
the slow pace with which some of the biggest projects in the power
sector are being implemented has become a major headache for
policymakers. Even more embarrassing is the fact that the Padma Bridge
project that received the third largest allocation in the budget has
managed to expend a mere 0.13 per cent of its allocation.We are distressed that infrastructure has taken such a bad hit. The
sorry state of roads and highways hardly need to be highlighted. Yet
when we find that the roads division has managed to implement only 5 per
cent of the development budget of one of the most crucial projects of
the country, i.e. the Dhaka-Chittagong four-lane, there is little left
to be said. The overall situation points to a reduced capacity of the
ministries to implement development programmes timely and that does not
admit of any excuse.
Backward looking owners of a forward looking industry
WE cannot support the vandalism that the workers of some garment
factories of Bangladesh have indulged in, in the last few days. For
several days now important highways have been blocked and hundreds of
cars, buses and trucks have been set on fire by wayward garment workers.However, BGMEA and others cannot avert the blame that the present spate
of violence has been triggered by their offer of Tk.600 pay raise to the
Wage Board which is trying to fix new wages for the RMG sector workers.While the owners are right in saying that vandalism will not get the
workers their pay rise and only negotiations will, yet it must be said
that the mindset revealed by the owners in the Tk.600 offer forced the
workers to conclude that without some bigger action their demands will
not be realised.It boggles the mind, and we have carried several pieces on it already,
is how such a pittance could have been offered in the first place. To
make it sound respectable BGMEA said they were offering a 20% raise.
Given an already low level of Tk.3,000, the 20% amounts to only Tk.600,
making for a total of Tk. 3,600. How can this be living wage for anybody
who has to pay for lodging, food, transport, medical and necessary
family expenses?We fully endorse the CPD recommendation that the starting wage for a RMG
sector worker should be Tk.6,560 to be increased to Tk. 8,200 on
completion of one year satisfactory service, which in dollar terms
amount to just about $ 100, making for a daily wage of around $3. We
consider such a minimum wage to be feasible, and a win-win proposition
for both sides.BGMEA’s position has always been that high wages will compromise our
competitiveness and thereby destroy the industry. This may have been
true at some point in the past. Now the reality is that it will be the
absence of a reasonable wage for the workers which will compromise our
competitiveness and destroy the industry.It is our view that BGMEA members are stuck in a time warp. They have
not evolved with time and are stuck in the thinking that labour is the
place where the squeeze has to be the maximum and everywhere else
expenses can be adjusted.It is now a proven fact, in Bangladesh as in everywhere else in the
world, that better pay for the workers inevitably results in better
profit for the owners. In Bangladesh, those garment factories which are
fully compliant with international standards of working condition and
those who pay higher salaries are among the more successful companies in
the country. It is they who are getting orders from abroad, it is they
who are growing faster than others and it is they who have the best
prospect for future growth.With such overwhelming evidence all around, it is incomprehensible that
BGMEA should have chosen the path of confrontation with the workers
instead of co-operation.As more and more workers take to the streets their discipline will
slacken and propensity to go for such demonstration will increase.
Therefore, it will be wise on the part of BGMEA to solve the existing
wage issue expeditiously so that workers are still able to trust the
owners rather than feel that they will always need to indulge in
indiscipline to gain their rights.What has amazed us further is the ‘discovery’ of “national and
international” conspiracy by BGMEA leaders, whose purpose, according to
them, is to instigate the workers in order to damage the image of our
RMG sector. They identified BBC and vernacular daily Prothom Alo as the
main culprits, as the former had broadcast a TV programme depicting the
miserable state of garment workers and the latter compared garment
workers’ salary with other sectors and pointed out that it was among the
lowest in the country.What amazes us further is that BGMEA leaders are all seasoned travellers
and, since almost all of them sell their products in the US or in
Europe, they are necessarily well versed in the practices of western and
other free and independent media. So how could they have called the BBC
and Prothom Alo reports as “conspiracies”? They could have termed them
“inaccurate,” “incomplete,” “one-sided,” “biased” and sent a “rejoinder”
or “clarification.”The mindset revealed in terming BBC, one of the most respected and
trusted names in international journalism, and Prothom Alo, by far the
biggest and trusted newspaper in the country, as “conspirators” is one
that is myopic, closed, intolerant of criticism, unwilling to accept
their own faults and unable to take responsibility for their own
shortcomings.For many years now we have been hearing BGMEA or their likes term every
criticism against them as “conspiracies.” Every time the workers
demonstrate for their rights, their pay, improvement of their working
conditions, it is termed as a “conspiracy.” If our garments owners had
accepted even a part of the criticism and acted on them, they would have
been in a far better situation than now. By terming criticisms as
false, they act like the proverbial ostrich burying its head in the sand
and thinking that the world can’t see them.Why do buyers have to insist about fire safety, about well constructed
factories, about fire exits and the like? Why can’t we do these things
on our own? I am sure many of the garments owners did and do. But there
are many others—in fact too many of them—who don’t. It is this
delinquent group that is bringing disrepute to the industry.We salute our garment factory owners for creating such a huge export
business for the country earning billions. They also deserve our praise
for creating such a huge employment market, and bringing about near
revolutionary changes in many aspects. But they must also acknowledge
that they pay only 0.8% tax when all other business houses pay 40%
corporate tax. This sector has been given many types of regulatory and
financial benefits precisely for the above mentioned benefits they
brought to the country.While we give them their due praise we must simultaneously point out
that the workers are their partners in creating their turnover, gross
income and finally the profit, which, judging by their houses, cars,
lifestyle, etc., have been considerable.There is no question of grudging their wealth as most of them have
earned it through hard work, but there definitely is the question of
paying reasonable wages for the very workers who help to create their
wealth.With the prospect of exponential growth in this sector, and with
Bangladesh poised for embarking on its growth trajectory, the BGMEA is
being extremely shortsighted in refusing to accept the stark and
fundamental reality that the wages being offered to the workers are not
acceptable.The continued unrest in the RMG sector, and we will not negate the
possibility that part of it could be politically instigated, will not do
the owners any good, as it will not do any good to the workers either.
We urge the owners to be the true forward looking captains of what is
definitely one of the most forward looking and prospective industry that
the country has at the moment.
Contempt of court law scrapped
The High Court yesterday declared “void and unconstitutional” the
contempt of court law that gives some protection to journalists and
government officials, saying the law curtails court’s constitutional
powers to deal with contempt cases.Provisions of the Contempt of Court Act-2013 are discriminatory since those give protection to a section of people, the HC said in a judgment.Every citizen is equal in the eye of law as per the constitution, it observed.The HC gave the verdict upon a writ petition filed by two Supreme Court
lawyers challenging the legality of eight provisions of the contempt of
court law, which exempted journalists and government officials from
contempt charges.The Jatiya Sangsad enacted the law on February 19 this year.Attorney General Mahbubey Alam told The Daily Star that the government
would soon file an appeal with the Supreme Court, seeking a stay on the
HC judgment.He, however, declined to elaborate on the matter.The judgment said provisions of the contempt of court law, which are
contradictory to articles 27, 108 and 112 of the constitution, have
curtailed the powers of the highest court of the country.The HC said the constitution provides that the SC and the HC possess
inherent power to summon anybody before them for committing contempt of
court, and the administration will act in aid of the courts.Article 27 of the constitution says, “All citizens are equal before law and are entitled to equal protection of law”.Citing a Supreme Court verdict of the 90s, the HC bench that gave the
judgment yesterday said the freedom of press is not unlimited as per the
law. A specific periphery should remain in place for fair and truthful
publications.It added the press is a big power, and the court takes help from the
press almost every day. The court does not want to limit the freedom of
press, but this freedom should not be unfettered.The bench said those who have no idea about law and court proceedings
should not be allowed to write whatever they wish on the proceedings.The court cannot accept any comment on the ongoing trial proceedings, as
criticism on any issue should be made within a periphery. The court is
aware of the consequence of criticisms if those are made without
adequate knowledge on the topics, said the verdict.About an earlier HC verdict that convicted seven journalists in a
contempt of court case filed for publishing reports on educational
certificates of former HC judge Faisal Mahmud Faizee, the HC bench said
that was an isolated event. Formulating the law providing full
protection to journalists following that was not right.It noted that government officials have been given powers to disobey the
court’s orders as per section 10 of the Contempt of Court Act-2013,
which cannot be considered democratic.The verdict said according to the provisions of the act, the court
cannot summon any government officials before it in a contempt of court
case, and the contempt case against any government official will become
ineffective immediately after his/her retirement.The HC bench comprising Justice Quazi Reza-Ul Hoque and Justice ABM
Altaf Hossain gave the judgment after hearing the writ petition — public
interest litigation — filed by SC lawyers Asaduzzaman Siddiqui and
Ayesha Khatoon.The bench also rejected two separate petitions filed by Mizanur Rahman
Khan, a senior journalist of the Prothom Alo, and the Gazetted Officers
Association for becoming party to the case so that they could place
arguments to defend the law.The writ petitioners challenged the legality of some sections of the contempt law.They claimed that those sections have made the articles 27, 108 and 112 of the constitution ineffective.Section 4 of the law states that innocent publications or distribution are not contempt of court.According to section 5, publication of impartial and authentic report is
not contempt of court while section 6 stated that bringing allegations
against the presiding judge of a subordinate court is not contempt of
court.As per section 7, publication of information on ongoing proceedings (of
cases) in a chamber or close-door-room except a few events does not
constitute contempt of court.According to section 9, someone accused of contempt of court will not be
punished for violating this law by publishing anything or doing any act
that is not considered punishable offence under the law.Section 10 stated that contempt allegations cannot be brought against
government officials for failure to implement court orders.Section 11 said the court can exempt an accused in a contempt of court
case if he/she can provide satisfactory information in reply to a show
cause notice.Section 13 (2) said the court can pardon any accused in a contempt case if he/she offers unconditional apology before court.Petitioner’s counsel Manzill Murshid told this correspondent that the
High Court will now deal with contempt cases against anybody under
article 108 of the constitution.In June 2011, the government placed a bill in the House to enact a new
law (declared void yesterday) on contempt of court to replace the one
enacted in 1926 during the British colonial rule.Explaining the rationale for the move, the government had said the 1926
law on contempt of court is “unclear and also incomplete to a large
extent”.Due to its inadequacies, there was confusion in public mind about punishment for contempt of court, the government reasoned.
Tragedy under the wheel
RECKLESS driving has claimed another life on Tuesday as a minibus hit a rickshaw from the side near Kamalapur in the city and crushed under its wheel Roksana Begum, who had fallen on to the street. The woman was taking her little daughter home from her school. This is just another case added to the long list of tragedies on the road taking place rather frequently. And as in most cases, the delinquent driver and his assistants could flee the scene of accident unscathed.The circumstances of the accident as reported in the media clearly demonstrate that the killer bus driver could easily save the victim, had he been a little careful.We may recall a similar tragedy that took place in front of Willes Little Flower School at Kakrail more than three and a half years back. In that accident a speeding bus killed KG student Sheikh Hamim and critically injured his mother as they were crossing the road on their way home. Unlike in Tuesday’s case, the driver of Hamim’s killer bus was caught by the public. Even so we are not aware, like in numberless other cases, if the driver was duly punished for his offence.Cases of careless driving ending up in such sad accidents deserve harsher punitive actions than are in practice. We would urge the government to have a serious rethink on the issue so that stern penal measures with deterrent effect are instituted to deal with reckless driving.
As schoolhouse damaged by storm not repaired..
Students of Putimari Registered Primary School in Monoharpur union of Palashbari upazila have to attend classes under the open sky as the schoolhouse, damaged in a storm in April this year, is yet to be repaired.Local people set up the school in 1974 and the present schoolhouse was constructed in 1995.The number of students increasing gradually. In April this year the roof of schoolhouse got damaged by a storm.The school authority on May 1 urged the upazila education officer of Palashbari for immediate renovation of the schoolhouse, so that the children’s classes are not hampered.On July 1, upazila engineer of LGED Abu Taiyab Shamsuddin visited the school and he issued a letter on July 15, declaring the schoolhouse abandoned.After that the authority arranged classes on the school ground.“It is really difficult to conduct classes in scorching hot days while students run for shelter at nearby houses when the sky is covered with cloud. If the situation continues, we will not be able to prevent dropout of students,” said Nurul Islam, headmaster of the school.“The schoolhouse will be renovated with a tin-shed roof, and we are contacting the LGED for the purpose,” said ATM Rownak Akhter, upazila education officer, Palashbari.
820 hapless women to get jobs for five years
Eight hundred and twenty destitute women, 10 each from 82 unions of the district, are going to be employed for five years under the government’s Rural Employment and Road Maintenance Programme.The selection in the district started on September 14.
The beneficiaries — divorced or widowed women or those abandoned by husband, and belonging to age group 18 to 35 years, will be employed for daily wage of Tk 150 to look after the rural roads for small repair and maintenance for five years, said Belal Hossain, executive engineer of LGED in Gaibandha.“They will get Tk 90 for daily work while the rest Tk 60 will be deposited with the bank account against their name for five years. After five years, each of these women will get a substantial amount that will help their rehabilitation,” he said.
The beneficiaries — divorced or widowed women or those abandoned by husband, and belonging to age group 18 to 35 years, will be employed for daily wage of Tk 150 to look after the rural roads for small repair and maintenance for five years, said Belal Hossain, executive engineer of LGED in Gaibandha.“They will get Tk 90 for daily work while the rest Tk 60 will be deposited with the bank account against their name for five years. After five years, each of these women will get a substantial amount that will help their rehabilitation,” he said.
The economics of minimum wages
The Rana Plaza tragedy, although devastating and sad as an event, has contributed to one positive result. This has raised sufficient international and national voice to support the need for better employment standards and practices in the organised private sector.One aspect of this re-examination of what constitutes globally acceptable employment practices is the need for a realistic minimum wage. There is an ongoing heated political and social debate on this subject.This is welcome but it needs to be tempered with good economics to make sure that the end result is a positive outcome for the labour market, the readymade garments (RMG) sector, and Bangladesh development as a whole.The importance of looking at the economic aspects of this debate cannot be over-emphasised in a labour surplus economy like Bangladesh. For the economy as a whole there is a major employment challenge defined as the need to create good jobs that is characterised by higher productivity and higher incomes.The most recent Labour Force Survey of 2010 showed that some 88 percent of Bangladesh’s 54 million labour force was engaged in economic activities that are informal in nature. Some 45 percent of total employment was in agriculture, where real wages and average labour productivity tend to be the lowest in the economy.A major development challenge, which also coincides with the most fundamental aspect of the employment challenge, is the need to shift labour from agriculture and other low-productivity, low-income informal activities to formal manufacturing activities.
The growth of the RMG sector has provided Bangladesh a great opportunity to reduce the employment share of agriculture and increase the employment share of formal manufacturing, very much on the basis of the economy’s comparative advantage.Abundant supply of low wage workers, primarily female workers, has been a major factor underlying the growth of the RMG sector. As rising wages (adjusted for productivity) increase the unit cost of RMG (adjusted for quality differential) in competitor countries, such as China, India and Sri Lanka, the international demand has been shifting to lower cost sources including Bangladesh.Indeed the labour cost advantage of Bangladesh is the most important reason for sustaining this competitive edge.This labour cost advantage, however, does not necessarily support the contention of some RMG producers that current wages are appropriate or that the employment conditions cannot be improved because it will increase the cost of production excessively.International experience shows that most countries have minimum employment standards as a part of the social protection policy that allows for insurance and other allowances to deal with accidents, illness, maternity, child care and employment termination.Most countries (some 90 percent) also have minimum wage legislation to prevent perceived or actual instances of labour exploitation. These interventions are aimed at improving the welfare of workers thereby contributing to higher productivity through better motivation and commitment.The issue of minimum employment standards is hardly contentious and the Rana Plaza tragedy and similar other events in the past are ample testimony to the need to fill this legislative and policy gap quickly.What, however, are contentious amongst economists is the need for and the level of minimum wages. The main issue here is the adverse implication of minimum wages for employment.Standard economic theory suggests that if wages are set too high in relation to market clearing wages, there will be a reduction in employment. Those who are employed will gain, but those who cannot get a job (or lose job) because of lower demand for labour owing to higher minimum wages will lose.Labour group as a whole may gain or lose depending upon the underlying demand and supply elasticity.There is a huge body of empirical literature on the subject of minimum wages and employment based on international experience. On balance, the evidence is not conclusive.Studies on both sides of the debate have found evidence in their favour: some studies say employment falls while some conclude that there is no adverse effect on employment.Those studies that do not find evidence of falling employment explain the result by pointing out that employers have a range of options to adjust to higher minimum wages.These include adjustment by improving labour productivity through better supervision, by lowering non-wage benefits and training costs, by reducing the number of hours or days of employment, by substituting lower-skilled workers with higher skills, by passing on costs to consumers through higher prices, and by absorbing the extra cost from profits.As is obvious, not all ways of adjusting to minimum wages is conducive to the interest of the workers and as such a careful research on the level and the impact of minimum wages on the welfare of workers as a whole is important.In the absence of conclusive evidence from international experience on the impact of minimum wages on employment, how might Bangladesh proceed?There is no short-cut answer to this question. Considerable research and careful analysis is needed to inform this debate. A few fundamental points will need to be kept in mind in designing this research and making recommendations based on the findings of this research.First, wages will have to be properly aligned with labour productivity to keep the Bangladesh competitive edge in RMG and other labour-intensive productions.Second, minimum wages must not be set at a level that is substantially higher than market wages. This begs the question what is the market wage rate in Bangladesh? The answer to this question can be found from a good analysis of wages data from the latest Labour Force Survey. Research done by this author shows that labour markets in agriculture, non-agriculture informal sector and formal manufacturing work reasonably flexibly, and wages respond to productivity improvements.Wages economy-wide are increasing in response to productivity improvements. This empirical result is of fundamental importance and can guide the process of minimum wage setting. Real wages and average labour productivity are the lowest in agriculture and set a floor on real wages economy-wide in an opportunity cost sense.Adjusting for differences in number of days worked, transaction costs of migration and productivity differential in manufacturing resulting from better education and training, it is possible to estimate minimum average real wages in manufacturing that will be consistent with the development challenge of inducing labour transfer from agriculture to manufacturing.This exercise should be cross checked with more direct evidence from the production cost and profitability analysis of the RMG sector. The contribution of labour cost to per unit cost of RMG output and what level of wage rate is consistent with a reasonable rate of return on investment in RMG can provide conclusive evidence on whether present wages are too low and exploitative in nature.In doing this exercise, other labour cost emerging from the need to ensure better social protection to workers through employment legislation must also be taken into account.Finally, it is also important to keep in mind that Bangladesh RMG producers are essentially price takers – garment prices are determined internationally by global market forces. Raising minimum wage too high might be counter-productive if that results in loss of RMG markets, which in turn will hurt employment opportunities.Nevertheless, as the author wrote in several previous articles, RMG producers must understand that it is in their own interest to have a happy and committed work force in a safe work environment.Since RMG is targeted to the global market, it is good policy to ensure minimum employment standards consistent with good global practices.The matter of minimum wage setting is more an empirical question than a political or philosophical one. Wage setting cannot be isolated from labour supply and demand as otherwise it will undermine a critical basis for international trade.Bangladesh derives its comparative advantage in RMG and other labour-intensive manufacturing precisely because it is well-endowed with labour force and as a result wage costs are relatively low.However, it is possible that owing to lack of information and organisation the RMG workers are being paid below the true market wages. The rationale for minimum wages should be to help establish a floor on wages that is consistent with the concept of a true market wage rate.Sadiq Ahmed is the vice chairman of the Policy Research Institute of Bangladesh
The growth of the RMG sector has provided Bangladesh a great opportunity to reduce the employment share of agriculture and increase the employment share of formal manufacturing, very much on the basis of the economy’s comparative advantage.Abundant supply of low wage workers, primarily female workers, has been a major factor underlying the growth of the RMG sector. As rising wages (adjusted for productivity) increase the unit cost of RMG (adjusted for quality differential) in competitor countries, such as China, India and Sri Lanka, the international demand has been shifting to lower cost sources including Bangladesh.Indeed the labour cost advantage of Bangladesh is the most important reason for sustaining this competitive edge.This labour cost advantage, however, does not necessarily support the contention of some RMG producers that current wages are appropriate or that the employment conditions cannot be improved because it will increase the cost of production excessively.International experience shows that most countries have minimum employment standards as a part of the social protection policy that allows for insurance and other allowances to deal with accidents, illness, maternity, child care and employment termination.Most countries (some 90 percent) also have minimum wage legislation to prevent perceived or actual instances of labour exploitation. These interventions are aimed at improving the welfare of workers thereby contributing to higher productivity through better motivation and commitment.The issue of minimum employment standards is hardly contentious and the Rana Plaza tragedy and similar other events in the past are ample testimony to the need to fill this legislative and policy gap quickly.What, however, are contentious amongst economists is the need for and the level of minimum wages. The main issue here is the adverse implication of minimum wages for employment.Standard economic theory suggests that if wages are set too high in relation to market clearing wages, there will be a reduction in employment. Those who are employed will gain, but those who cannot get a job (or lose job) because of lower demand for labour owing to higher minimum wages will lose.Labour group as a whole may gain or lose depending upon the underlying demand and supply elasticity.There is a huge body of empirical literature on the subject of minimum wages and employment based on international experience. On balance, the evidence is not conclusive.Studies on both sides of the debate have found evidence in their favour: some studies say employment falls while some conclude that there is no adverse effect on employment.Those studies that do not find evidence of falling employment explain the result by pointing out that employers have a range of options to adjust to higher minimum wages.These include adjustment by improving labour productivity through better supervision, by lowering non-wage benefits and training costs, by reducing the number of hours or days of employment, by substituting lower-skilled workers with higher skills, by passing on costs to consumers through higher prices, and by absorbing the extra cost from profits.As is obvious, not all ways of adjusting to minimum wages is conducive to the interest of the workers and as such a careful research on the level and the impact of minimum wages on the welfare of workers as a whole is important.In the absence of conclusive evidence from international experience on the impact of minimum wages on employment, how might Bangladesh proceed?There is no short-cut answer to this question. Considerable research and careful analysis is needed to inform this debate. A few fundamental points will need to be kept in mind in designing this research and making recommendations based on the findings of this research.First, wages will have to be properly aligned with labour productivity to keep the Bangladesh competitive edge in RMG and other labour-intensive productions.Second, minimum wages must not be set at a level that is substantially higher than market wages. This begs the question what is the market wage rate in Bangladesh? The answer to this question can be found from a good analysis of wages data from the latest Labour Force Survey. Research done by this author shows that labour markets in agriculture, non-agriculture informal sector and formal manufacturing work reasonably flexibly, and wages respond to productivity improvements.Wages economy-wide are increasing in response to productivity improvements. This empirical result is of fundamental importance and can guide the process of minimum wage setting. Real wages and average labour productivity are the lowest in agriculture and set a floor on real wages economy-wide in an opportunity cost sense.Adjusting for differences in number of days worked, transaction costs of migration and productivity differential in manufacturing resulting from better education and training, it is possible to estimate minimum average real wages in manufacturing that will be consistent with the development challenge of inducing labour transfer from agriculture to manufacturing.This exercise should be cross checked with more direct evidence from the production cost and profitability analysis of the RMG sector. The contribution of labour cost to per unit cost of RMG output and what level of wage rate is consistent with a reasonable rate of return on investment in RMG can provide conclusive evidence on whether present wages are too low and exploitative in nature.In doing this exercise, other labour cost emerging from the need to ensure better social protection to workers through employment legislation must also be taken into account.Finally, it is also important to keep in mind that Bangladesh RMG producers are essentially price takers – garment prices are determined internationally by global market forces. Raising minimum wage too high might be counter-productive if that results in loss of RMG markets, which in turn will hurt employment opportunities.Nevertheless, as the author wrote in several previous articles, RMG producers must understand that it is in their own interest to have a happy and committed work force in a safe work environment.Since RMG is targeted to the global market, it is good policy to ensure minimum employment standards consistent with good global practices.The matter of minimum wage setting is more an empirical question than a political or philosophical one. Wage setting cannot be isolated from labour supply and demand as otherwise it will undermine a critical basis for international trade.Bangladesh derives its comparative advantage in RMG and other labour-intensive manufacturing precisely because it is well-endowed with labour force and as a result wage costs are relatively low.However, it is possible that owing to lack of information and organisation the RMG workers are being paid below the true market wages. The rationale for minimum wages should be to help establish a floor on wages that is consistent with the concept of a true market wage rate.Sadiq Ahmed is the vice chairman of the Policy Research Institute of Bangladesh
German ambassador visits Savar victims at CRP
German Ambassador Albrecht Conze and his wife Véronique Conze visited Savar victims under treatment at the Centre for the Rehabilitation of the Paralysed (CRP) in Savar yesterday to underline the support of the German government.Right after the disaster, the German government had released €50,000 to support those victims of the Savar building collapse who lost limbs or were seriously injured immediately after the tragedy, the German embassy in Dhaka said in a statement yesterday.The German Red Cross (DRK) coordinated the physical rehabilitation project, which is being implemented by the CRP with the technical support of the International Committee of the Red Cross (ICRC).Following their recovery, the victims will also receive work rehabilitation support through skills development training run by the CRP.Ambassador Conze praised cooperation between DRK and ICRC and assistance for the victims of Rana Plaza provided by CRP.“Cooperation between DRK, ICRC and CRP aiming at rehabilitation of those affected by the tragedy has been outstanding. Together, they are assisting the victims in restoring their dignity and reintegrating them into their personal and professional lives,” he said.“I am most grateful to Valerie Taylor and her team at the CRP for their immediate initiatives right after the incident. More than 200 patients, many seriously injured, received treatment at the CRP,” he said.In order to improve the future life of those who suffered long-term injuries, the German government has earmarked an additional amount of €2.5 million within an ongoing project in the field of social and environmental standards in the industry, implemented by GIZ, Germany’s development cooperation agency.
Bangladesh to get more duty privileges from China
China will widen duty-free access for Bangladeshi items up to 95 percent to boost trade relations between the two countries and reducing the trade gap, Chinese Foreign Minister Wang Yi said yesterday.Yi spoke at a meeting with Prime Minister Sheikh Hasina at the conference building of the UN headquarters in New York on Tuesday.Hasina is now in New York on an eight-day official visit to attend the 68th session of the United Nations General Assembly.PM’s Deputy Press Secretary Bijan Lal Dev briefed reporters after the meeting.
Hasina said Bangladesh always values the friendship and cooperation with the neighbouring countries, especially with China, as it is a big economic power.Hasina said both Bangladesh and China could work together for the development of the people of the region.She also said the party-to-party relationship between the two countries is also good.He also said Hasina that China would discuss with the authorities of India, Myanmar and Bangladesh next month to move ahead with a project relating to economic corridor.Foreign Minister Dipu Moni, Ambassador at-Large M Ziauddin, PM’s Media Adviser Iqbal Sobhan Chowdhury and Bangladesh’s permanent representative to the UN AK Abdul Momen were also present.
Hasina said Bangladesh always values the friendship and cooperation with the neighbouring countries, especially with China, as it is a big economic power.Hasina said both Bangladesh and China could work together for the development of the people of the region.She also said the party-to-party relationship between the two countries is also good.He also said Hasina that China would discuss with the authorities of India, Myanmar and Bangladesh next month to move ahead with a project relating to economic corridor.Foreign Minister Dipu Moni, Ambassador at-Large M Ziauddin, PM’s Media Adviser Iqbal Sobhan Chowdhury and Bangladesh’s permanent representative to the UN AK Abdul Momen were also present.
Women’s economic inclusion deepening: WB report
Legal and regulatory barriers to women’s economic inclusion have decreased over the past 50 years globally, but many laws still hinder women’s participation in the economy, a new report finds.The report of the World Bank and International Finance Corporation (IFC) also said laws restricting women’s economic activity are currently most prevalent in the Middle East and North Africa, Sub-Saharan Africa and South Asia.Third in a series, the report — Women, Business and the Law 2014: Removing Restrictions to Enhance Gender Equality — monitors regulations affecting women entrepreneurs and employees in 143 economies.This edition, which was released on Tuesday, highlights reforms carried out over the past two years, examines the evolution of women’s property rights and legal decision making ability since 1960 and expands coverage to examine legal protections addressing violence against women.“The ideal of equality before the law and equality of economic opportunity isn’t just wise social policy: It is smart economic policy,” said World Bank Group President Jim Yong Kim, according to a statement.“When women and men participate in economic life on an equal footing, they can contribute their energies to building a more cohesive society and a more resilient economy. The surest way to help enrich the lives of families, communities and economies is to allow every individual to live up to her or his fullest creative potential.”“Our latest edition of Women, Business and the Law shows that many societies have made progress, gradually moving to dismantle ingrained forms of discrimination against women,” said Kim.“Yet a great deal remains to be done.”This report finds 44 economies have made 48 legal changes, thus increasing women’s economic opportunities over the past two years.
Biman launches in-flight magazine Bihanga
Biman Bangladesh Airlines re-launched its in-flight magazine on Tuesday, six years after being suspended.National cricketer Shakib Al Hasan unveiled the magazine at a gala event at a hotel in Dhaka.The magazine that was previously named ‘Diganta’ has now been rebranded as Bihanga, the Bangla word for bird. It will be published bimonthly.India’s MaXposure Media Group (MaXposure) has been contracted to publish the magazine.The maiden issue, containing 72 pages, covers write-ups on culture, heritage, tourism and fashion in Bangladesh and different international cities that Biman flies to.The publication of Diganta, which was published quarterly, was suspended in 2007. The national carrier’s magazine prior to Diganta was named Jatri.The Biman management took an initiative to publish its in-flight magazine after Prime Minister Sheikh Hasina expressed displeasure over the in-flight services in July during her return from Belarus.Addressing the function, Shakib hoped that Biman will become more punctual. He also requested the Biman management to continue to contribute to cricket in the country, which Biman suspended last year.The Biman board scrapped two of its four sports teams, including cricket, in January last year after a primary investigation found irregularities regarding free tickets issued to players.“This is a part of our continuous journey to become what the prime minister would say is a world class airlines,” said Kevin John Steele, chief executive officer of Biman.Civil Aviation Minister Faruk Khan and Biman Chairman Air Marshal Jamaluddin Ahmed also spoke.
BSF pushes in 19 people thru’ border
Indian Border Security Force left 19 Bangladeshi citizens on Bangladesh territory across Bakchar border in Chapainawabganj on Tuesday night.The Bangladeshi nationals, who are from Chapainawabganj, Patuakhali, Gopalganj, Bhola and Sunamganj districts, were detained by members of Border Guard Bangladesh near the border under Alatuli Union.Requesting anonymity, an official of the home ministry said driving them to Bangladesh territory like that was illegal, as their nationality could not be ascertained.There had been instances of leaving Bangla-speaking Indian nationals on Bangladesh territory, he said, adding that the legal procedures require India to inform Bangladesh’s foreign ministry about such persons.Bangladesh then verifies their nationality and allows them in.The citizens said they had sneaked into India through different borders in 2011. After being arrested by Indian police, they served two years in Bahrampur Central Jail in West Bengal.Lt Col Monzurul Alam, commanding officer of 9 BGB Battalion in Chapainawabganj, said BSF members of Ramnagar camp under Murshidabad, West Bengal, had “pushed them in” around 11:30 pm.He said BSF did not follow the legal procedures, adding that they were handed over to Sadar Police Station yesterday afternoon.
MV Baro Awlia gets a new look
One might mistake MV Baro Awlia for a new ship if he does not know the coastal vessel has gone through a complete renovation.Many travellers, except the regular ones, would think that Bangladesh Inland Water Transport Corporation has added a new passenger vessel to its fleet.After more than two years, the state-owned transport organisation is set to bring back the vessel to regular services between Chittagong and Hatiya via Sandwip.“We have already completed the renovation. The ship is now ready for carrying passengers,” BIWTC Chairman Mojibor Rahman said, adding that the Eid passengers are expected to get a better experience this time. Highspeed Shipbuilding and Engineering Company Ltd, a local shipbuilder, carried out the repairs by replacing some 71 tonnes of MS (mild steel) plates.The shipbuilder overhauled its accommodation, main engines and generators, and did the work of painting and electrification, said Qamrul Hasan, director for marketing and promotion of Highspeed Group of Companies.
The government, however, had to go through some hurdles for awarding the ship’s renovation work due to a poor response.The BIWTC had invited bids for eight times. Finally, Highspeed was awarded the job in January at around Tk 5.10 crore.However, the contract value later rose to around Tk 5.69 crore as a higher amount of MS plates had to be replaced than estimated before, said KZ Siddiqui, senior general manager of Highspeed Group.The ship with the speed of 12 nautical miles per hour was imported from China in 2002 at around Tk 45 crore. It can carry 850 passengers and goods worth 880 tonnes. The vessel had gone for renovation first in 2006.Highspeed formally hander over the ship to the BIWTC yesterday, said Hasan, also a former chairman of Bangladesh Road Transport Authority.However, more than halfway through the renovation, the BIWTC had taken the ship from Highspeed for carrying homebound passengers on a test basis during the last Eid-ur-Fitr.Bangladesh can save a huge amount of foreign currencies by repairing the existing vessels without going for new purchases, Hasan said.The government should start overhauling its dilapidated vessels without any delay, he added.Since its inception more than 50 years ago, Highspeed has built at least 100 units of specialised ships such as fishing trawlers, oil tankers, dry cargo vessels, passenger ferries and coastal patrol boats.Highspeed Group has 15 companies, specialising in the field of plant engineering and shipbuilding. Its affiliated company, Birds Bangladesh Agencies Ltd, specialises in worldwide shipping container services.The other companies are working in the field of international trading, civil construction and air and sea freight forwarding.The Group is also involved in deep-sea fishing and carrying petroleum, oil and lubricants.It employs more than 1,000 people, including workers and engineers, with a gross annual turnover at around Tk 250 crore in recent times, according to KM Mahmood ur Rahman, chairman of the Group.
Election year, but ADP efforts down
Ministries and divisions are lagging in the implementation of the Annual Development Progra-mme (ADP) despite it being an election year.Between July and August, Tk 4,081 crore, or 6.5 percent of the total allocation of Tk 62,435 crore, was spent, according to statistics from the Implemen-tation Monitoring and Evaluation Division (IMED).Though expenditure in some election-oriented projects has increased, the overall expenditure has gone down, a planning ministry official said. Among the 54 ministries and divisions, 22 implemented 0 to 2 percent of their allocations.ADP implementation stood at 8 percent of the allocation in the same period a year ago.Of the amount used in the first two months of fiscal 2013-14, Tk 3,050 crore came from the government’s own fund and Tk 1,031 crore from foreign aid.The local government division and the primary and mass education ministry spent the highest among the 10 large ministries and divisions in the July-August period.“Through these two ministries, schools, small roads, bridges and culverts were built and repaired in the constituencies, and hence expenditure was expedited,” the official said.However, implementation in the big and priority projects is very slow. “Although a couple of power projects in the public sector are going on, the implementation statuses of the rest of the projects are very poor.”In the first two months, the power division’s implementation rate stood at only 2 percent, whereas the rate was 12 percent last year.The bridges division, which got the third highest allocation in the ADP due to the Padma Bridge project, expended only 0.13 percent of its allotment.The health ministry continued with its poor implementation from last fiscal year: in the first two months it used up only 2 percent of its allocation.The roads division implemented only 5 percent of its share, due to no significant progress in many big projects like the Dhaka-Chittagong four-lane highway project.The autonomous bodies managed to utilise only 2 percent of their allocation in the first 2 months of the current fiscal year.
Yunus gives momentum to MDGs
Nobel Laureate Prof Muhammad Yunus took part in a number of high-profile meetings in New York to help advance the millennium development goals and social business idea.On Tuesday, the micro-credit pioneer took part in a discussion with UN Secretary General Ban Ki Moon at the MDG Inno-vation Forum in New York at the United Nations Secretariat building.The UN secretary general invited leaders from the private and public sectors and demonstrated ways to accelerate progress on the MDGs, Yunus Centre said in a statement yesterday.The forum showcased four high-impact projects, including one presented by Yunus, which are meant to help advance traditional philanthropy in the direction of smart targeted investments and creative partnerships, with a specific goal of garnering new commitments to aid in their implementation.Prof Yunus, Mary Joy Pigozzi on behalf of Sheikha Moza, Ray Chambers and Prof Jeffrey Sachs made presentations on high impact projects.Presentation of Yunus, who is also the founder of Grameen Bank, focused on expanding social business globally towards achieving the MDG targets in education, healthcare and food security.Other MDG advocates and industry leaders provided constructive feedback on the presentations, which helped them interact with the speakers and explore new ideas of collaboration.Yunus also participated in the Clinton Global Initiative (CGI) at a special session styled ‘Advancing Progress: Investing in Healthy and Educated Girls and Women’.Yunus, Queen Rania of Jordan, Hillary Rodham Clinton, former US Secretary of State, Melinda Gates of the Bill & Melinda Gates Foundation, took part in the session, which highlighted specific approaches to enable girls and women worldwide to learn, earn, thrive, and control their own destinies.The banker to the poor spoke about social business and highlighted experiences from the Grameen Nursing College in transforming the lives of girls in Bangladesh.As a commissioner of the Broadband Commission, he also attended the group’s 6th annual meeting on Friday.On the sidelines of the meeting, he attended a deal signing ceremony between Grameen Intel Social Business in Bangladesh with the Macedonia government to take technology solutions for agriculture communities in Macedonia.Yunus participated as keynote speaker at the UN Global Compact Summit 2013 on September 19-20 at the Grand Hyatt in New York.Chaired by Ban Ki-moon, the summit brought together chief executives with leaders from civil society, governments and the UN to unveil a new global architecture for corporate sustainability.Yunus delivered a key note speech on “How can corporations create social businesses to address pressing social problems” at the inaugural dinner.
Govt to lay foundation stone Oct 22
The government will officially launch the much-talked about Rampal power plant project next month despite growing opposition from environmentalists over its potential vitiating impacts on the Sundarbans.Prime Minister’s Energy Adviser Tawfiq-e-Elahi Chowdhury yesterday said the foundation stone of the 1,320-megawatt plant will be laid on October 22 addressing all environmental concerns.“The plant won’t negatively affect the mangrove forest as the emission of green house gas would be kept at the minimum level,” he told reporters during a briefing at Bidyut Bhaban in the capital.“We are setting up the plant 14 kilometres off the Sundarbans. We will import high quality coal. We are building 275-metre high chimney. We will employ the state-of-the art technology. We are taking all measures to keep its impact on the Sundarbans at a negligible level,” he added.The media briefing came just a day after the National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports had begun a long march from the capital towards the project site in Rampal to drum up public opposition to the project.Environmentalists and eminent citizens have already expressed worries about the project as the plant would produce electricity just 14-km off the Sundarbans. By burning a huge amount of coal, the plant would also produce green house gases, sulphur, fly ash and other particles hazardous to the World Heritage site.The government, said the adviser, has chosen the site as a small number of people would have to be evacuated, water would be available and access to the river route would make it easy to import coal.Tawfiq claimed that the controversy over the plant and its impact on the Sundarbans was “not based on facts.”Initially, the plant would produce about 650 MW of power, said Power Secretary Monowarul Islam.The Department of Environment has not only approved the scheme, but also made some suggestions, which would be given due consideration, he added.Bangladesh and India had inked a deal in April to set up the coal-fired power plant in Rampal, Bagerhat.The adviser also informed newsmen that India would start test supply of 250 MW of power to Bangladesh by Friday, with commercial supply beginning on October 5.
Losses pile on RMG factories
Garment makers have been counting millions of dollars in losses every day, due to a halt in production amid the ongoing labour unrest that stemmed mainly from a rally called by a minister early this week.
More than 160 garment factories remained closed in Gazipur, Savar and Narayanganj yesterday as workers continued violent demonstrations for a fifth straight day, demanding a near tripling of their wages.
Like many exporters, the DBL Group counts loss of around Tk 4.5 crore a day due to the unrest, its Managing Director MA Jabbar said yesterday.
It is, however, difficult to estimate the total loss in the sector.
Jabbar has kept all his four factories in Gazipur shut since the Saturday rally in the capital’s Suhrawardy Udyan, where Shipping Minister Shajahan Khan spoke for increasing the garment workers’ pay.
The DBL Group tried to reopen its factories every day but some outsiders instigate the workers and vandalised the factories that employ around 11,000 people.
Momin Mondol, managing director of Mondol Group, another leading garment maker, said all his 16,000 workers in three factories had been sitting idle for the last five days.
Meanwhile, Home Minister Muhiuddin Khan Alamgir yesterday said the enhanced wages would be announced in late November.
“I have ordered the law enforcers to ensure security of factories and go tough on outsiders,” he told reporters after a meeting with the garment owners and workers at his secretariat office in the capital.
Former BGMEA president Abdus Salam Murshedy said they requested the government to deploy members of Border Guard Bangladesh along with Rab and policemen in the factories of the crisis-hit areas.
The home minister has asked the factory owners to resume production today and assured them of security, said Murshedy who was present at the meeting.
More than 160 garment factories remained closed in Gazipur, Savar and Narayanganj yesterday as workers continued violent demonstrations for a fifth straight day, demanding a near tripling of their wages.
Like many exporters, the DBL Group counts loss of around Tk 4.5 crore a day due to the unrest, its Managing Director MA Jabbar said yesterday.
It is, however, difficult to estimate the total loss in the sector.
Jabbar has kept all his four factories in Gazipur shut since the Saturday rally in the capital’s Suhrawardy Udyan, where Shipping Minister Shajahan Khan spoke for increasing the garment workers’ pay.
The DBL Group tried to reopen its factories every day but some outsiders instigate the workers and vandalised the factories that employ around 11,000 people.
Momin Mondol, managing director of Mondol Group, another leading garment maker, said all his 16,000 workers in three factories had been sitting idle for the last five days.
Meanwhile, Home Minister Muhiuddin Khan Alamgir yesterday said the enhanced wages would be announced in late November.
“I have ordered the law enforcers to ensure security of factories and go tough on outsiders,” he told reporters after a meeting with the garment owners and workers at his secretariat office in the capital.
Former BGMEA president Abdus Salam Murshedy said they requested the government to deploy members of Border Guard Bangladesh along with Rab and policemen in the factories of the crisis-hit areas.
The home minister has asked the factory owners to resume production today and assured them of security, said Murshedy who was present at the meeting.
A policeman charges baton on a garment worker when she along with other workers of Fatullah industrial area blocked the Dhaka-Narayanganj link road yesterday, demanding a minimum monthly salary of Tk 8,114.
Jabbar of DBL Group said, during the protests in the last five days, the unruly workers not only vandalised the factories, but also burnt eight delivery vans and an ambulance of the company.
He added he would have to go for expensive air shipment to maintain the lead-time set by the buyers.
The owner of Mondol Group said he would have to pay an additional $6 lakh for air shipment due to the delay caused by the unrest.
“Other garment makers will face the same fate,” Mondol said.
Meanwhile, labour leaders have assured the state minister for labour and employment of their support in reopening the factories today, Labour Secretary Mikail Shipar said after an emergency meeting.
In a statement, IndustriALL Bangladesh Council’s General Secretary Roy Ramesh said they had proposed the minimum wages for workers based on the Millennium Development Goals and the cost of living, which is around $120 per month.
“There is a consensus among all sections of Bangladeshi society that wages are low and workplace safety is negligible,” the statement added.
It is now to be seen whether the employers and the government come up with a proposal that meets the aspirations of the agitating workers, said IndustriALL Global Union Regional Secretary Sudhershan Rao in the statement.
Meanwhile, at least 25 workers were injured when police charged batons on them as they were demonstrating for more than one hour, blocking the Dhaka-Tangail highway and the Dhaka-Narayanganj link road.
The workers vandalised at least 10 vehicles and eight factories in Savar and Gazipur.
He added he would have to go for expensive air shipment to maintain the lead-time set by the buyers.
The owner of Mondol Group said he would have to pay an additional $6 lakh for air shipment due to the delay caused by the unrest.
“Other garment makers will face the same fate,” Mondol said.
Meanwhile, labour leaders have assured the state minister for labour and employment of their support in reopening the factories today, Labour Secretary Mikail Shipar said after an emergency meeting.
In a statement, IndustriALL Bangladesh Council’s General Secretary Roy Ramesh said they had proposed the minimum wages for workers based on the Millennium Development Goals and the cost of living, which is around $120 per month.
“There is a consensus among all sections of Bangladeshi society that wages are low and workplace safety is negligible,” the statement added.
It is now to be seen whether the employers and the government come up with a proposal that meets the aspirations of the agitating workers, said IndustriALL Global Union Regional Secretary Sudhershan Rao in the statement.
Meanwhile, at least 25 workers were injured when police charged batons on them as they were demonstrating for more than one hour, blocking the Dhaka-Tangail highway and the Dhaka-Narayanganj link road.
The workers vandalised at least 10 vehicles and eight factories in Savar and Gazipur.
Police disperse garment workers of Fatullah industrial area in Narayanganj, as they demonstrate on the Dhaka-Narayanganj link road yesterday to press home their demand for a pay hike.
GAZIPUR
The managements of more than 144 RMG units were forced to stop production at their factories fearing further vandalism, our correspondent reports.
The demonstration started around 8:30am when the workers blocked the Dhaka-Tangail highway, halting traffic movement for two hours.
The workers vandalised four factories — Mahmud Jeans, Niagara Textile, Apex and Dressman — in Kaliakoir.
Later, they put barricades at different points from Konabari to Chandra and vandalised at least 10 vehicles there.
The agitating workers, however, moved from the highway around 10:30am.
SAVAR
At least 20 workers were injured during a 30-minute clash with law enforcers in Zirani area of Savar around 9:30am.
The clash began when several thousand workers of Masihata Group, Pall-Mall Group and Jeans Plus blocked the Dhaka-Tangail highway.
The workers also vandalised at least four factories, said Abdus Sattar, deputy assistant director of Ashulia industrial police.
NARAYANGANJ
Around 5,000 workers of at least seven garment units gathered in front of Shibu Market and tried to block the Dhaka-Narayanganj link road around 9:30am.
The road communication resumed after an hour. At least five workers were injured during the clash
The managements of more than 144 RMG units were forced to stop production at their factories fearing further vandalism, our correspondent reports.
The demonstration started around 8:30am when the workers blocked the Dhaka-Tangail highway, halting traffic movement for two hours.
The workers vandalised four factories — Mahmud Jeans, Niagara Textile, Apex and Dressman — in Kaliakoir.
Later, they put barricades at different points from Konabari to Chandra and vandalised at least 10 vehicles there.
The agitating workers, however, moved from the highway around 10:30am.
SAVAR
At least 20 workers were injured during a 30-minute clash with law enforcers in Zirani area of Savar around 9:30am.
The clash began when several thousand workers of Masihata Group, Pall-Mall Group and Jeans Plus blocked the Dhaka-Tangail highway.
The workers also vandalised at least four factories, said Abdus Sattar, deputy assistant director of Ashulia industrial police.
NARAYANGANJ
Around 5,000 workers of at least seven garment units gathered in front of Shibu Market and tried to block the Dhaka-Narayanganj link road around 9:30am.
The road communication resumed after an hour. At least five workers were injured during the clash
Long march starts for Jessore
The long march “Save the Sundarbans” left Faridpur for Jessore Thursday morning on its way to Rampal in Bagerhat.More than a thousand people brought out a procession in the district town around 9:30am and paraded through the roads for around 30-minute prior to setting out for Jessore, reported our correspondent who is travelling with the long march.A convoy of around 30 vehicles carrying the protesters started for Jessore around 10:00am.The long march organised by the National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports, initiated for the cancellation of the Rampal power plant project in Bagerhat, which is just 14-kilometre off the world’s largest mangrove forest the Sundarbans.During the procession, the protesters chanted slogans — “my soil, my mother will not turn into a desert” (Amar mati amar ma morubhumi hobe na) and “we do not want any power plant, which will destroy the Sundarbans” (Sundarbans ke dhongsho kore bidyutkendro chai na).Some students of local schools also joined the procession.On its way, the protesters held a rally at Madhukhali upazila in Faridpur where Prof Anu Mohammad, member secretary of the committee, said if the Sundarbans is destroyed, it will left a negative impact on the people of the southern region.“If there will be no sign of life, what we will do with the electricity,” he said.Earlier reaching Faridpur Wednesday, they stayed the night at Ambika Memorial Hall in the town.The protesters will also hold rallies at Magura and Jhenidah on its way to press home their demands.When the oil gas protection body is carrying out the long march to save the Sundarbans, the government on Wednesday fixed October 22 for laying foundation stone of the power plant.At a rally in Faridpur Wednesday, the participants vowed to resist the government move to set up the coal-fired Rampal power plant near the Sundarbans.The long march, which is expected to reach Rampal on Saturday, will end with a rally at Digraj.More than 1,200 people set out on the long march from the capital’s Jatiya Press Club around 11:00am on Tuesday.Bangladesh and India had inked a deal on April 20 to set up a 1,320MW coal-fired power plant at Rampal.The project had drawn huge flak from environmentalists and eminent citizens, who say it would jeopardise the Sundarbans.
Pickets torch, vandalise 5 vehicles
At least five CNG-run auto-rickshaws were torched and vandalised and five crude bombs blasted in Chittagong city during the half-day hartal (shutdown) enforced by Jamaat-e-Islami and its student wing, Islami Chhatra Shibir, Thursday.
Jamaat and Shibir observed the seven-hour hartal in Chittagong and Cox’s Bazar since 6:00am protesting the arrests of 34 Shibir leaders and activists on Tuesday.
Jamaat has also enforced an eight-hour hartal in Kumarkhali upazila of Kushtia in protest against the arrest of Siddikur Rahman, Jamaat acting ameer of upazila unit and also chairman of Pagulat union parishad.
CHITTAGONG
The hartal activists set fire to a CNG-run auto-rickshaw at Sholoshahar in the city around 9:00am and also blasted a cocktail before leaving the scene, said Mushtaq Ahmed, additional deputy commissioner of Chittagong Metropolitan Police.
After bringing out a flash procession around 9:30am, another group of Jamaat-Shibir vandalised at least four three-wheelers and blasted four crude bombs in Prabartak intersection and Chakbazar areas in the port city, Mushtaq said.
COX’S BAZAR
The hartal was observed in the district in relaxed way as most of the educational institutions and shopping malls remained open.
No violence was reported in the district during the hartal hours.
KUSHTIA
Abdul Hamid, publicity secretary of Kushtia district unit of Jamaat, Wednesday evening declared the shutdown in Kumarkhali upazila for Thursday to protest the arrest of Siddikur.
The Jamaat leader was arrested on Sunday on charges of attacking police on November 5 last year.
Some of the roadside shops remained open while some owners kept shutters of their shops down fearing vandalism.
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