Beximco group lay-offs: Shinepukur, Beximco Pharma shares to be sold off to clear dues

The government will sell shares of Beximco Group's two running companies to pay the salaries of 13 laid-off companies owned by the conglomerate.

If the proceeds from the sale of shares of the two profitable companies -- Beximco Pharmaceuticals and Shinepukur Ceramics -- do not cover the salaries of the workers, the government will take steps in line with labour law.

The amount needed to pay the salaries could be between Tk 500 crore and Tk 550 crore, Labour and Employment Adviser M Sakhawat Hossain told a press briefing yesterday.

He held the briefing after a meeting with Finance Adviser Salehuddin Ahmed, Commerce Adviser Sk Bashir Uddin, Industries Adviser Adilur Rahman Khan, Labour Secretary AHM Shafiquzzaman, Finance Secretary Khairuzzaman Mozumder, Financial Institutions Division Secretary Nazma Mobarek, and senior officials of the securities and exchange commission, banks and financial institutions.

The Bangladesh Securities and Exchange Commission and Financial Institutions Division (FID) will take steps to sell the shares. On February 2, officials of the two organisations and several banks concerned will meet to discuss the sale of the two companies.

Factories of the conglomerate that have been closed will be shuttered for good, he said.

The disclosure comes at a time when workers of Beximco's laid-off factories have been demanding the reopening of 16 units that were closed in December.

"Beximco's loan scandal has surpassed the scandal of the Bangladesh Bank reserve heist," said the adviser.

The conglomerate's loans are over Tk 40,000 crore, including Tk 28,544 crore taken by its 32 textile and apparel subsidiaries.

"Of those 32 factories, 16 exist only on paper. But these factories were used [as collateral] to take loans."

The Bangladesh Bank will conduct a forensic audit to investigate whether there were irregularities and on what basis the loans were provided by Janata Bank and other financial institutions to the industrial establishments of Beximco Industrial Park, he said.

Beximco owes Janata Bank Tk 23,285 crore, Sonali Bank Tk 1,424 crore, Agrani Bank Tk 420 crore, Rupali Bank Tk 987 crore and National Bank Tk 315 crore, United Commercial Bank Tk 333 crore, AB Bank Tk 938 crore, Exim Bank Tk 497 crore, Global Islami Bank Tk 61 crore, Dutch Bangla Bank Tk 94 crore, IFIC Bank Tk 78 crore and Bangladesh Infrastructure Finance Fund around Tk 87 crore.

Departmental and legal actions will be taken based on the audit findings, which will be complete by February.

The FID along with BB will take departmental action, including the dismissal of the receiver, for failing to implement the advisory committee's decision on the closure process of Beximco's laid-off companies.

This includes not arranging for the announcement of the committee's decision via TV scrolls, he said, adding that the FID will take steps to replace the receiver.