Sudanese problem hurting BJMC

Amin Abdellatif, honorary consul general of Bangladesh to Sudan for last 25 years has allegedly been working against the country's jute exports to Sudan.

The issue has been going round not only in the Bangladesh Jute Mills Corporation (BJMC) but also in the textiles and jute ministry, foreign ministry and even the Prime Minister's Office, sources said.

“We have received complaints about Amin. We have sent those to the jute and textile ministry. What I can say is that we'll not go against the national interest,” said Mahmudul Hassan, chairman of BJMC.

“We will take actions after investigation,” said Hassan, a bureaucrat who has been posted in the BJMC in August this year.

Sudan is a major export destination for BJMC's products since the Middle East countries have almost stopped importing the products and demand is low in many places in the world.

Documents obtained by The Daily Star show that Amin worked against Bangladesh's exports in May this year over the supply of 60,000 bales B Twill Jute bags (sacks) to two government organisations in Sudan -- Agricultural Bank of Sudan (ABS) and Sudan Cotton Company (SCC).

These organisations in Sudan had set a precondition in their tender that only BJMC-manufactured jute bags were to be bought.

However, Amin took up the issue with the ABS authorities and challenged the mandatory procurement of BJMC-manufactured bags, according to the documents obtained by The Daily Star.

The ABS then floated a fresh tender in August to buy 1,00,000 B Twill Jute bags.

But on August 31, just four days before the opening of the bids, Amin sent a letter to the ABS authorities in which, misleading and false information was provided, like high prices of BJMC's products and the company's capacity, or the lack of, to deliver 1,00,000 bales on time.

The Sudanese businessman also reportedly got the opening of the bids rescheduled to September 25.

Then he played a different game.

Amin came to Bangladesh on September 2 and concluded two deals worth $32 million (Tk 250 crore) with the BJMC on September 4. The first one for the entire stock of 20,020 bales, and the second one for the remaining production capacity of 90,000 bales up to December 31 this year.

The price was $101 for 100 bags.

Amin paid in full -- Tk 46 crore -- for the goods in stock and 10 percent (Tk 20 crore) as commitment fee for the BJMC's production capacity up to December this year. The BJMC was supposed to ship its stock 20,020 bales to Amin by September 25.

The deals made Mushtaq Hussain, managing director of the Golden Fibre Trade Centre, a Bangladeshi jute trading company, furious as he is the sole agent of BJMC for selling its goods to three organisations, including ABS, SCC and Farmer's Commerce Bank in Sudan.

“Over the years I have seen that the BJMC has some weaknesses towards Amin,” said Mushtaq.

“We don't want any favours. We buy goods from the BJMC at its price and we have never manipulated the price to take undue advantage,” he said.

When asked why he was the sole agent of the BJMC for three major buyers in Sudan, he said any manufacturer and exporter can become such an agent. He also said Amin himself was the sole agent of the BJMC for entire Sudanese market for several years.

“Amin gives benefits to some BJMC officials who in return try to give business to him,” Mushtaq alleged.

On September 07, Mushtaq who is politically connected in Bangladesh also bought the BJMC's current stock of 20,020 bales, which were earlier bought by Amin. Mushtaq also paid the same amount -- Tk 46 crore -- for the goods.

The BJMC had to provide goods to both the buyers -- Amin and Mushtaq. Amin was given the stock and Mushtaq 20,020 bales from production.

Golden Fibre Trade Centre has exported jute goods worth Tk 600 crore to Sudan in the last five years.

Many BJMC officials told The Daily Star that the show off of power by two businessmen was badly hurting the state-run corporation's production and exports. The BJMC's exports are almost halted due to their feud, they said.

They said the fight is about who gets to control the production of the BJMC, which is the largest manufacturer and exporter of jute goods in the world. Presently, the BJMC runs 22 jute mills that have a capacity to produce 700 tonnes of jute products a day.

Asked Mirza Azam, state minister for textiles and jute, said he knows all these issues. He said the BJMC has made the sale order deals with Amin following due diligence.

“He [Amin] is a foreign buyer and there are some certain terms and conditions. If the BJMC failed to ship the goods, it might have faced a case or fine,” said the state minister.

On the allegations against Amin, he said the ministry was investigating those. Azam said being the consul general of Bangladesh, Amin has no right to work against Bangladesh's interests.

“The issue is now with the top level of the government. Probably, his consul generalship of Bangladesh to Sudan will be cancelled,” said the state minister.

The Daily Star also received emails and had an interview over phone with Amin.

“Mushtaq is using his political connections to cancel my purchase orders with the BJMC,” Amin told The Daily Star over phone early October.

On the allegation of working against Bangladesh's interest, the Sudanese said he has executed his duties in an honourable and professional manner.

But according to the letter Amin sent to different Sudanese companies and government agencies, including the central bank and the finance ministry, the allegations of working against Bangladesh's interests was not absolutely baseless.

The letter, which The Daily Star obtained, shows that Amin said rejection of imports from India and Pakistan was a clear violation of the law.

He also stressed the formation of a lobby in Sudan from the private and public sector to confront external monopoly through unified platform.

Bangladesh is the second largest jute producer with 12-14 lakh tonnes per year after India's 18-20 lakh tonnes, according to industry people. While, India has to import more to meet its domestic demand, Bangladesh exports around 70 percent of its annual production, mostly to India and African markets.

Sudan imports 1,50,000 to 2,00,000 bales of B Twill jute bags annually from Bangladesh.