A state advisory council convened yesterday but reached no consensus on the potential sale of 16 textile and garment factories owned by Beximco Group. The council emphasised the need for further examination of bank statements before deciding.
The proposed sale is intended to help Beximco Group settle nearly Taka 50,000 crore in outstanding bank loans, over half of which has been classified as non-performing, according to data from Bangladesh Bank as of last November.
Sakhawat Hussain, the adviser to the Ministry of Labour and Employment, highlighted inconsistencies in the loan figures and default amounts in the financial documents provided by the group’s state-appointed administrator and various banks. To gain clarity, a meeting with senior officials from five to six banks has been scheduled for 27th January, Hussain, who is also the council’s convener, reportedly shared.
During the meeting held at Bangladesh Secretariat, the council reviewed strategies for selling the 16 factories located in Beximco Industrial Park in Gazipur, with a preference for foreign buyers. However, the substantial loan amounts have deterred potential investors, Hussain noted.
Beximco Industrial Park, which previously employed 42,000 workers and officials, has seen 27,000 layoffs from the 16 factories. This decision followed the removal of the Sheikh Hasina-led government on 5th August of last year, with management citing a decline in work orders from international clothing retailers and brands.
Salman F. Rahman, the group’s vice chairman and a former adviser to the ousted Prime Minister, is currently in custody. Hussain assured that the advisory council is committed to ensuring that every laid-off worker receives their entitled benefits. Efforts are underway to identify transparent methods to raise and distribute these funds, which may take additional time.
Given the skilled nature of the workforce, the Government is exploring job opportunities for them in factories affiliated with the Bangladesh Export Processing Zones Authority and Bangladesh Economic Zones Authority, Hussain explained.
In response to the situation, workers from Beximco Industrial Park are planning to demonstrate outside the park, according to Tariqul Islam, an administrative executive at Beximco Group. They aim to advocate for the continued operation of the 16 factories, asserting that these units are profitable and have pending orders from reputable global retailers.
Amirul Haque Amin, president of the National Garment Workers Federation, echoed this sentiment, suggesting that the Government should focus on keeping these factories operational while considering the sale of less profitable segments of the group to address the bank debts. He also called for the appointment of capable administrators to manage the textile and garment operations effectively.
