Government Releases Tk 525 Crore To Settle Beximco Workers’ Dues2 min read
The government has disbursed Tk 525.46 crore to Beximco Group to clear outstanding dues of its terminated workers. The cheque was officially handed over by Labour and Employment Secretary AHM Shafiquzzaman to Beximco Group Managing Director Osman Kaiser Chowdhury at a ceremony held at the labour ministry, according to an official statement.
The funds were released by the finance division of the finance ministry after revising an earlier decision. Initially, the plan was to allocate Tk 325.46 crore from the finance division and Tk 200 crore from the labour ministry’s central fund. However, the entire amount was ultimately provided by the finance division, as the central fund is comprised of workers’ contributions.
Labour and employment adviser M Sakhawat Hussain stated in a press conference last week that the fund will be distributed to 31,669 workers and 1,565 officials. The allocated amount is a loan that Beximco Group must repay to the government after a stipulated period, according to Shafiquzzaman.
The loan was granted to prevent potential labour unrest in the garment sector, particularly ahead of Eid-ul-Fitr, due to terminations and non-payment of salaries and benefits. The government will reportedly begin disbursing payments on March 9, covering salaries up to February.
The 14 closed textile and garment units for which the payments are being made include Bangladesh Export Import Company (Head Office), International Knitwear and Apparels, Crescent Fashion and Design, Esses Fashions, New Dacca Industries, Escorp Apparels, Bextex Garments, Yellow Apparels, ShinePukur Garments, Beximco Fashions, Prefix Fashions, Crescent Accessories, Urban Fashions, and RR Washing.
Meanwhile, Beximco Group continues to operate four active units: Bangladesh Export Import Company (Factory), Beximco PPE, Escorp Apparels (Yellow Local Brand), and RR Washing (partially operational), according to company data.
Beximco Group has received over Tk 40,000 crore in loans from 13 banks, including Bangladesh Bank. The group owes Tk 23,285 crore to Janata Bank, Tk 1,424 crore to Sonali Bank, Tk 987 crore to Rupali Bank, Tk 420 crore to Agrani Bank, Tk 333 crore to United Commercial Bank, and Tk 315 crore to National Bank. Additionally, it owes Tk 938 crore to AB Bank, Tk 497 crore to Exim Bank, Tk 94 crore to Dutch-Bangla Bank, Tk 87 crore to the Bangladesh Infrastructure Finance Fund, Tk 78 crore to IFIC Bank, and Tk 61 crore to Global Islami Bank.
The government has announced plans to shut down the mills and factories before a committee evaluates the sale of Beximco Group’s shares and devises a strategy to recover the loans.
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