In a shocking revelation, a committee reviewing the labour and business conditions within Beximco Industrial Park has reported that Taka 12,000 crore in loans were taken out against 16 factories that do not actually exist. Brig Gen (retd) Dr. Sakhawat Hossain, the labour and employment adviser spearheading the advisory council committee, made the announcement during a press conference at the Secretariat on Thursday.
The committee, formed by the Government on 24th November 2024, aims to assess the impact of Beximco’s current financial woes on local industries and public life. Dr. Hossain confirmed that out of the 32 factories within Beximco Industrial Park, only 16 are operational. He noted that management has laid off workers from 12 existing factories, a move that he clarified was not sanctioned by the Government. Currently, only three Beximco factories are operational.
Beximco Ltd’s total bank debt exceeds Taka 40,000 crore, with Taka 29,925 crore attributed to the 32 factories in the industrial park. Alarmingly, Taka 23,285 crore of this debt is owed to Janata Bank alone.
In response to layoffs affecting nearly 40,000 workers across 15 apparel units due to a lack of work orders, employees and workers gathered on Tuesday at Gazipur’s Sreepur Mayanagar ground, demanding the reversal of layoffs and the reopening of factories. They threatened to block the Dhaka-Tangail highway if their demands were not met by 3 PM on Wednesday.
The committee has held five meetings to date, and during the first meeting on November 28, Janata Bank PLC agreed to cover three months’ worth of overdue wages for Beximco workers. Additionally, the Finance Department has allocated Taka 50 crore as an interest-free loan and Taka 10 crore from the Government’s central fund to assist the struggling company, bringing total Government aid to Taka 223.43 crore since September 2024.
Dr. Hossain emphasized that no banks are willing to extend new loans to Beximco, which is grappling with overwhelming debt. He also mentioned that the sale, lease, or transfer of Beximco’s industrial establishments is currently in process, as the company works to provide detailed reports on its assets, liabilities, and ongoing operations.
A meeting aimed at resolving Beximco’s financial crisis is set for 26th January, involving the labour secretary, ministry officials, and representatives from lending banks and financial institutions. A follow-up meeting is scheduled for January 28 to assess progress on liabilities and assets.
During the press conference, Dr. Hossain urged laid-off employees to remain patient and avoid actions detrimental to the country’s interests, assuring that those responsible for any vandalism would be held accountable. He expressed hope that workers would not engage in such activities.
In a separate press conference, Beximco workers reiterated their demands for the reopening of all factories within the Beximco Garments Division, restoration of banking services, and the payment of outstanding wages. The unrest escalated on Wednesday when agitated workers set fire to the factory of Grameen Fabrics and Fashion Ltd in Kashimpur, Gazipur, alongside several vehicles.
The situation at Beximco continues to develop as workers seek clarity and resolution amidst a challenging labour environment.
