The New Nation - Internet Edition

BoP down 85pc as food imports soar

BUSINESS REPORT

Country witnessed its balance of payments (BoP) declined in July-April to $140 million, down 85 per cent from the same period of last year due to soaring food and oil import costs, the Bangladesh Bank said.

Imports for July-April increased by more than 24 per cent from a year earlier, while exports increased 14.5 per cent, bringing the trade deficit to $4.65 billion from $2.97 billion in the same period of last year, the BB said.

The trade deficit widened mainly due to sharp rises in world prices of grains, including rice and wheat, as well as fertiliser and oil, a BB official said.

Natural disasters that hit the poor south Asian nation of over 140 million people last year destroyed nearly 2 million tonnes of rice, the country's staple, leading to a sharp rise in imports.

Officials said strong remittances from more than 5 million Bangladeshis working abroad helped offset the impact of the trade shortfall and kept the overall balance of payments in surplus.

Banks must make checks of transactions to prevent fraud: ICCB President tells at workshop in Dhaka

BUSINESS REPORT

Commercial crime is growing faster than international trade. Frauds are more complex and involve larger sums than ever before. New scams are constantly encountered. The trade finance system depends entirely upon documents. Substantial amounts of money can be paid out by banks, whose only obligation is to verify that the documents comply with the terms of the credit. Any system, which depends purely on documents, will be vulnerable to abuse by money launderers. Once credit complying documents have been presented and payments have been made, purportedly for an international trade transaction, the money thus released, would leave a documentary trail and, hence, facilitate the initial cycles of the wash.

ICCB President Mahbubur Rahman told these while inaugurating a day-long ICC workshop on 'International Fraud-Prevention, Control and Remedies' at the Bangladesh China Friendship Conference Centre in the city organised for the bankers in cooperation with the Mutual Trust Bank Ltd yesterday.

In most cases of documentary fraud, the banks, in one way or another lose. At the very least, the fraud will strain the relations between the bank and its customers or the correspondent banks in the letters of credit chain. The greatest danger though, to banks, is when they are financing a transaction where the buyers and sellers are in collusion, Mahbubur Rahman mentioned.

"It is our view that it is in the bank's own interest to ensure that they know precisely what activities their clients are asking them to finance. One way to do this is to make independent checks into the transactions, i.e., to authenticate the bills of lading and other documents presented under the documentary credit system. It is only through these independent checks that the banks can be sure that they are financing what their clients are declaring to them. There are ways to do this without conflicting with their liabilities under the UCP. In our view, it is just good prudent practice," Rahman told.

"We recommend to banks pick up bills of lading presented to them, at random, amongst their good and not so well known clients and have them checked at regular intervals. Such checks are done by the ICC International Maritime Bureau for their banking members, it was said by ICCB President that.

As a specialized bureau within ICC Commercial Crime Services (CCS), the Financial Investigation Bureau (FIB) also conducts enquiries and investigations into matters associated with money laundering, fraud and suspect documents.

Bangladesh has been growing fast in the international trade. Both import and export are increasing at substantial rate. As the international trade is growing all parties involved in the trade is also getting exposed to the risk of international trade finance fraud. The more the market of import-export is expanding the more we are facing the risk of unknown events including fraud. Although the number of attacks in Bangladesh has fallen, the area is still listed as very high risk. Pirates are targeting ships preparing to anchor. Most attacks are reported at Chittagong anchorages and approaches. While ICC rules, national and international laws/regulations are guiding the international trade, the parties involved in the trade need to get more conversant and acquainted with those rules/laws/regulations as well as they should have ideas/information about the fraudulent practices in international trade, ICCB President noticed.

ASM Quasem, Executive Board Member of ICCB said that the workshop would help to increase skill of professionals who are involved in international trade and enrich their knowledge how to prevent International Commercial Crime.

ICCB Secretary Ataur Rahman and P Mukundan, Director and Chief of ICC-International Crime Services, visiting expert from UK who conducted the workshop also spoke at the inaugural session.

Some 95 participants from banks, insurance, multinational companies, law firms and others big business houses attended the workshop. A similar workshop is going to be conducted by ICC Bangladesh in Chittagong on Sunday, July 27.

DBBL’s half yearly business meeting held: Increase of retail business by utilising on-line facilities urged

BUSINESS REPORT

Half yearly post closing discussion meeting of Dutch-Bangla Bank Limited (DBBL) was held yesterday at the Training Centre at Dilkusha in the city.

Md Yeasin Ali, Managing Director of the bank presided over the meeting.

The meeting reviewed the business performance of the bank for the half year ended on June 30, 2008 and focused on business strategy for the next half year keeping in mind the prevailing market situation.

The Managing Director stressed on a sound credit portfolio of the bank and gave emphasis on opening new accounts and procuring low-cost deposits.

He advised the managers to be more focussed on increasing retail business at their respective branches. He specially instructed the managers to utilise the bank's centralised on-line facilities and ATM network in mobilising retail business.

AHM Nazmul Quadir, Additional Managing Director asked the branch managers to develop relationship with the customers and urged them to lay more emphasis on increasing business volume, diversification of banking products and expanding non-funded business for achieving the targets of 2008.

KS Tabrez, Deputy Managing Director (Operation), Abul Kashem Md Shirin, Deputy Managing Director (Administration) also spoke on the occasion.

Branch Managers also took part in the discussion and expressed their commitments to achieve the business target for the year 2008.

New campus construction project of EWU inaugurated

STAFF REPORTER

East West University (EWU) inaugurated its new campus construction project on July 25 last at Aftab Nagar in the capital.

Jalaluddin Ahmed, President, Board of Directors of EWU formally inaugurated the construction work at the construction site.

East West University signed an agreement with Navana Constructions Limited on July 23 last on the new campus construction project at Aftab Nagar.

EWU authority also arranged milad and doa mahfil on the occasion. Shafiul Islam, Chairman of Navana Constructions Limited was also present.

Jalaluddin Ahmed, President of EWU-BOD, Dr Rafiqul Huda Chaudhury, Dr Saidur Rahman Laskar, members of Board of Directors, Professor Kamrul Hasan, acting Vice-Chancellor, treasurer, deans and faculty members were present on the occasion.

Followed by this programme, they took part in a tree plantation programme on the new construction area of EWU. It is expected that the construction work of the permanent campus at Aftab Nagar will be completed by June 7, 2011.

Best Air flies to Colombo, Male from tomorrow

BUSINESS REPORT

Best Air, the country's third private airliner, would start its direct flights on two new international routes --Colombo and Male-- from tomorrow (Monday).

"This is for the first time in Bangladesh that a private airline has introduced direct flights to Colombo and Male," M Haider Uzzaman, Chairman of the Best Air, told a press briefing in Dhaka.

"Best Air would launch its direct flight between Dhaka-Colombo and Dhaka-Male from July 28," he said.

"We have already received the permission from Sri Lankan Civil Aviation Authority and we will start our operation ahead of the SAARC summit," Haider Uzzaman said.

"Initially the lone Boeing 737-200, already in operation on Dhaka-Bangkok route, will be pressed on Dhaka-Colombo and Colombo-Male routes," the Best Air chairman said.

Director of Administration and HR Group Captain (Retd) M Alamgir, Director of the Regulatory Affairs Ali Reza Khan, Head of Engineering Department Jalaluddin Ahmed and Director of Marketing and Sales Farhad Hossain were present at the press briefing.

Haider Uzzaman said several thousands of Sri Lankan citizens are now working at the country's export processing zones and ready-made garments in Bangladesh.

Besides, several hundreds of students of the country are studying at several educational institutions, including the University of Science and Technology of Chittagong.

"Since there are no direct flights between Dhaka and Colombo, they have to come to Bangladesh via Bangkok or Singapore. Best Air's direct flight between Dhaka and Colombo appears to be as a blessing for the expatriate Sri Lankans living in Bangladesh," he said.

The Best Air Chairman also said several thousands of Bangladeshi nationals are now working in different sectors of Maldives. The Dhaka-Male flight of the Best Air will carry great significance for these expatriate Bangladeshis," he observed.

Best Air will operate its direct flights between Zia International Airport of Dhaka and Bandarnayeke International Airport of Colombo on Friday and Monday every week. The two-way flights between Dhaka and Colombo will cost US$800, while the two-way flights between Dhaka and Male will cost US$860. The Best Air's aircraft will directly reach Colombo and then left Colombo for Male.

The carrier, which launched its operation on the domestic route in the mid-January this year with a single Boeing 737-200, launched its first international operations on Dhaka-Bangkok route a month earlier.

The carrier is going to start the second and third international flights at a time when airlines across the world are cutting down their flights in the face of higher fuel costs.

Best Aviation started its journey in 1999 as helicopter operator and then started its operation as a Freighter Airline in 2000. It obtained license in 2006 from the Civil Aviation Authority to operate passenger service in the international and domestic sectors. The company launched its passenger fleet with Boeing 737-200, which was the first in Bangladesh.

Best Air, one of the five local carriers, came to share a slice of about 8 per cent growth in aviation industry, started its operation on the country's busiest domestic Dhaka-Chittagong route on January 14 this year with a single Boeing 737-200, but suspended its flights later to avoid losses against the backdrop of poor traffic and rising fuel costs.

It operates flight to Bangkok four days a week with the same Boeing.

The Best Air has already got the permissions to operate flights to Kolkata, Chennai, Malaysia, Kunming, Dubai, Bahrain and Kuwait. The aviation industry in Bangladesh has marked a boom with the launch of three private airlines in the last one year. Yet another is set to start commercial flights next month.

Banglalink serves customers within 10 minutes

BUSINESS REPORT

Banglalink started its journey three years ago with only 30,000 customers. Now it is the No.2 mobile operator in the country with over 8 million subscriber base.

Since its inception, banglalink tried its best to provide quality customer care service to its rapidly growing customer base. In order to do that banglalink has a state of the art call centre which serves its customers 24/7 everyday of the year. To cater to the customers' needs banglalink has established the largest network of customer service points spread all over the country.

A passionate team is vigilant in more than 700 customer care points to provide prompt and quality service. To highlight the customer care services, banglalink has launched a comprehensive campaign. banglalink's customer care campaign is promises towards its customers-'we are there for you--we promise.'

The new television commercial on customer care brings a new promise by banglalink to its customer. A customer care representative will attend to a walk-in-customer within 10 minutes on arrival. Carrot Communication has developed the concept for the customer care advertisement campaign and the television commercial was directed by Kislu.

The series of Banglalink Customer Care TVC have generated a huge hype, and has established banglalink's aim to provide excellent customer care to its customers.

IBBL opens up new dimension in banking sector

BUSINESS REPORT

A discussion and exchange of views meeting on 'Islami Banking and importance of Shari'ah Compliance' was held recently at branch premises organised by Islami Bank Bangladesh Limited, Highway Branch, Sherpur, Bogra. Moulana Zainul Abedin, Vice Chairman, Board of Directors of the bank was present in the meeting as the chief guest.

Presided over by Shafiqul Mawla, Senior Vice President and Head of Bogra Zone the meeting was attended by Md Shamsul Huda, Senior Vice President of Shari'ah Council and A.H.M Saiyedul Islam, Vice President of Bogra Branch as the special guests. Md. Anowarul Haque, Assistant Vice President and Manager of the branch delivered the welcome speech in the function.

Moulana Zainul Abedin said in his speech that Islami Bank Bangladesh Limited has opened up a new dimension in the arena of banking through establishing interest-free banking system against the conventional interest-based banking policy. Interest based financial system is a weapon of exploitation while interest free Islami economic is the only way to salvation. He urged all to work with integrity, sincerity and expertise to face the challenge against Islami banking.

He mentioned the praise worth role in achieving unprecedented success played by the clients, well-wishers, officials and staff of all segments of the Bank. He viewed that, their contribution will act as a locomotive towards the complete implementation of Islamic economy in the country.

BPC invites tender to sell 110,000 barrels of naphtha

BUSINESS REPORT

Bangladesh Petroleum Corporation (BPC) has invited a tender to sell 1,10,000 barrels of open-specification naphtha for September lifting, a BPC official said yesterday.

The tender will close on August 12 with validity up to August 18. The loading will be on a freight-on-board (FoB) basis from Chittagong from September 3 to September 6.

Earlier this month, the state-owned BPC, owner of the Eastern Refinery Ltd-the sole refinery of the country, sold through tender a similar quantity of naphtha to Singapore-based GPR Co Pte Limited at $130.35 a barrel early this month. A similar quantity is likely to be sold soon to the Singapore arm of Trafigura Pte as it made the best offer of $118.94 a barrel at a latest tender on July 22. The validity of the tender ends today (Sunday).

Flights between Maldives and Bangladesh to commence

AVIATION REPORT

Schedule fights will be operated between Maldives and Bangladesh from July 28 next, Maldives Transport and Contracting Company (MTCC) has said.

Dest Air is to operate twice a week between Dhaka and Maldives, MTCC the PSA revealed. Further the aircraft has a capacity of 117 seats and that aircraft will be operated Maldives and Bangladesh via Colombo.

Speaking to Miadhu Daily Manager of MTCC Adam Zaki said that the primary objective in operating the flight between the two countries to provide a cheaper alternative to the large number of Bangladeshi workers living in Maldives.