The New Nation - Internet Edition

BGMEA for halting fresh investment in RMG sector: Economists, experts, businessmen critical

Syful Islam

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has proposed the government for not allowing setting up of any more new garment factory in next three years, creating mayhem among the possible investors and experts.

Economists termed such proposal illegal and a move to bring monopoly in this business. They said such a move will obstruct new investment and raise number of unemployed people. Business leaders said this is totally contradictory to BGMEA's 'free market economy' culture and against industrialisation.

Last month BGMEA president Anwar-Ul-Alam Chowdhury Parvez in a letter titled 'No more new industry in the RMG sector' to Commerce Adviser Dr Hossain Zillur Rahman requested to stop any further new factory except the extensions of local, foreign and joint ventures.

He said, " Due to the shortage of skilled workers and mid-management personnel almost 25 per cent of factory capacities remain unutilised which is adding to the cost of production. On top of that, shortage of workers leads to uneven workers turnover and migration from factory to factory."

He said due to the high inflation rate income of people living below the poverty line has been eroded by 36.7 per cent meaning the real wages of workers have gone down. On the other hand, export prices of RMG products have been going down over the years. Such a two-way pressure on costs and prices is hitting the base of the RMG industry.

"On this backdrop, the wage level of workers does not commensurate with the desired level of productivity and thus black-holes are created in our competitiveness. So, the biggest challenge we facing is 'how to ensure future growth and stability in the sector," said BGMEA president.

Parvez said "We have been trying to get increased price from the buyers through individual efforts as well as through our association with the international MFA forum. The reality is that customers always insist to ensure compliance of factory level, but whenever we urge for price increase they remain silent.

"Considering all these fact we suggest that no new RMG factory should be permitted to start until our industry capacity is fully utilised which might take 3 years that will help us to build our required skilled workers and mid management," he said.

"We believe this will boost the existing size of the sector to run most efficiently as well as will give an indirect threat to the buyers to increase prices," Parvez added.

"If such step (no new factory) is taken by the government this will bring stability in the industry and would enable to achieve US$18 billion for which we do already have the production capacity," he observed.

Last week at an Iftar Part BGMEA president Parvez said only 5 per cent of the industry of around 4,000 factories fails to pay workers' wages and other social benefits regularly.

Parvez yesterday told The New Nation that the government should keep RMG as discouraged sector for the next three years. "New investments can come in this sector buying licences from the sick or existing factories," he said.

Meanwhile, economists and business leaders of the country has blasted the BGMEA proposal saying that this will create another 'syndicate' of profit mongering businessmen and the trade will go under the control of some people.

BGMEA director and former vice president Abdus Salam Murshedy said new investors should be welcomed in this business. The BMGEA move totally conflicts with free market economy where no business can be controlled.

"BGMEA has no right to bar anyone to come in RMG business," he said adding, this will put negative impact on industrialisation.

SM Fazlul Huq, Former president of BGMEA, said new investment will come with new idea and efficiency.

"Closing up of the doors and windows will not bring any good result for the industry. It is not possible to develop the industry with such illegal move," he said.

Another former president of BGMEA, who is now president of another big trade body, on condition of anonymity strongly criticised the BGMEA's move, which will create obstacles to industrialisation and employment opportunity in the country.

"Country's economy is now facing recession. The government is trying to increase industrial investment. How BGMEA can oppose new investment in RMG sector," he asked.

Criticising BGMEA's move noted economist Prof Abu Ahmed yesterday told The New nation that this move was totally illegal and against the country's law.

"This is not a good argument. BGMEA should not make any curtail," he said adding, there should be no impede on competitiveness.

General Secretary of Bangladesh Economic Association Prof Abul Barkat said there is no ethical or economical argument in BGMEA's hand raising such an issue.

"This move is totally based on monopolistic intention. Not the BGMEA, even the government has no right to regulate industrialisation," he said.

He said the country which has nearly 3 crore unemployed people cannot take any such decision that will halt new investment and consequent upon that no new employment.

BGMEA should train people and utilise them instead of asking for barring industrialisation, the economist observed.

McCain, Obama encounter on economy, war

John McCain and Barack Obama stand together onstage
at the first US presidential debate in Oxford, Mississippi
on Friday. AP photo

BBC Online

US presidential rivals Republican John McCain and Democrat Barack Obama have attacked each other over foreign policy and the economy, in their first debate.

Obama said a $700bn (£380bn) plan to rescue the US economy was the "final verdict" on years of Republican rule. He said McCain had been "wrong" on Iraq and tried to link him to President Bush. The Republican senator described his rival as inexperienced to lead.

Neither landed a knockout blow but polls suggested Obama did better.

An immediate telephone poll by CNN and Opinion Research Corp found 51% said Obama had won, to 38% for McCain.

A poll of uncommitted voters by CBS News found that 39% gave Obama victory, 25% thought John McCain had won, and 36% thought it was a draw.

Both campaigns claimed victory, with McCain's team saying their candidate had shown a "mastery on national security issues" while Obama's aides said he had passed the commander-in-chief test "with flying colours". Tens of millions of Americans were expected to watch the debate on TV, with only about five weeks to go before the 4 November elections.

Senator McCain said he did not need "any on-the-job training". "I'm ready to go at it right now," he added.

But Senator Obama said McCain had been "wrong" about invading Iraq and that the war had led the US to take its eye off the ball in Afghanistan, where it should have been pursuing al-Qaeda.

McCain argued that as a result of the "surge" - which involved sending some 30,000 extra US troops to Iraq - US military strategy was succeeding.

"We are winning in Iraq and we will come home with victory and with honour," he said.

The televised debate in Oxford, Mississippi, focused largely on foreign policy but began with discussion of the economic crisis gripping the US.

Speaking about the financial bail-out plan under discussion by the US Congress, Obama said: "We have to move swiftly and we have to move wisely."

McCain said he believed it would be a long time before the situation was resolved.

"This isn't the beginning of the end of this crisis," he said. "This is the end of the beginning if we come out with a package that will keep these institutions stable and we've got a lot of work to do."

McCain attacked Obama over his record on finance, saying he had asked for millions of dollars in so-called "earmarks" - money for pet projects - as an Illinois senator.

The Republican also suggested a spending freeze in many areas apart from defence, but Obama likened the proposal to using a hatchet when a scalpel was needed.

Both candidates agreed that the bail-out plan would put massive pressure on the budget of the next president and mean cuts in government spending.

Asked about Iran, McCain stressed that Tehran was a threat to the region and, through its interference in Iraq, to US troops deployed there.

He outlined a proposal for a "league of democracies" to push through painful sanctions against Tehran that were presently being blocked in bodies like the United Nations because of opposition from Russia.

He criticised Obama for his previously stated willingness to hold talks with the leaders of Iran without preconditions.

Obama rejected that criticism, saying he would reserve the right as president "to meet with anybody at a time and place of my choosing if I think it's going to keep America safe".

However, he said he agreed with his Republican rival that "we cannot tolerate a nuclear Iran" and the threat that that would pose to Israel, a staunch US ally.

'Safer today'

Mr McCain accused Obama of "a little bit of naivete" in his initial response to the conflict between Georgia and Russia.

"Russia has now become a nation fuelled by petro-dollars that has basically become a KGB [former secret services name] apparatchik-run government. I looked in [Russian Prime Minister Vladimir] Putin's eyes and I saw three letters - a K, a G and B," McCain said.

Speaking about the so-called war on terror, McCain said he believed the nation was safer than it had been the day after the 11 September 2001 terror attacks but there was still a long way to go.

Obama pointed to the spread of al-Qaeda to some 60 countries and said that the US had to do more to combat that, including improving its own image as a "beacon of light" on rights.

"One of the things I intend to do as president is restore America's standing in the world," Obama said.

McCain sought to distance himself from President George W Bush's administration, which has very low public approval ratings.

"I have opposed the president on spending, on climate change, on torture of prisoners, on Guantanamo Bay, on the way that the Iraq war was conducted," he said.

"I have a long record and the American people know me very wellt a maverick of the Senate."

McCain had earlier vowed not to attend the forum in Mississippi until Congress approved the economic bail-out plan, but he reversed his decision after some progress was made towards a deal.

Obaidul Kader barred from leaving country

Obaidul Kader

UNB, Dhaka

Awami League leader Obaidul Kader, now out of jail on bail, was yesterday debarred from leaving the country for India for medical treatment.

Awami League sources said he was scheduled to leave for New Delhi via Kolkata by Jet Airways at 9:20am for the treatment.

He reached the VIP lounge of the ZIA at 7:45 am after being taken out of Bangabandhu Sheikh Mujib Medical University (BSMMU) in a wheelchair and then boarded onto an ambulance. As he proceeded toward the immigration after collecting his boarding card, duty officers stopped him from taking the flight on the plea of having instruction from higher authorities.

When contacted, a senior official at the airport immigration told UNB that Obaidul Kader did not come to the immigration, but they heard that he came to the airport.

His lawyer Amin Uddin Manik in a press statement said Kader has secured bail from the High Court in all the five cases against him on medical grounds and was released on September 5.

On September 7, a medical board of BSMMU headed by Prof Anisul Huq advised him to receive follow-up treatment at Apollo Hospital in Delhi for splinters having pierced into his body.

After sustaining the splinter injuries from the August 21, 2004 grenade attacks at party rally, Kader received the treatment at the Delhi Apollo hospital under Dr Shusil Join. The doctor had advised him to have checkup every six months, but he could not do so for being imprisoned for more than 18 months.

Adv Manik said the Home Ministry was informed in writing about Kader' s treatment in Delhi on September 17, and he was verbally informed that there were no restrictions on his treatment abroad.

Kader said, "I am victim of political conspiracy." Adv Manik said there is no legal bar to his going abroad for treatment. He got bail in all the cases. "This is inhuman and unfortunate," he said.

The lawyer hoped that the government would permit him soon for his treatment in the Indian capital. "Otherwise, he may be crippled permanently."

Back from the airport, Kader was again admitted to BSMMU.

Kader, a former state minister of the 1996-2001 AL government, is among many former ruling politicians, bureaucrats and business tycoons arrested during the post-1/11 crackdown on graft suspects.

Politicians set for pre-poll campaign

Rafiqul Islam Azad

Political leaders who look forward to participating in the forthcoming general elections had started preparations to celebrate the holy Eid-ul-Fitr in their respective constituencies, it is learnt.

They have started purchasing zakat gifts including sari and lungi for distribution among the voters who are poor.

Thus, the Eid-ul-Fitr is expected to generate election campaign tempo all over the country, senior political leaders told The New Nation yesterday.

Awami League Presidium Member Amir Hossain Amu said the political leaders usually celebrate major religious festivals in their respective constituencies and they have already started going to their own areas.

However, he observed, this time a festive mood is prevailing across the country as the December 18 parliamentary polls are coming closer.

BNP Chairperson's Adviser Brig Gen (Retd) ASM Hannan Shah told The New Nation that the political leaders intending to take part in the coming polls would celebrate the Eid-ul-Fitr in their respective constituencies.

Asked whether there was any party instruction in this regard, the outspoken BNP leader said no instruction is required; rather the intending candidates are going their village homes willing to celebrate the holy occasion with their relatives and voters.

"You (journalists) can find out that zakat cloths are being sold in plenty," he said.

President of Communist Party of Bangladesh (CPB) Manjurul Ahsan Khan said like previous times, he would celebrate the Eid-ul-Fitr in his constituency at Islampur in Jamalpur district.

"I always maintain communication with the grassroots level people, particularly of my area and enquire about their sufferings. Our party also believes in maintaining contacts with the people," he said.

Jamaat-e-Islami Assistant Secretary General Muhammad Kamaruzzaman, now visiting his constituency in Sherpur, told The New Nation over telephone that it is nothing new to celebrate the religious festivals with the people in the respective areas.

"Rather, the Jamaat-e-Islami has a common instruction to its leaders to maintain contact with the people in their respective areas whether there is any election or not," he observed.

Private varsities oppose proposed ordinance: Quality education to suffer

Staff Reporter

Leaders of the Association of the Private Universities of Bangladesh (APUB) yesterday called upon the government not to approve the proposed 'Non-Government University Ordinance-2008' immediately fearing that it would hinder the growth of private university.

They made their demand at a press conference held at Dhaka Reporters Unity in the city.

M. A. Kashem, Chairman of APUB read out written statement at the press conference. Vice President of APUB Abul Quasem Haider and Prof M Alimullah Miyan, Vice-Chancellor of International University of Business Agriculture and Technology addressed the press conference.

Addressing the press conference, MA Kashem alleged that the new ordinance has imposed many restrictions on the growth of private university instead of incorporating specific proposals for the improvement of education in the private universities.

He claimed that 51 private universities in the country have been offering qualitative education which is better than public universities.

When asked to explain his opposition to the proposed ordinance, Kashem fumbled to give specific reasons.

To a question that some private universities were selling certificates of higher education in exchange for money, Abul Quasem Haider said the Ministry of Education should take action against such universities.

Alimullah Miyan alleged that The University Grants Commission (UGC) through the cancellation of existing laws on non-government universities through ordinance-2008 wanted to negate the autonomy and independence of non-government universities.

Abolishing the requirements set out in the 1998 act for foreign universities in the new ordinance is nothing but a plea to serve interest of foreigners and make Bangladesh as a ready market recruitment of students by countries like Australia, Canada, UK, USA, Malaysia, India and many other countries, he added.

BNP election preparation after Eid: Khaleda

Staff Reporter

BNP chairperson and leader of the four party alliance Begum Khaleda Zia said yesterday that her party would start preparation for the upcoming parliamentary elections after Eid-ul- Fitr.

"BNP will participate in the elections and we are going to start mass contact as well as the nomination process after the Eid festival," she said while talking to the journalists at an Iftar Mahfil jointly hosted by Bangladesh Federal Union of Journalists (BFUJ) and Dhaka Union of Journalists (DUJ) at the auditorium of the Jatiya Press Club yesterday.

Replying to a question on the election Begum Zia said a positive atmosphere regarding the election is prevailing in the country.

She also said discussion will also be held with the components of the four party alliance on the election strategy.

Begum Zia conveyed her greetings and felicitations to the people of the country on the eve of the Eid festival and wished their continued peace and prosperity.

It was also attended, among others, by Kondoker Delwar Hossain, Secretary General, M Shamsul Islam and Lt. Gen. (Retd) Mahbubur Rahman, standing committee members , MK Anwar, former ministers and Rizi Ahmed, office secretary of BNP, Ali Ahsan Mohammad Mujaheed, Secretary General of Jamaat-e- Islami Bangladesh, Shawkat Mahmud, President and Kamal Uddin Ahmed Sabuj, General Secretary of Jatiya Press Club, Ruhul Amin Gazi, General Secretary of BFUJ, Abdus Shahid, President and Mohammad Baker Hossain, General Secretary of DUJ, Jaglul Ahmed Chowdhury, Managing Director and Chief Editor of Bangladesh Sangbad Sangstha (BSS), Golam Tahaboor of UNB, Alamgir Mohiuddin, Editor, The Neya Diganta, Reazuddin Ahmed, Editor, The News Today, Mostafa Kamal Majumder, Editor, The New Nation, Abdul Asad, Editor, The Daily Sangram, AAM Bahauddin, Editor, The Daily Inqilab, Amanullah Kabir, Ataus Samad, Acting Editor, The Amar Desh, SMA Faiz, Vice Chancellor (VC) of Dhaka University.

Meanwhile after attending the programme at Jatiya Press Club, BNP Chairperson went to the Mazar of Shaheed President Ziaur Rahman. She offered munajat. She was accompanied by party leaders.

Building collapse: 20 stranded Pakistanis trapped

Staff Reporter

One of the corridors of an abandoned WAPDA building, adjacent to the Journalists' Colony at Mirpur in the city, collapsed yesterday trapping about 20 members of five families into their rooms.

At least 101 stranded Pakistani families have been living in this dilapidated building since independence.

A 20-foot passage on the 3rd floor of building collapsed at about 10:40am blocking the exit of the inhabitants.

On information, firefighters rushed to the spot and tried to rescue the trapped members. But they refused to come out in fear of losing their shelters.

Special Officer of the fire unit Syed Monirul Islam said the firefighters repeatedly requested the trapped members to get out of the building, but they did not respond till 12:30pm. "Where will we go after leaving this building?" said one of the trapped people. The firefighters finally succeeded in bringing out of the building.

President of Urdu-Speaking People Youths Rehabilitation Movement (USPYRM) Md Sadakat Khan told reporters that the building was declared abandoned eight years ago.

He regretted that government did not construct a new building for sheltering the 101 families and that is why they refused to leave the building without the assurance of their alternative rehabilitation.

Polls participation: Four-party meets today

Staff Reporter

The BNP-led four-party alliance is going to hold a meeting today at BNP Secretary General Khondoker Delwar Hossain's NAM flat residence in the city.

The secretaries general level meeting of the four-part alliance would discuss participation in the forthcoming parliamentary elections on December 18 and expansion of the alliance.

A senior BNP leader told The New Nation yesterday that the meeting will formally decide whether the alliance would take part in the coming parliamentary polls and the necessity of expansion of the alliance further.

The BNP and its allies welcomed the Chief Adviser's address to the nation declaring the date for parliamentary elections, but they are yet to take a decision if they are going to the December 18 polls.

Zia Orphanage graft case: Khaleda likely to be chargesheeted

UNB, Dhaka

Former Prime Minister Khaleda Zia is likely to be charge-sheeted in yet another graft case, as the Anti-Corruption Commission is scrutinizing the investigation report of the Zia Orphanage Trust graft case filed against her, Tarique Rahman and five others.

The investigation report of the Zia Orphanage Trust graft case has been submitted to the anti-graft watchdog with recommendation of charge-sheeting

the former premier and her eldest son Tarique and others.

"Investigation officer Harunur Rashid, an ACC deputy assistant director, has submitted the memo of evidence (investigation report) of the Zia Orphanage Trust graft case. And the Commission is scrutinizing the report," a competent source told UNB.

Replying to a question, the source said the investigation officer in its report has recommended pressing charges against Khaleda, Tarique and others.

Without providing the exact number of individuals recommended to be charge-sheeted, the source said the investigation officer has proposed dropping one or two accused from the case. He also recommended inclusion of a former bureaucrat in the charge sheet, as his involvement was found during the investigation.

Responding to a question, the source confirmed that those recommended to be charge-sheeted include Khaleda, Tarique, a former BNP lawmaker and a relative of the Zia family.

In reply to a question, the source said the Commission has already

sat to discuss the case and likely to approve it soon.

With the approval of the submission of charge sheet in the case, the ACC will have approved charge-sheeting Khaleda in all four graft cases it filed against her. Following the Gatco and Niko cases, the Commission Thursday approved the submission of charge sheet in the Barapukuria case. Charge-sheets in the Gatco and Niko cases have been submitted quite some time ago.

Both Khaleda and Tarique are now out of jail on bail in all the cases, including the Zia Orphanage Trust one, filed against them.

On July 3 this year, the ACC filed the Zia Orphanage Trust case against then detained former Prime Minister Khaleda, her eldest son Tarique Rahman and five others for alleged embezzlement of money that was meant for spending on the welfare of orphans.

The case was filed with Ramna police station, accusing the seven of misappropriating or abetting in defalcation of Tk 2.1 crore from the orphans' funds.

Late President Ziaur Rahman's nephew Mominur Rahman, former BNP MP Kazi Solimul Haque, Syed Ahmed, Gias Uddin Ahmed and Sharfuddin Ahmed have also been implicated in this latest graft case.

The case was filed under sections 409/109 of the Penal Code, section 5(2) of the Prevention of Corruption Act 1947 and section 15 of the Emergency Powers Rules 2007.

This was the fourth graft case filed against the immediate-past premier and BNP chairperson amid a clampdown on former ruling politicians in the present interim period.

This was, however, the first case, since the January 11, 2007 changeover, where both Khaleda and Tarique were co-accused. Earlier, Khaleda was charged along with her youngest son Arafat Rahman Koko in the Gatco case.