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Wednesday, November 30, 2011

PMO castigates civil servants for flouting govt Rules of Business

 Nazmul Ahsan

Top bureaucrats of the government in many cases are found to violate the Rules of Business of the administration including the areas pertaining to financial matters, noted the Prime Minister's Office (PMO).


Principal Secretary to the PMO Sheikh Md Wahid-uz-Zaman sent an instruction last week to all ministries and divisions of the government asking them to follow the Rules of Business strictly in order to establish good governance and financial accountability.


The directive from the PMO categorically mentioned the areas and proposals which require mandatory approval of the Prime Minister, the Ministry of Finance and the inter-ministerial meetings.


"In some cases, responsible high officials do not comply with the regulations of Rules of Business. The officials concerned sometimes create an unwarranted situation by violating the principles of financial guidelines causing serious problems for the overall governance," reads the directive of the PMO.


The instruction observed the practice could create both financial and administrative disorder in the country.


Sources at the Cabinet Division said a good number of top civil servants of many ministries are not aware of the rules and regulations included in the Rules of Business of the government.


They said matters relating to international organisations, world bodies, agreements and treaties, have to be dealt with only by the Ministry of Foreign Affairs (MoFA) as stipulated in the Rules of Business, but a number of ministries and divisions are directly maintaining contacts with foreign sources bypassing the MoFA.


On the other hand, when it comes to the issues of transit, transshipment and the use of Chittagong port by a number of sub-regional countries, some ministries of the government have made communications with the regional countries concerned, sources said.


Besides, a number of ministries, including the Ministry of Communications, often send lists of projects to multilateral lending agencies and bilateral donors for assistance. According to Rules of Business, the Economic Relations Division, under the Finance Ministry, is supposed to make communications with the donors.


A high official at the Cabinet Division said even many secretaries of the government are not aware of the regulations of financial authority resulting in a situation that lacks transparency in public procurement.


"The high officials including secretaries of the government should be imparted training in the government's Rules of Business, Public Procurement Rules and details of regulations of the government concerning financial authority," a government secretary told the FE.


He said a serious absence of concentration on the part of the bureaucrats has led to a grave situation when it comes to governance.


Source: thefinancialexpress-bd.com


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Tuesday, November 29, 2011

25 hurt in DCC staff-police clash

 25 hurt in DCC staff-police clash
A law-enforcer hurling a piece of brick to disperse the Dhaka City Corporation (DCC) staff at the Nagar Bhaban during a clash Sunday. ? Banglar Chokh FE Report

Officials and employees of the Dhaka City Corporation (DCC) observed three-hour pen down strike Sunday to protest the government move of splitting the local government body.


Besides, at least 25 people, including policemen, were injured in a clash between the DCC staff and the law-enforcers during the strike.


Police and witnesses said the trouble erupted at about 11:05am when the DCC officials and employees tried to enter the Nagar Bhaban with a procession to express their solidarity with the protestors.


One employee was allegedly beaten by the police. As the news spread, the angry employees engaged in chase and counter chase with police and also exchanged brickbats, thus turning the area into a battlefield.


Being chased by the riot policemen, the furious DCC staff attacked the law-enforcers, who took position outside the main entrance of the Nagar Bhaban. The staff threw brickbats to them, protesting the police action.


The wounded DCC employees and policemen were taken to Dhaka Medical College Hospital (DMCH), Rajarbagh Police Lines Hospital, and other healthcare centres for treatment.


The road in front of the Nagar Bhaban was closed for a while, as the clash continued for some 15-20 minutes. The entrance to the Bhaban was closed by the protestors.


The protestors alleged that the police attacked them all on a sudden while they were peacefully observing the three-hour work abstention.


"The policemen were sent only to foil our reasonable movement. At least 20 of our colleagues were injured in the police aggression," said Abdul Latif, member secretary of the DCC Officials and Employees Unity Council, the organisation that had called the protest.


The union leader warned the government of launching tougher movement in the coming days, if the plan of dividing the DCC into two parts is not scraped.


"The government move is not acceptable at all," he said, demanding immediate action against the policemen responsible for the violence.


However, deputy commissioner of police (Ramna division) Krishnapada Roy said the clash broke out when the protestors tried to put barricade on the road. As the police intercepted, the protestors hurled brickbats at them, resulting in injuries to 10-12 policemen.


Assistant commissioner of Ramna zone S M Shibli Noman said the demonstrators became violent and started throwing brickbats to the law-enforcers, prompting them to retaliate.


The police official also added that they would not allow any such troublemaking in the city.


Meanwhile, the DCC councillors have condemned the police action and demanded immediate punishment of the responsible policemen. Most of them have also expressed their solidarity with the aggrieved employees.


Source: thefinancialexpress-bd.com


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SEC Reihenfolge auf Direktoren Beteiligung an börsennotierten cos erinnert an gemischte Reaktion

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Siddique Islam and Mohammad Mufazzal

Directors of most listed companies have expressed their mixed views on an order of the securities regulator relating to the holding of minimum 30 per cent stakes of any listed company by its sponsors/directors.

A section of directors of the listed companies have termed the order 'impractical and illogical,' saying that a good number of directors, particularly those of banks and financial institutions, may lose their directorship because of the order.

Others have, however, welcomed the order and said that it would help boost the country's flagging stock market.

On November 22 last, the Securities and Exchange Commission (SEC) issued an order making the holding of 30 per cent of shares of a listed company by its sponsors/directors mandatory. The acquisition of such shares would have to be completed within next six months. The order has been sent to the Bangladesh Government Printing Press for publication as a Gazette notification.

According to the order, individually each of the directors, other than independent ones, of any listed company must hold a minimum of 2.0 per cent shares of the company's total paid-up capital, and in total the directors will have to own, at least, 30 per cent stake.

The SEC's latest move was a part of a series of measures announced by the SEC last Wednesday to help revamp the stock market.

Directors of different listed companies welcomed the SEC's latest move, saying that it would help bring back the much-needed stability in the country's stock market.

"Raising the quota of directors' holding will help prop up the stock market by increasing the demand for specific companies shares," former Chairman of the Bangladesh Insurance Association (BIA) AKM Rafiqul Islam told the FE.

He also said the SEC should have introduced such rules much earlier to ensure stability in the country's stock market.

"Directorship is not a permanent thing. It's a transferable phenomenon," Mr. Islam said while replying to a query.

Welcoming the decision, some market observers said this requirement on the part of the sponsors/directors to hold a minimum of 30% of paid-up capital of a company to plug the holes that create the scope for hybrid types of "insider trading" and "share-price manipulations". However, some other observers said that the SEC should make a detailed probe into the matter and legal actions should be taken against such wheeler-dealers if such cases of irregularities, flouting the laws of the land, are unearthed on a substantive basis.

The secretary of a leading listed company considers the SEC move a right one to bring a positive impact on the market in the near future. But he also said most of the listed companies will face difficulties in implementing the order within such a short period.

"It will be very tough to comply with the SEC order within six months," the company secretary said, adding that the directors particularly of companies having large paid-up capital might fail to comply with the order.

"The sponsors/promoters and directors holding less than 30 per cent shares must acquire the rest amount with six months of issuance of this notification," the SEC has said.

Besides, each director other than independent ones of any listed company will hold a minimum 2.0 per cent shares of the paid-up capital, otherwise there will be a casual vacancy of director, it warned.

Some of the directors of different companies have however opposed the move, saying that the SEC move will create an adverse impact on the overall financial sector.

They also raised questions about the legal authority of the SEC regarding issuance of a notification relating to the imposition of stake-holding quota on the listed company directors.

"The SEC should issue a clarification specifying the positions of sponsor-directors, sponsor-shareholders and directors of a listed company," former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Abdul Awal Mintoo told the FE.

Mr Mintoo, who is holding directorship in a number of listed companies, also said the percentage of holding shares will be determined in line with the existing company act.

Talking to the FE, Chairman of the Social Islami Bank Limited (SIBL) Kamaluddin Ahmed said the SEC rules will cause a negative impact on the financial sector through losing of directorship.

"The rule is impractical. It will not be possible to implement by listed companies, particularly the big ones in term of paid-up capital, including commercial banks and non-banking financial institutions," Mr Kamaluddin said.

He also said more than 50 per cent of the directors of banks and financial institutions may lose their directorship because of a large huge financial involvement will be needed to implement such rules.

In a bank having not less than Tk 5.0 billion in paid-up capital, a director will need to have shares worth of Tk 100 million at face value to retain his or her directorship, he said, adding that the market value of the 2.0 per cent shares would be around Tk 400 million or more.

"In most cases, it will be impossible on the part of directors," the SIBL chairman noted.

"We'll comply with the SEC order as well as we will look into the existing bank company act. If there exists any conflict than we will seek legal opinion," Chairman of the City Bank Limited Aziz Al Kaiser told the FE without elaborating.

The SEC has issued the directive against the backdrop of offloading of bulk of their holding by a section of directors without caring about the market.

"We've imposed restriction on selling shares by sponsor directors on September 21 last to avoid such situation in the market," a SEC senior official told the FE.

He also said the SEC lifted the restriction after issuing on November 22, the latest notification relating to holding of shares by the directors.

"In India, the sponsors and directors hold a minimum 20 per cent of the total equity of their respective shares for three years from the date of their listing with the stock exchanges," the SEC official said.

"We've taken the latest move aiming to make the directors much more accountable to their companies," he said, adding that it will also help to ensure discipline in the country's corporate sector including, those relating to, among others, banks, NBFIs and insurance companies.

The notification also said any individual, holding shares amounting to five per cent or more of the company's paid-up capital, will be eligible for becoming a director in its next annual general meeting (AGM) in case of, what the notification said, casual vacancy of director(s) for non-holding of the required amount of shares.

"If the sponsors/directors of any listed company fail to hold the aforesaid amount of shares, the respective company would not be able to declare right shares and raise capital through repeat public offering (RPO)," the notification noted.

Currently, the sponsors/directors of 54 listed companies including six state-owned enterprises and eight commercial banks, out of a total of 232 listed companies in the bourses, own less than 30 per cent of shares of their respective paid-up capital.

According to available DSE data, the sponsor-directors of In Tech Online own 2.56 per cent shares, Beximco Pharma, 3.48 per cent, Fu Wang, 5.04 per cent, Apex Adelchi Footwear, 5.19 per cent, Kay and Que, 5.22 per cent, Agni System, 5.29 per cent, Eastern Bank, 6.73 per cent, Dulamia Cotton, 7.68 per cent, Uttara Bank, 8.19 per cent, Fine Foods, 8.40 per cent, Apex Tannery 8.84 per cent and Meghna Life Insurance 9.61 per cent as of October, 2011.

The sponsors/directors of such companies owned between 19 and 50 per cent stakes in the paid-up of their companies in 2006, reflecting, what the analysts pointed out, the off-loading of a considerable amount of their shares until now. Most such off-loading of shares did take place during the bull period of the market in 2010, according to some market insiders.

Besides, the sponsors/directors of Aziz Pipes own 10.86 per cent, Pubali Bank, 10.98 per cent, Bangladesh Industries, 12.18 per cent, United Airways, 12.44 per cent, City Bank, 12.88 per cent, Beximco, 13.45 per cent, Monno Ceramic, 15.52 per cent, BGIC, 17.29 per cent, Green Delta Insurance, 17.77 per cent, AB Bank, 13.90 per cent, First Lease Finance and Investment, 17.85 per cent, BD Thai Aluminium, 17.92 per cent, Active Fine Chemicals, 18.23 per cent, Fu Wang Ceramic, 19.20 per cent, Monno Jute Stafflers, 19.39 per cent, Karnaphuli Insurance, 19.52 per cent, Information Services, 19.54 per cent, Monno Jutex, 20.29 per cent, BDcom Online, 21.29 per cent, Salvo Chemical Industries, 22.69 per cent, National Polymer, 22.73 per cent, Social Islami Bank, 22.96 per cent, Confidence Cement, 23.47 per cent, Al-Haj Textile, 24.02 per cent, Mercantile Insurance, 24.79 per cent, Fareast Islami Life, 24.98 per cent, Deshbandhu Polymer, 25.00 per cent, Makson Spinning, 25.44 per cent, Sinobangla Industries, 25.98 per cent, Metro Spinning, 26.21 per cent, Southeast Bank, 27.22 per cent, Beacon Pharma, 27.27 per cent, National Bank, 29.20 per cent and Continental Insurance, 29.96 per cent, according to the DSE data.

Currently, the listed companies whose sponsors/directors own maximum stakes in paid-up capital include, among others, Berger Paints (95%) in miscellaneous sector, National Housing Finance and Investment (90.38%) in financial institution sector, Grameenphopne (90%) in telecommunication sector, Marico Bangladesh (90%) in pharmaceuticals and chemicals sector, Gemini Sea Food (83.08%) in food and allied product sector, Glaxo SmithKline (81.98%) in pharmaceuticals and chemicals sector, RAK Ceramics (80.65%) in ceramic sector, Rahim Textile (80.17%) in textile sector, Summit Alliance Port (80%) in service and real state sector, Malek Spinning (75%) in textile sector, Khulna Power (75%) in fuel and power sector, Singer Bangladesh (75%) in engineering sector, RN Spinning Mills (66.14%) in textile sector, BSRM Steels (65.52%) in engineering sector, Bangladesh Lamps (61.03%) in engineering sector and BOC Bangladesh (60%) in power and fuel sector, according to data available from the DSE.

According to a rough reckoning of market sources, the fulfillment of the minimum requirement on the part of sponsors/directors of the listed companies to hold 30 per cent of the paid-up capital to retain their sponsorship/directorship will involve, at least, an aggregate amount of Tk 50 billion at current market prices.

However, this amount may rise or fall, depending upon the ups-and-downs of stock prices in the market. All such shares by the sponsors/directors will have to be bought from the secondary market to comply with the terms and conditions of the SEC's notification to retain the statues quo about their present position in the listed companies concerned.

The involvement of the funds for such directors/sponsors will be larger for big cap companies than that of small cap ones.


Source: thefinancialexpress-bd.com


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Energy coop to dominate Dhaka-Yangon talks

Nizam Ahmed

Cooperation in energy sector is likely to dominate bilateral talks between the prime ministers of Bangladesh and Myanmar during their meeting in Yangon early next month, officials said on Saturday.


Sheikh Hasina will visit Yangon from December 5 to 7 on an invitation from her Myanmar counterpart U Thein Sein, to strengthen bilateral cooperation in all possible fields and remove irritants between the two close Asian neighbours.


"The visit is also important as the International Tribunal for the Law of the Sea (ITLOS) of the UN is set to give a ruling in the middle of the next year on a maritime boundary dispute between the two countries," a senior official of the foreign ministry told the FE.


The ITLOS heard both the countries in September last on their respective claims on certain gas-blocks in the Bay of Bengal, he said. When its ruling comes, it will also be effective on a similar maritime-boundary dispute between Bangladesh and India.


However, ITLOS may also accept any sort of amicable settlement among the disputing countries, if there is any, senior diplomats said citing previous settlements of disputes between other countries.


"Every subject of possible cooperation in all fields and removal of all disputes would be discussed between the two prime ministers," Abul Kalam Azad, press secretary to PM Hasina told the FE.


"Shopping for natural gas seems to be the first priority of the visit though no formal agreement is likely to be signed now," said an executive of an international energy firm in Dhaka.


Bangladesh expects to put forward its intention to buy natural gas at the market price from Myanmar, which recently started tapping the natural resource from a large gas field in Rakhine state (formerly Arakan), near Bangladesh, an official of the ministry of power, energy and mineral resources said.


Bangladesh has been running short of 500 million cubic feet (mmcft) of gas against its requirement for 2.5 billion cubic feet.


The shortage keeps several gas-fired power plants out of generation, leading to, at least, 2,000 mega watt deficit during the peak-hours, when the demand shoots up to 7,000 mw, officials of the Bangladesh Power Development Board (PDB) said.


Bangladesh will assess the possibilities for setting up a power plant there and taking lease of arable land for cultivation, another government official said.


However, Myanmar did not reply to such a proposal about leasing out land to any foreign country for cultivation in Arakan. Such a proposal was earlier put forward by the immediate past army-backed caretaker government of Bangladesh.


Setting up of direct air and shipping links, easing procedures for issuing business visas of the respective countries and introduction of other facilities for banking and financial transactions will also be discussed, foreign ministry officials said.


On political issues, Dhaka will also request Yangon to repatriate all of its registered and unregistered Rohingya Muslim refugees from the country where they have been languishing for decades.


There are some 28,500 registered refugees in two camps, run jointly by the government of Bangladesh and the United Nations High Commission for Refugees (UNHCR).


They are remnants of some 250,000 Rohingyas who fled Myanmar, alleging persecution by the then ruling military junta there in 1992.


Most of them were repatriated under the management of UNHCR. Meanwhile, some 300,000 Rohingyas -- mostly economic refugees -- intruded into Bangladesh and are living in scattered groups, causing multi-faceted socio-economic problems in the country.


Source: thefinancialexpress-bd.com


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Monday, November 28, 2011

Dhaka-Berlin economic ties to get momentum

 FE Report

Dhaka-Berlin economic relations are expected to get a new momentum with the three-day visit of German president Christian Wulff to Bangladesh beginning from today (Monday), traders and officials said.


Though no specific deal will be signed during the visit, it will have a favourable impact on bilateral economic and political relations between the two countries, diplomats said.


"It (the visit) is a visible positive sign of deepening of strong political and economic partnership between two friendly countries," a source in the German embassy in Dhaka told the FE.


President Christian Wulff will be the second German president to visit Bangladesh following that of Von Weizsucker, as far back as in 1986, well before the fall of the Berlin Wall.


"Through the visit Bangladesh will have a fresh positive exposure not only in Europe but also in the rest of the world," an official of the foreign ministry said.


President Zillur Rahman will receive the President of the Federal Republic of Germany at Hazrat Shahjalal International Airport when he will arrive by a special flight.


Both the presidents will have a meeting on Tuesday.


Prime Minister Sheikh Hasina and Foreign Minister Dipu Moni will call on the President of the Federal Republic of Germany (FRG) before he delivers a lecture at the Dhaka University the same day.


Furthermore, the FRG President will have meetings with representatives of the civil society and different faiths at the Goethe-Insititut, Germany cultural institution.


The overall bilateral trade, in value terms, between Germany and Bangladesh stood at euro 2.8 billion in 2010 calendar year. The trade balance is largely in favour of Bangladesh which exports mostly ready-made garments to Germany.


German exports, mainly chemicals and capital machinery, to Bangladesh are also growing.


The country's businesses say Bangladesh's exports to Germany will further rise in the coming days as different German shipping companies have started buying ships, built in Bangladeshi shipbuilding yards.


As a leading member of the European Union (EU), Germany offers duty- and quota-free access for Bangladesh goods under the EU's "Everything but arms" policy for the least developed countries (LDCs).


German machinery exports to Bangladesh witnessed a 100 per cent increase over that of the previous year. Germany is the second largest export market for Bangladesh, business sources said.


Source: thefinancialexpress-bd.com


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Investors again take to streets as DSE dips

 FE Report

A section of angry investors again took to the streets at Motijheel in the city Sunday as the Dhaka Stock Exchange (DSE) experienced yet another massive fall despite announcement of the stock market rejuvenation package by the securities regulator.


The Securities and Exchange Commission (SEC) unveiled the stock market rejuvenation package Wednesday.


"But all positive steps to rejuvenate the capital market are yet to leave positive impact on the market. Rather, the falling trend has disappointed many investors," brokers said.


At the end of four-hour trading, the DSE General Index (DGEN) plunged 308.12 points or 5.73 per cent on the day to close at 5,065.17 while the turnover value stood at Tk 4.51 billion.


The losers thrashed the gainers as out of 254 issues traded, only seven advanced and 247 declined.


The frustrated investors came out of different brokerage houses and gathered in front of the DSE main gate at about 2:00 pm when the DGEN fell by more than 200 points.


They chanted slogans against the DSE president, the Bangladesh Bank governor and the finance minister for their failure to bring back stability in the market.


The leaders of the Bangladesh Share Investors Unity Council (BSIUC) staged a demonstration and brought out a procession protesting against the share price fall.


They also threatened to organise a 'grand rally' on December 7 in front of the DSE, if the government fails to bring back normalcy in the stock market within 72 hours.


The investors alleged that some big market players and gamblers might have a role behind the fall in share prices and urged the government to take effective steps immediately.


They also urged the SEC to investigate whether foul players are involved in the unusual share price fall and save the capital market from the claws of vested quarters.


BSIUC President AKM Mizan-Ur-Rashid Chowdhury said, "Though the government announced a 21-point stock market rejuvenation package to stablise the market, a group of vested quarters are trying to make the market volatile and buy shares at a lower price."


Later, they brought out a procession which marched from the DSE office to Shapla Square.


However, vehicular movement from Shapla Square to Ittefaq intersection was normal as additional police personnel cordoned off the whole area and brought the situation under control without any untoward incidents.


Yawer Sayeed, managing director and CEO of AIMS of Bangladesh, an asset management company, told the FE, "Though the government has taken some positive steps, the retail investors do not show their patience."


"The retail investors should behave rationally as the government took all positive steps to stablise the market," said Mr Sayeed.


"The measures the government has taken will take some time to come into effect; it's a reality. But our investors do not keep patience and are panicked which is very unfortunate," commented Mr Sayeed.


AB Mirza Azizul Islam, former finance adviser to the caretaker government, told the FE: "There is no valid reason for market fall as the government took a series of positive steps to stablise the market."


The investors should be rational and make their investment in fundamentally strong shares, Mr Islam, also a former chairman of the SEC, said.


Institutional investors were almost inactive ahead of wrapping up their accounts in the year-end closing which was also a cause for the market fall, he said.


However, he said, the banks may go for fresh investment in January-February.


"Relaxation of various rules in the rescue package to encourage greater participation of banks in the market seemingly did not materialise as yet with the trade value dipping below Tk 5.0 billion," said a stock broker.


On the contrary, a combination of aggressive profit-taking and tendency of traders to stay in the safe zone amidst uncertainty relating to the country's macro-economic condition led to the massive fall, he added.


Source: thefinancialexpress-bd.com


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Tuesday, November 8, 2011

Govt invites applications for selecting int�l investors

The government has invited applications for investors' prequalification with a view to selecting potential international investors to finance the second Padma Multipurpose Bridge at Paturia-Daulatdia point, reports UNB.

Bangladesh Bridge Authority (BBA) under the Communications Ministry issued the international notice on November 3.


The proposed bridge will be constructed on public-private partnership (PPP) basis with an estimated cost of Tk US$ 2 billion, according to the Communications Ministry officials.


The second Padma Bridge project, if implemented, will establish direct road communications from capital city to western and southwestern part of the country as well as with Benapole land port.


The government thinks the bridge will boost commercial and trading activities between east and southwest regions of the country, and will create additional employment opportunities in agriculture, traditional crafts, small scale industries and commerce to help attain higher economic growth.


According to the notice, the project investors will be selected through an International Competitive Bidding process from a pool of applications who meet the criteria.


The interested investors will have to submit their application for prequalification by January 10, 2012.


Source: thefinancialexpress-bd.com


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Monday, November 7, 2011

Sales picking up in city, Ctg cattle markets

Transactions in the city's cattle markets started picking up Saturday with traders and buyers expressing their mixed opinions over the prices of sacrificial animals.


Customers turn up in the makeshift cattle markets in large number and sacrificial animals were also plenty this year in comparison to that of last year. Last year the cattle market faced a debacle due to Anthrax scare.


Many traders did not sell their cows until afternoon on Saturday with the hope of getting better price during nighttime or last moment sale while buyers were also keeping on bargaining over prices to win over the traders.


"I have been trying to sell my cows for the last two days but I could not as the possible profit is not up to my expectation level", said Anwarul Alam who brought seven cattle from Chuadanga- his home district.


While talking to the FE at Gabtoli cattle market, Anwarul said he was hopeful that he would be able to sell all the cattle on Friday. But it did not happen. The customers were moving from one corner to another to survey the price.


He said one more day in the market means wastage of at least Tk 1000 for per cattle.


He said the cost of cattle rearing had considerably increased over the last few years keeping pace with the inflation as well as high price of fodder. But the prices of cattle head quoted by the city dwellers are not satisfactory", said Anwarul with his utter frustration.


Malek Bepari, who came from Kurigram with 20 sacrificial animals, said he bought the cattle 6 months back and spent about Tk 15,000 per cattle for fattening up those with the hope of gaining a good frofit.


He said the prices of wheat-bran, oil-cake, molasses, pulses and broken rice and straws are very high this year.


A medium-sized cow was hiked Tk 50,000 on Saturday which was also sold at Tk 50,000 last year, said Alauddin Mia, who brought five medium -sized cows in the market and sold three of them. "Though prices of fodder and other things went up, cattle prices remained the same as of last year." he said.


Meanwhile, buyers, who have been visiting the city's different markets for the last several days, claimed that the cattle price is very high this year.


On a visit to city's Taltola, Gabtoli and Nayabazar cattle markets it was found that middle class people were cautious in buying sacrificial animals for budget constraints.


Humayun Kabir, a paper businessman of Nayabazar told the FE that this year traders are hiking price much higher than that of the previous year. "The price of a cattle head which is hiked Tk 40,000 this year was not more than Tk 30,000 last year." he said.


The price of goats is, however, not so high this year. The quoted price of a big -sized goat was between Tk 20,000 and Tk 40,000. Last year goats had very high demand due to Anthrax disease.


"I am charging Tk 50,000 for my goat as I have already got Tk 35,000 for the same -sized goat in Pabna," said Asadullah who came from Pabna with 10 goats at Gabtoli market.


Meanwhile, it is learnt that a lot of trucks loaded with cattle head are still on way to Dhaka. The trucks are delayed for the gridlock on Dhaka-Tangail and Dhaka-Mawa highways.


Samad Ali, a hassil (Toll) collector, said the new arrival will influence price in the cattle market.


A good number of law enforcers including elite force Rapid Action Battalion (RAB) were seen in the cattle market to safeguard the traders.


Our Chittagong correspondent adds: Cattle markets in the city found an aggressive sale as the sellers eased prices of cows primarily from North Bengal districts after several days of declining demand without expected number of buyers.


All major cattle markets including Bibirhat, Sagorika and Alangkar, Pahartali, Karnafuli third bridge markets saw heavy rush of buyers and their brokers today with only one day left for Eid-ul-Azha.


"More than fifty per cent of sacrificial cows and goats were sold on a single day today at all markets in the city," said Jalal Ahmed, an employee of Chittagong City Corporation, responsible for overlooking the markets.


Until Friday the sale of sacrificial animals was very poor as the buyers resorted to 'wait and see' for a chance to avail the reasonable price, sellers said.


Much to the woes of traders the cows were selling at prices of Tk 10-15 thousand lower than expected. A medium-large cow from Kushtia that was expected to draw Tk 75,000 Friday afternoon at the Alangkar cattle market was sold at Tk 62,000 Saturday morning, a trader said.


Big size bulls sold at Tk 65,000 while medium-size ones at Tk 40,000 today. Some buyers bought cows from Rangunia, Raozan and Fatikchhari in north Chitagong and Satkania and Banshkhali of the south at much favourable prices. Local varieties are selling cheaper than those from north Bengal, they said.


Traders said they are facing loss in the business this year primarily due to high cost of cattle feeds and excessive transport cost and traffic jam on the highways from north Bengal to Chittagong.


Security measures by the law enforcement agencies have been taken in all major markets with sufficient number of cops in temporary police control rooms.


Bangladesh Bank, district administration and the City Corporation authority and almost all private and state-owned scheduled banks have set up fake note detection booths at the cattle markets.


Both buyers and sellers have expressed satisfaction at deployment of police forces and fake notes detection counters in a great number.


Apart from major cattle markets there are so many street markets set up temporarily this year which also have drawn a number of buyers to avoid paying prescribed tolls.


Chittagong City Corporation is conducting all major cattle markets in the city and has fixed toll on sale at the rate of 5 per cent or Tk 50 against Tk 1000.


"All five markets on both sides of the Alangkar Road and two markets at the adjacent Sagorika area under Pahartali in the city experienced a dull day with virtually no sale Friday," said Ashraful Islam, a trader from Kushtia.


Islam said he brought 20 big-sized cows from Kushtia on November 1 but sold only three until Friday and 11 Saturday conceding loss of around Tk 10,000 on each.


According to his estimate the number of sacrificial cows at those seven markets was not less than 0.15 million and 70 per cent of those were from Kushtia and the rest were brought from Natore, Faridpur, Chapainababganj, Faridpur, Sirajganj and a few from India.


Smaller varieties from Kushtia and a bit larger varieties from India found a good demand, they said. The bulls from northern districts attracted buyers but they failed to purchase as the sellers demanded exorbitantly high price until Friday.


Indian bulls of the same size sold out at 20 per cent less than those of Kushtia but some buyers said they took less interest in Indian varieties because the bulls from Kushtia and Natore were more handsome and fit for sacrifice.


"Colour and health of most of the Indian cows are not that attractive compared to those from Kushtia. But they cost too high. We will see until today (Sunday) as there is an adequate supply of cows from those areas," local buyer Fazal Ahmed told this correspondent Friday afternoon.


Source: thefinancialexpress-bd.com


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Hasina-Manmohan talks at Male Nov 10

AppId is over the quota
AppId is over the quota
Prime Minister Sheikh Hasina and Indian Prime Minister Manmohan Singh will hold bilateral meeting on the sidelines of the 17th South Asian Association for Regional Cooperation (SAARC) summit at Addu, Male on November 10, report agencies.

The meeting will be held at Shangri-La's Villingi Resort, nearly three hours ahead of the formal inauguration of the summit of the eight South Asian nations.

This will be the second top level interaction between the two leaders of Bangladesh and India within three months.

Meanwhile, Indian foreign secretary Ranjan Mathai Saturday confirmed that the meeting would take place on the sidelines of SAARC summit.

He told journalists in New Delhi that the two prime ministers would review the bilateral relations and discuss ways to boost regional cooperation.

Asked if the two prime ministers could touch upon the thorny bilateral issues like sharing of water of common river Teesta and transit links between mainland India and its northeastern states through Bangladesh, Mathai said that Hasina and Singh could hold discussions on the tasks left 'unfinished' during the latter's tour to Dhaka on Sep 6 and 7.

According to the joint statement issued after the meeting between Singh and Hasina in Dhaka, the two neighbours agreed to work together to further strengthen SAARC, including expanding areas of cooperation, and as partners in achieving the full implementation of all existing projects and agreements of the bloc.

New Delhi and Dhaka had long been negotiating a deal on Teesta and the two countries were about to sign an interim agreement during Singh's visit to Bangladesh.

But West Bengal chief minister Mamata Banerjee's decision not to accompany Singh to Dhaka held the issue back as she differed with India's central government on the Teesta issue, forcing New Delhi to postpone the signing.

Banerjee is understood to have conveyed to the Congress-led United Progressive Alliance government in New Delhi that she would not endorse a deal that would hurt the interests of the people of West Bengal, which is largely dependent on the common river for power generation and irrigation.

Meanwhile, officials with knowledge of the proceedings said that the conclave, which would be attended by the leaders of the eight South Asian nations, would culminate in signing of four agreements covering establishment of a SAARC seed bank, multilateral arrangement on recognition of conformity assessment, rapid response to natural disaster and implementation of regional standards.

The SAARC member states are also expected to adopt a charter of democracy in the summit.


Source: thefinancialexpress-bd.com


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Sunday, November 6, 2011

Will the 17th SAARC summit in Maldives be action-oriented?

The 17th SAARC summit in the Maldives beginning next Thursday is expected to take up a number of issues like the "climate change" which are critically important for the eight-member regional forum. It is expected that the member-countries of the South Asian Association for Regional Cooperation (SAARC) will spare no efforts to turn the 26-year-old forum more action-oriented towards the avowed goal of collective cooperation. Leaders of all the member-nations are scheduled to attend the two-day conference. It will review the progress made since the last summit in Bhutan and seek to explore new areas of cooperation while strengthening the fields where cooperation is delivering the benefits.


The Indian ocean island state of the Maldives, although small in size and population, has hosted the SAARC summit twice before; but it is for the first time that the nation is organising the event under a democratic government. President Mohammad Nasheed is the first democratically elected leader of the country under the multi-party system. He has pledged to make the summit an effective gathering that would help accelerate the pace of cooperation in the region. Several member-countries including Bangladesh are assisting the Maldives in hosting the big event and some "Observers" of the SAARC have also extended their hands of cooperation for the successful staging of the next SAARC summit.


Indeed, it is praiseworthy since the smallest member of the forum is holding the summit with great interest, despite its manifold limitations. The Maldives had done fairly well earlier in staging the SAARC summit when Mamoon Abdul Ghyaoom was the president as he took immense interest in the growth and development of the regional forum, even though his nature of governance lacked democratic practices. While that is an internal matter of a member-state, it is expected that the 17th summit under a democratic dispensation in the Maldives will be more vibrant and action-oriented.


True, the SAARC since its inception at the first summit in Dhaka in 1985, has come a long way in a region bedeviled by political divides, on one hand, and resource constraints, on the other. But cynics say the forum has largely failed to accomplish the desired objectives mainly for the reason that it has not been able to function smoothly, mainly again for the political problems among the member states. Such views are not entirely baseless as problems between its two players at the centre of the regional spectrum -- India and Pakistan -- have often adversely affected the forum. Besides, political differences among other member nations also played a negative role at times -- albeit on a much smaller scale.


But it will be unkind to ignore the achievements of the SAARC that has identified and developed cooperation in diverse fields ranging from food security to sports and culture. These feats may not be very remarkable, but not small either when considered that south Asia is also known internationally for political and other crises that clearly impede the progress and development. Of course, paucity of fund has always been a retarding factor -- impeding the process of the expected growth of the forum. Nonetheless, the SAARC has delivered benefits to its member states in a variety of areas, apart from instilling an aroma of fellowship and fraternity -- the differences notwithstanding.


It is also true that many important areas like the trade and commerce could not make desirable progress in a spirit of cooperation since some member states looked askance at each other's "intentions" or at times driven by self-interest. But this is a positive sign that such contentious issues could also largely be thrashed out, even though the process took time and somewhat unnecessarily. One notable aspect about the SAARC is that the spirit of collective spirit has so far triumphed, mostly belying the negativities.


For instance, Pakistan, just on the eve of the coming SAARC summit, has announced "most favoured nation" treatment to India in trade and commerce and this has come as a pleasant surprise to many. This has come close on the heels of Islamabad's election as a member of the United Nations Security Council (UNSC) when New Delhi, already a member of the UNSC, extended support to its arch traditional rival. This development also raised eye-brows in some quarters. But the bottom line is that all these are done in a commendable spirit. Probably, the SAARC ambience is contributing to the healthy conditions. Unquestionably, this attitude is praiseworthy.


Needless to say, much of the SAARC success is contingent upon the cooperation and cordial ties among the these two members of the forum. Their major problems are too vexed and defies on easy resolution, but broad friendly relations would definitely help the SAARC.


The summit in the Maldives will take up some very critically important issues like the "Climate Change" that are inextricably linked with the vital interests of several members including the host itself. The Maldives faces the threat of most -- its most parts may go under the sea at one stage because of this dangerous climate change. Other matters aimed at socio-economic uplift of the nearly 1.5 billion people living in south Asia should also receive greater attention of the summit.


Undeniably, the millions in this region are mired in abject poverty. Hopefully, the SAARC would be more dynamic cutting across the political and other divides and come, at least, close to fulfilling the goals of the forum that has been so assiduously grown and nurtured despite myriad obstacles and limitations. Let us wait for the emergence of a more action-oriented SAARC from the coming summit.


E-mail: zaglulbss@yahoo.com


Source: thefinancialexpress-bd.com


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Terrible gridlocks cause untold sufferings to home-goers

A terrible gridlock brought immense sufferings for the home-goers who were going by buses to their village homes to celebrate the Eid-ul-Azha with their near and dear ones in northern and southern districts of the country.


Train accidents that occurred due to travelling of passengers on roofs led to death of eight home-goers, sources said.


Md Hossain Rana, a private bank official, had been waiting since Saturday morning for his fixed bus of National Paribahan to go to his village home in Rajshahi.


Talking to the FE Saturday at 5.0pm he said that in his eight years of Dhaka life, he never experienced a hassle like this.


He was passing an awful time along with his wife and infant child.


Most of the home goers who began journey to their villages and hometowns to celebrate the festival with families faced an immense suffering caused by a gridlock of nearly 75 kilometres.


The worst sufferers were those who were on the way towards north-Bengal and south-Bengal -- Rangpur-Rajshahi divisions and Khulna division.


Shortage of food, water and sanitation facilities made their journey terrible, especifically for women.


Our Tangail correspondent writes: Since Saturday morning hundreds of passenger buses and cattle carrying trucks remained inert on both sides of the highway starting from Nandan Park at Kaliakoir of Gazipur to Elenga of Tangail.


The 75 kilometres traffic jam on the busy Dhaka-Tangail highway has been causing immense suffering to homebound people two days ahead of the festival, he said.


He said many women and children were forced to leave their buses and go to nearby houses beside the highway for sanitation.


Thousands of homebound people were suffering from lack of water and food.


Considering the movement of the vehicles, which were almost stand-still, the inhabitants whose houses were in Tangail, left the buses and began to go on foot even though the distance was 10 kilometres to 15 kilometres.


According to the Bus-Truck, Motor Owners Association, nearly 22,000 vehicles in 21 routes ply on Dhaka-North-Bengal and Dhaka South-Bengal highways, but during the Eid festival, the number of vehicles increases three to four times.


That causes the gridlock, the Association office said.


Bangladesh Railway (BR) officials said they were facing hardship to carry the large numbers of extra passengers during Eid.


Our sources at Bogra and Tangail said, at least eight people died after falling off the roofs of two trains in Bogra and Tangail on Friday night and Saturday.


They were going to their village homes to observe the festival with their families. After failing to collect tickets they were forced to climb on the train roof.


In Bogra, four passengers riding on the roof of Ekota Express (Dhaka-Dinajpur) were hit by an iron structure of Halhaliya Bridge at Adamdighi in Santahar upazila of Bogra district Saturday noon, they said.


Four people died and three were injured after falling off the roof of a moving train in Mirzapur upazila in Tangail district Friday night, sources said.


Officials at Kamalapur rail station told the FE that against its capacity of issuing around 12,000 tickets a day, the station faced demand for several thousand tickets every hour nowadays.


According to BR, 278 trains run throughout the country carrying about 30,000 passengers daily and every year it carries three to four times more passengers during the Eid period using its maximum capacity.


On visiting the Sadarghat (Dhaka launch terminal) area the FE correspondent found every launch was overloaded with a large number of passengers.


The launches were delaying for hours to leave towards the costal regions, passengers claimed.


Rashedul Karim and his family had been waiting for nearly six hours at Sadarghat to go to his home in Barguna district by MV Salauddin Launch on Saturday.


Talking to the FE he said, the authority was not responding to their query on the time when the launch would leave.


He said the launches are carrying three to four times more passengers than usual.


He said he had been waiting for five hours but his fixed launch was yet to come.


A high official of Bangladesh Inland Water Transport Authority (BIWTA) said the capacity of the water transports for Barisal and other coastal regions is nearly 40000 passengers per day.


But nearly 0.2 million people are thronging the launch terminals before Eid and launch numbers have also been increased, he said.


Source: thefinancialexpress-bd.com


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Eid-ul-Azha tomorrow

Eid-ul-Azha tomorrow
The holy Eid-ul-Azha, the second biggest religious festival of the Muslims, will be celebrated across the country tomorrow (Monday) with due solemnity and religious fervour, reports BSS.

On this day, the 10th of Zilhajj some 4,000 years ago, Prophet Hazrat Ibrahim (AS) offered to sacrifice his beloved son Hazrat Ismail (AS) who willingly submitted to the will of his father to please Allah. But the Almighty in His benign mercy spared Ismail (AS) and instead sent a ram to be sacrificed.


To commemorate this historic event, the Muslims all over the world slaughter sacrificial animals and draw inspiration from the unique example of sacrifice to please Allah as shown by two great prophets-Hazrat Ibrahim (AS) and Hazrat Ismail (AS).


All preparations have been completed for celebrating the festival in a befitting manner.


The day's programme will begin with the offering of Eid prayers by millions of Muslims at mosques and eidgahs throughout the country.


They will seek divine blessings of Almighty Allah for peace, progress and prosperity of the country and welfare of the Muslim Ummah. They will also visit the graves of their near and dear ones to pray for eternal peace of the departed souls.


The prayers will be followed by sacrificing of animals.


On the occasion, President Zillur Rahman and Prime Minister Sheikh Hasina greeted the countrymen and the Muslim Ummah through separate messages.


Leader of the Opposition Khaleda Zia, leaders of different political parties and sociocultural organisations also greeted the people on the occasion.


In his message, President Zillur Rahman called upon all to follow the teachings and ideals of the holy Eid-ul-Azha in daily life.


"The future generations would have to be inspired with these teachings and ideals," he added. The President said the profound obedience and boundless adoration shown by Prophet Hazrat Ibrahim (AS) to Almighty Allah in fulfilling His desire is unique in the world.


He wished the holy Eid-ul Azha to bring welfare for all.


The Prime Minister in her message said the grand instance set by Hazrat Ibrahim (AS) by sacrificing his dearest thing for satisfaction of Allah will be imitated and followed for ever.


"Through the festival, the capable Muslims ensure equality for all and practise compassion by distributing meats of the sacrificial animals among relatives and neighbours," she said.


The Prime Minister called upon the countrymen to build a discrimination-free happy and prosperous Bangladesh by participating in people-oriented activities as well as realising the essence of Eid-ul- Azha.


Source: thefinancialexpress-bd.com


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Saturday, November 5, 2011

MoF rejects fund proposal to repair Bangabandhu Bridge

The Ministry of Finance (MoF) has rejected a proposal of the Ministry of Communications to make an allocation of Tk 2.42 billion for the purpose of repairing the Bangabandhu Bridge due to fund constraints, official sources said.


As an alternative, the finance ministry has asked the communications ministry to increase the rate of existing tolls collected from the users of the Bridge to mobilise required fund for repairing the cracks developed on the bridge, constructed in 1998.


Finance Minister AMA Muhith rejected the proposal on Wednesday last and asked the communications ministry to devise a strategy to enhance the rate of existing toll by at least 40 per cent.


"Our minister (Muhith) has refused to sanction Tk 2.42 billion as sought by the communications ministry to repair Bangabandhu Bridge as the government cannot afford to provide extra amount of money now to any government agency from the revenue budget," a high official in the MoF told the FE.


He said the communications ministry has in the meanwhile spent almost full amount of money earmarked for them in the revenue budget. Besides, no disbursement can be made against any project from the development budget if it is not included in the Annual Development Programme (ADP), he added.


The communications ministry in mid October sought the fund from the MoF out of the revenue budget of the government.


Officials in the finance ministry said, the bank borrowing of the government is on the rise and if the trend continues the borrowing of the government would overshoot the annual target by next month.


"We will communicate our decision to communications ministry soon asking them to arrange fund on its own," another finance official said.


"We are in favour of enhancing the existing rates of toll by 40 per cent to help the ministry arrange the required fund itself," he added.


Meanwhile, a high official in communications ministry said, the Bangabandhu Bridge is in a poor shape now. A good number of cracks are visible on the bridge and the cracks might widen, making the Bridge risky for movement of vehicles if the same are not repaired immediately.


On increasing tolls, the official said the rates of toll were revised upward in last September and any further increase is not possible now.


According to the new rates, the toll ranges between Tk 40 and Tk 1400 per vehicle, depending on the types of vehicles using the Bangabandhu Bridge.


Source: thefinancialexpress-bd.com


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2m Muslims perform Hajj

2m Muslims perform Hajj
MOUNT ARAFAT: Muslim Hajj pilgrims say Asr prayers at the Nemra mosque near Mount Arafat Saturday. ? AFP photo MOUNT ARAFAT, Nov 5 (AFP) : More than two million Muslims gathered Saturday on Saudi Arabia's Mount Arafat and its surrounding plain, marking the peak day of the hajj, the world's largest annual pilgrimage.

Dressed in white garments, the pilgrims filled the Namera Mosque in Arafat and the nearby streets and camps for collective prayer, led by Saudi Arabia's top cleric, Sheikh Abdul Aziz al-Sheikh.


"Islam is the solution for the problems" of Muslims, he said in a speech before the prayer began, warning the faithful of "a media and cultural invasion that seeks to weaken (their) faith."


He urged Muslims to solve their problems "without interference from their enemies," condemning those who want to "provoke hostility between you and your leaders."


This year's hajj coincides with the Arab Spring democracy protests that have swept many nations in the region and led to the ouster of the autocratic leaders of Tunisia, Egypt and Libya.


Saudi Arabia has been spared the unrest despite small-scale, sporadic Shiite-led protests that took place in its Eastern Province, which the Sunni-majority kingdom quickly controlled.


Source: thefinancialexpress-bd.com


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Thursday, November 3, 2011

DSE seeks SEC nod to apply T+2 cycle

The Dhaka Stock Exchange (DSE) has sought the regulator's permission to revise the settlement period of stocks transaction for implementing the reduced T+2 cycle, officials said.


The move came after the Securities and Exchange Commission (SEC) took a decision on October 18 to reduce the settlement cycle of transaction of shares, except the 'Z' category shares, to T+2 from the existing T+3, following a proposal made by both the bourses.


On October 25, the DSE board decided to implement the reduced settlement cycle (T+2) after restoration of normalcy in the market.


However, the country's premier bourse later turned from the decision and took initiative to implement the reduced settlement cycle. The DSE sent a letter Monday to the SEC, seeking its permission to revise Section 8 of the Settlement of Stock Exchange Transactions Regulations 1998. After publishing a gazette notification by the SEC, the DSE will revise the regulation regarding the settlement cycle and implement the T+2 cycle.


Presently, investors are allowed to sell shares of 'A', 'B' and 'N' categories on the fourth day of purchase in accordance with the T+3 trading cycle. On the other hand, 'Z' category shares can be sold on the tenth day of purchase as per the T+9 cycle.


After the implementation of the T+2 cycle, the investors will be allowed to sell their shares on the third day of purchase.


Source: thefinancialexpress-bd.com


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Wednesday, November 2, 2011

Scrap money-whitening facility for stock investors

The Financial Action Task Force (FATF), a global body to combat money laundering and terror financing, has asked the government to scrap the existing money whitening facility offered to the country's stock investors.


The FATF has said Bangladesh may be identified as a "risky country" such as North Korea in global financial transaction if the government fails to drop the provision immediately


A plenary meeting of the FATF, held in Paris on October 27-28, made the recommendation against the facility, which has been offered by the government in the budget for the current fiscal in an effort to boost the flagging stock market.


A three-member delegation, headed by Deb Prasad Debnath, General Manager, Anti-Money Laundering Department, Bangladesh Bank, represented the country in the meeting.


"We faced strong criticism from FATF and its influential members from European countries for offering money whitening facility in the capital market," a delegation member, told the FE on Monday.


"The FATF has asked us to scrap the scheme to avert being listed as one of the risky countries in the world like North Korea for financial transaction," the delegation member added, requesting anonymity.


He said a high-level team of FATF would visit the country in November and discuss the issue with the government.


The FATF has decided to refer the controversial scheme to International Cooperation Review Group (ICRG), a specialised professional body under the global task-force, before "blacklisting" Bangladesh, a government official said.


The FATF later disclosed the outcome of the meeting in its report.


'The FATF heard a report on the voluntary tax compliance (VTC) programme in Bangladesh (which has been enacted since July 2011 and is currently scheduled to complete in June 2012), and its possible negative impacts on AML (Anti-Money Laundering)/CFT measures in the country," the report said.


"The FATF also heard an update from the APG on the reviews and actions that it has taken in relation to this issue," it said.


"As there are concerns about the potential impact of the VTC programme on the effective application of the FATF standards, the FATF decided to refer consideration of the VTC programme to the ICRG, in the context of its ongoing process concerning Bangladesh," the report, posted in its website, added.


In his budget speech, the finance minister said no question will be asked from any agencies including tax department if anybody invests his or her undisclosed money in the capital market paying a 10 per cent tax against the whitened amount.


But following strong reservation from the FATF, the government brought some amendments to the offer in August, empowering some agencies excepting the tax department to question or investigate the sources of undisclosed money.


However, the effort failed to cool the FATF concerns.


"We could not satisfy the FATF despite the changes in the original offer. It seems the FATF has taken a strong position against the existing facility on the money whitening offer," said a finance ministry official.


The FATF is an inter-governmental body whose purpose is to develop and promote policies, both at national and international levels, to combat money laundering and terror financing.


The Task Force is a "policy-making body" which works to generate the necessary political will to bring about national legislative and regulatory reforms, the official added.


Earlier, Financial Action Task Force (FATF) in a report in 2010 said Bangladesh is still non-compliant in at least 10 key areas in attaining international standard against money laundering and terror financing.


The government had formed a National Coordination Council, headed by Finance Minister AMA Muhith, to implement the recommendations of FATF to combat money laundering.


The government finalised an Action Plan early last year outlining measures to combat the money laundering as recommended by FATF and Asia Pacific Group (APG) on Money Laundering.


The major areas included in the action plan are bringing amendments to Anti Money Laundering Act 2009 and Terrorist Financing Act, 2009, including the issues of anti-money laundering and terror financing in the existing Extradition Act, enacting Mutual Legal Assistance Act and ratifying the UN Convention against Transnational Organised Crime (Palermo Convention) and ratifying the UN Security Council Resolutions, 1267 and 1373.


A senior official in the finance ministry said, the finance minister is concerned over the latest development.


He, however, said if the money-whitening facility is withdrawn, it could cause widespread dissatisfaction in the capital market, which the government cannot afford under the prevailing circumstances.


Source: thefinancialexpress-bd.com


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Signing of IGA with Russia on N-power plants today

The government will sign an inter-governmental agreement (IGA) with Russia today (Wednesday) for construction of two nuclear power plants with a capacity of 1,000 megawatts (mw) each at Rooppur in Pabna.


"All is now set for signing the IGA with Russia in Dhaka to construct the country's first nuclear power plant," State Minister for Science and Information & Communication Technology Yeafesh Osman told the FE Tuesday.


Under the proposed IGA, Bangladesh will initially construct one 1,000 mw nuclear power plant with Russian assistance, said Mr. Osman.


There will also be provision for building another 1,000 mw nuclear power plant under the IGA, he said.


Director General of Russian State Atomic Energy Corporation (Rosatom) Sergey Kirienko will sign the IGA on behalf of Russia, while Yeafesh Osman will sign the deal for Bangladesh.


Prime Minister Sheikh Hasina will attend the IGA signing ceremony, to be held at her office in the morning.


"We are going to sign the IGA with Russia to move forward as per plan building the nuclear power plants," the minister said.


The work on installation of the first plant will begin in 2012 as per plan, he added.


Construction of the nuclear power plants will help ensure availability of electricity at affordable cost.


The government has planned to build the Rooppur nuclear power plant as part of its mega plan to generate 20,000 mw of electricity by 2021, said the state minister.


Bangladesh's overall electricity generation is now hovering around 5,000 mw against the demand for over 6,500 mw.


"The government wants to complete construction of at least one 1,000 mw nuclear power plant by 2018," Bangladesh Atomic Energy Commission Chairman ASM Firoz said.


It might cost around US$ 1.5-$2.0 billion to build the power plant, he said.


Bangladesh has planned to build the nuclear power plants utilising the latest available technology ensuring safety and security as the topmost priority, he said.


Earlier on February 24 last, Bangladesh and Russia initiated an agreement to install the nuclear power plant at Rooppur in Pabna, some 200 kilometers off Dhaka city.


Bangladesh also signed a five-year framework agreement with Russia in May 2010 followed by a memorandum of understanding (MoU) in 2009 for building the Rooppur nuclear power plant.


Local scientists also visited Russia several times and saw nuclear power plants to gather ideas about those.


Under the already agreed negotiation, Rosatom will supply necessary fuel for the reactors during its life-term and take back spent fuel.


Russia will also manage nuclear waste and help decommissioning of the nuclear power plant in future, under the deal.


Science and ICT Ministry of Bangladesh will act as the Competent Authority of the government, while BAEC will work as the customer of the proposed nuclear power plant project.


For Russia, Rosatom will act as the Competent Authority to implement the project.


Bangladesh and Russia have also agreed to set up a joint coordinating committee.


The International Atomic Energy Agency (IAEA) allowed Bangladesh to install nuclear power plants in 2007.


Country's unprecedented electricity supply crunch has prompted Bangladesh to undertake installation of its first nuclear power plant reviving around half-a-century old Rooppur nuclear power plant project.


The plan to construct the Rooppur nuclear power plant project was initiated by erstwhile Pakistan government in 1961.


Some 105.30 hectares of land were subsequently acquired for the project site and 12.15 hectares for the residential colony.


The then executive committee of the National Economic Council also had approved the project having three different capacities - 70 MW in 1963, 140 MW in 1966, and 200 MW in 1969.


But after the emergence of Bangladesh in 1971 there has been no headway in setting up of nuclear of power plant at Rooppur until the previous caretaker government moved afresh in 2007.


Source: thefinancialexpress-bd.com


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DCC: Caught in the puppeteers' strings

AppId is over the quota
AppId is over the quota
Shamsul Huq Zahid

The election of Dr. Selina Hyat Ivy as the first mayor of the newly created Narayanganj City Corporation (NCC) last Sunday almost coincided with the endorsement given by the cabinet to an amendment bill that seeks to split the Dhaka City Corporation (DCC), the largest of its kind in the country, into two. The bill now will be placed before the parliament for adoption.

The statement of object of the bill says the amendment to the relevant law was necessary to divide the DCC to facilitate proper services to its ever-increasing population.

An English Daily, quoting government officials, said it has become increasingly difficult for the DCC to provide civic amenities to more than 10 million people living within its jurisdiction.

The words 'proper services' and 'civic amenities' are, in fact vague in nature since they are not specific to the varying needs and expectations of the people who live within the areas of city corporations and pourashavas (municipalities) across the countries.

For instance, the residents of Narayanganj city voted overwhelmingly in favour of Dr. Ivy in the last Sunday's much-hyped NCC elections having varying expectations. Interviewed by the media following her election, a large number of people wanted Dr. Ivy to take effective action against extortionists. She herself in her post-election statement vowed to keep all the promises she had made during the electioneering.

Despite her total sincerity and good intention, she might find it difficult to fulfill all the promises she had made to the voters because of constraints, both legal and financial. The authority she would exercise under the relevant law and the financial resources to be available in the form of fees, taxes and grants from the government, might not be enough to meet the varying needs of Narayanganj residents.

The same has been true in the case of the DCC. There are inefficiencies and corruption, indifference etc., which have always contributed to the less-than-expected performance of the DCC. But lack of authority and financial constraints have played no small part in it. In fact, in the absence of lawful authority, the mayors, who are often described as 'city fathers', of DCC or other city corporations are unable to play any role when residents of their respective jurisdictions suffer due to the negligence of many service providers. Resources that the city corporations or pourashavas get as holding tax and annual grants given by the government are highly inadequate to meet infrastructural, recreational, educational and other needs.

The question is: how far the planned split of the DCC would help the Dhaka residents to get better civic services? Since the draft amendment bill does not incorporate any provision to sanction greater power and authority to the planned two city corporations -- one each for northern and southern parts of Dhaka city -- to ensure better coordination among the agencies responsible for providing civic amenities and services and mobilise greater volume of resources necessary to offer better services to the residents, the situation, in all likelihood, will remain the same after the split of the DCC.

Lack of coordination among various state agencies responsible for providing utility services to residents of the DCC does often create lots of problem. The situation is no better in many municipal corporations in neighbouring India. The founder of a non-governmental organisation (NGO) in Bangalore in India, Mr. Ramesh Ramanathan explained the state of affairs with city governance in his country in the following statement: 'Imagine a puppet whose strings are being pulled by different puppeteers: the hands by one, the legs by another and head and shoulders by a third. Sitting in the audience, the show would not look pretty. City governance in India is similar, being pulled and pushed in different directions -- sometimes even torn part -- by a chaotic urban administrative set-up".

Having problems identical to Bangladesh cities, India, which has 25 out of the world's 100 fastest growing urban areas, including Mumbai with a population of 12.5 million, is yet to choose the so-called 'split' as a remedy.

The local governments, pourashavas and city corporations included, as a matter of fact are seen as rivals rather than complements by the politicians and bureaucrats, managing the state affairs sitting at the centre.

That is why they have, deliberately or otherwise, put a blind eye to the Articles 59 and 60 of the country's Constitution and opted for their partial enforcement.

The Articles in question could be a strong basis for giving adequate power and authority to the local governments, including pourshavas and city corporations to manage and coordinate better the activities of all agencies involved in development activities in cities and towns.

The idea of city government, mooted by late DCC mayor Mohammad Hanif, a prominent and well-respected Awami League leader, did not receive a welcome response from the last Awami League government. His successor, the incumbent mayor, Sadek Hossain Khoka tried to push through the same idea. He also got lukewarm response from the last BNP government.

The idea of metropolitan government may not appear as a palatable option to the rulers but there must be a better option than splitting the DCC that might create more problems than resolving the current ones.

zahidmar10@gmail.com


Source: thefinancialexpress-bd.com


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