Govt to arrange Tk 600cr to clear Beximco workers’ dues

The government will arrange Tk 600 crore to pay the arrears and service benefits to laid-off workers across 16 textile and garment units of the Beximco Group, according to a top official.

This decision comes as the previous plan to clear the worker payments by selling Beximco shares is "not possible within a short time," said AHM Shafiquzzaman, secretary to the Ministry of Labour and Employment.

According to the previous timeline, the government was supposed to make a final decision on paying the arrears and service benefits to the 27,000 laid-off workers of Beximco Group by today.

However, the deadline has now been extended to February 26, Shafiquzzaman said.

"The sale of the shares of Beximco Group is complex, and it might not be possible to complete within this short time," the labour secretary told The Daily Star.

He added that the laid-off workers should be paid within a timeframe as per the labour law. Therefore, the government will arrange the funds to pay the workers.

"Efforts to sell the group's shares will also continue," the secretary said.

The government may take loans from banks to pay the workers, he added.

Last week, Labour and Employment Adviser Brig Gen (Retd) M Sakhawat Hussain announced at a press conference that the government would clear the salary arrears and service benefits of over 27,000 laid-off Beximco workers this month, ahead of Ramadan in March.

The government has been trying to sell shares of the group's profitable units, but it may face difficulties in selling those owned by the Beximco owners, the adviser said at the time.

Different banks provided more than Tk 40,000 crore in loans to Beximco Group, yet the value of all its assets is not even close to that amount.

Of the loans, Tk 28,544 crore was taken by the group's 32 textile and apparel subsidiaries. Of those, 16 exist only on paper.

Beximco owes Janata Bank Tk 23,285 crore, Sonali Bank Tk 1,424 crore, Agrani Bank Tk 420 crore, Rupali Bank Tk 987 crore, National Bank Tk 315 crore, and United Commercial Bank Tk 333 crore.

It also owes AB Bank Tk 938 crore, Exim Bank Tk 497 crore, Global Islami Bank Tk 61 crore, Dutch Bangla Bank Tk 94 crore, IFIC Bank Tk 78 crore, and the Bangladesh Infrastructure Finance Fund around Tk 87 crore.