Irregularities grip BoI
The state-run investment promotional agency has been grappling with irregularities for the last ten years.
Entrepreneurs see the Board of Investment (BoI) as an investors-unfriendly institution, though the organisation claims itself to be a friendly one.
According to investors, they are often forced to bribe the BoI officials to get their secretarial assistance in approving foreign loans, industrial registration certificates (IRC) for import of duty-free machinery or work permits for foreigners.
"Bribery is a very common practice at the BoI if any foreign entrepreneur wants to get foreign loan files processed. Everyone hastens to earn extra money at different desks of BoI," a member of the Foreign Investors' Chamber of Commerce and Industry (FICCI) complained preferring anonymity.
In case of repatriating profit money by any company to its native land, it has no other option than expensing a considerable amount of money for a BoI official who has been assigned to process the files of the company concerned, the Ficci member further alleged.
Another statement by a telecommunication company executive with regard to such ill-practice at the BoI has echoed the view of the Fici member.
This company official, also wanted to be anonymous, says if he does not comply with the BoI officials' desires of being gifted, he would not be able to get his application forwarded for repatriating profits to the shareholders.
So in the case of getting the IRC papers needed for importing duty-free machinery for any company being set up, he went on.
"All the secretarial procedures for issuance of IRC have to be completed at the BoI, which are very time-consuming and bothersome. A competent investor may feel shy experiencing such a malpractice," the executive alleged.
When asked, the newly appointed executive chairman of BoI, Mushtaq Uddin Ahmed, expressed his ignorance of any such malpractice.
He, however, said on receipt of any formal complaint, a committee would be formed with Abu Reza Khan, a BoI member, as its head to probe that.
"If the probe body finds any irregularity at the BoI, we will take initiative to root out the menace," Mushtaq said.
He denied any corrupt practice in allowing work permit for any foreign national.
In response to a query, Mamun Rashid, managing director & CEO of Citibank NA, Bangladesh, said most of the Bangladesh government departments are ridden with clumsy procedures that result in some irregularities.
Sources in the BoI said its scrutiny committee approved 152 foreign loan proposals amounting to US$ 3.39 billion in the last 30 years.
Out of the total foreign loans, telecommunications sector got the highest 49 loans amounting to $1.8 billion, power generation 14 loans worth $864 million, cement industries $206 million, textile sector $98 million and non-baking financial institutes $44 million.
Meanwhile, the BoI issued 1477 new work permits for foreign nationals in Bangladesh during August 2006-July 2007.
During the period, work permits of 1652 foreign national were also renewed.
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