Abdul Monem Group’s rejoinder and our reply
Abdul Monem Group has sent a rejoinder to a story headlined "NBR halts Abdul Monem Group's import, export" published in The Daily Star on April 24, 2024. We are publishing the unedited rejoinder in full followed by our response.
REJOINDER
We have noticed the headline news titled 'NBR halts Abdul Monem Group's import, export'. The report mentions that the National Board of Revenue has suspended all imports and exports by Abdul Monem Group and its sister concerns, including Abdul Monem Sugar Refinery, over misuse of bond facilities and non-payment of applicable duty and fines worth Tk 674.35 crore. Abdul Monem Sugar Refinery and its management purviews the news to be inappropriate.
Abdul Monem Sugar Refinery Limited is a licensed bond facility holder. Since obtaining the bond license, the company has been conducting business operations in compliance with the bond license terms and has been contributing directly to the country's ongoing economic progress by providing an estimated revenue of around 1,700 crore taka to the government. Additionally, the sugar produced, which is an essential commodity for Bangladesh, plays a significant role in meeting the needs of the country and its people. AM Sugar Refinery Limited directly and indirectly provides employment for approximately 2,500 people.
During the past fiscal years 2019-2020, 2020-2021, and 2021-2022 the company has faced substantial financial losses due to the global pandemic COVID-19, immediately followed by the Russia-Ukraine war, international business downturn, and the current foreign currency crisis, high interest rate, and contractionary monetary policies. Furthermore, due to the requirement of providing 100% margin to open LC, additional funds were needed to be brought in from our other businesses.
Abdul Monem Sugar Refinery Limited has been operating its business in compliance with all existing laws and regulations in the country for over two decades. It has been importing raw sugar and selling refined sugar in the domestic market in compliance with the country's laws, customs rules, and regulations, since obtaining the license.
The comment on misuse of the bond facility and illegal sale in the open market are not based on facts as well.
Abdul Monem Sugar Refinery Limited clears the sugar from Chattogram Customs after obtaining permission from the Bond Commissionerate and pays all required duties and taxes. The processed sugar is then sold in the domestic market in compliance with the prevailing rules of the country. Due to the stressed financial situation, some government duties remain unpaid, which eventually get paid on a rollover basis. By now, the majority of the amount has already been paid, and payment of the remaining amount is in process. As such, there is no scope for loss of any revenue for the government.
The comment on illegal sugar disposal mentioned in the report is also not based on facts. By presenting incorrect information and not verifying the same with any responsible Company Executive, this report, based itself on biased information, which could create confusion, tarnishing the image of this reputed business group.
We strongly protest the report.
OUR RESPONSE
The Daily Star published the report based on the NBR order dated April 23, 2024, a previous investigation by the customs authorities as well as quotes from top customs and NBR officials. Available documentary evidence as well as confirmation by the officials clearly suggest the Group misused the bond facility and has unpaid duties and related fines that were slapped upon evidence of violation of customs rules concerning bond facilities.
An official of Abdul Monem Group, whom we quoted in our story, also acknowledged this.
The rejoinder contains a lot of unrelated information, but does not contradict our story. We stand by our report.