More than 90 per cent of the bad debt shown against Bangladesh Textile Mills Corporation (BTMC) In the recently published defaulters list are the liabilities of the textile mills disinvested in the early 80s. according to BTMC sources.

Of the Taka 244. 91 crore bad debt. 93 per cent of that amount are the liabilities of the ■20 textile mills privatised in 1982.

It was stipulated at that time that assets along with the existing liabilities of the mills were to be transferred, to the new owners. Although the 20 units were transferred in 1982. agreement on transferring the liabilities was never reached, an official of the Corporation said.

There was to be a tripartite agreement involving the respective banks. the Corporation and the owners of the disinvested units in presence of a representative of Ministry of Industries.

Such an accord was to be reached on a tentative basis'on

the amount of liabilities shown on the transfer deeds, subject to adjustments In the light of a Joint audit report, the sources said.

Sources at the Bangladesh Textile Mills Association (BTMA). of which the 20 disinvested units are members, pointed out that the BTMC had refused to abide by a Joint audit report prepared by representatives of both the Corporation and the respective mills which was completed in the mid-80s.

BTMA sources said that the principal amount of the loan taken by BTMC between 1972 82 on behalf of these units was about Taka 33 crore. The total amount Including interests stood at Taka 223 crore as of June '90. the sources added.

Meanwhile, a high powered body was constituted by the government in 1988 to look into the issue relating to transfer of liabilities. The committee was headed by the then Minister of Industries.

According to the BTMA sources, this committee recommended the exemption of

100 per cent of the Interest on the loan for the ten year period of 1972-82 and another 50 per cent exemption of Interest accrued during 1982-90.

These recommendations were subsequently approved at the highest level in August '90. the sources said. The total amount of outstanding loans minus the exemptions owed by the 20 textile mills stood at Taka 65.88 crore, the sources added.

However, the banks were unwilling to comply with the recommenda -tions and sought compensations from the government, the BTMA sources noted.

So. the whole issue of transfer of liabilities of the 20 privatised textile units remains unsolved, they added.

BTMA sources also pointed out that out of the 20 units, six units were separately listed as defaulters while their cumulative liabilities have been reportedly included in the ag gregate amount of bad debt shown against BTMC.