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Textiles, Jute Ministry in 2009-13

Siddique's reign under scanner

Probe finds dozens of state-owned mills, factories, sold, handed over illegally to certain individuals

Hasan Jahid Tusher
When the then textiles and jute minister Abdul Latif Siddique ordered the sale or privatisation of 47 state-owned jute mills and factories violating rules during 2009-2013, the government turned a blind eye.
Only in February this year, the
Prime Minister's Office formed a committee to investigate the irregularities. The committee found Latif sold those industrial unitsTextiles, Jute Ministry in 2009-13
Siddique's reign under scanner
Probe finds dozens of state-owned mills, factories, sold, handed over illegally to certain individuals
Hasan Jahid Tusher
When the then textiles and jute minister Abdul Latif Siddique ordered the sale or privatisation of 47 state-owned jute mills and factories violating rules during 2009-2013, the government turned a blind eye.
Only in February this year, the
Prime Minister's Office formed a committee to investigate the irregularities. The committee found Latif sold those industrial unitsTextiles, Jute Ministry in 2009-13
Siddique's reign under scanner
Probe finds dozens of state-owned mills, factories, sold, handed over illegally to certain individuals
Hasan Jahid Tusher
When the then textiles and jute minister Abdul Latif Siddique ordered the sale or privatisation of 47 state-owned jute mills and factories violating rules during 2009-2013, the government turned a blind eye.
Only in February this year, the
Prime Minister's Office formed a committee to investigate the irregularities. The committee found Latif sold those industrial unitsTextiles, Jute Ministry in 2009-13
Siddique's reign under scanner
Probe finds dozens of state-owned mills, factories, sold, handed over illegally to certain individuals
Hasan Jahid Tusher
When the then textiles and jute minister Abdul Latif Siddique ordered the sale or privatisation of 47 state-owned jute mills and factories violating rules during 2009-2013, the government turned a blind eye.
Only in February this year, the
Prime Minister's Office formed a committee to investigate the irregularities. The committee found Latif sold those industrial unitsTextiles, Jute Ministry in 2009-13
Siddique's reign under scanner
Probe finds dozens of state-owned mills, factories, sold, handed over illegally to certain individuals
Hasan Jahid Tusher
When the then textiles and jute minister Abdul Latif Siddique ordered the sale or privatisation of 47 state-owned jute mills and factories violating rules during 2009-2013, the government turned a blind eye.
Only in February this year, the
Prime Minister's Office formed a committee to investigate the irregularities. The committee found Latif sold those industrial unitseither without inviting tenders or in non-transparent ways. And those were sold at throw away prices or were simply given away to certain individuals for free.
The five-member committee headed by PMO Director General Paban Chowdhury submitted the report to the prime minister on August 31.
The committee recommended action against those involved in the malpractice, FROM PAGE i
but the government is yet to do so.
Latif is now minister for posts and telecommunications and ICT.
"State properties are public properties. Legal actions can be taken against those responsible for hampering pub-licinterest," the probe report said.
It also recommended that the government reclaim those properties.
Prime Minister Sheikh Hasina has gone through the report and directed the ministry to take steps accordingly, said Textiles and Jute Secretary Phani Bhoushon Choudhury.
But reclaiming those mills and other properties will not be easy, officials said.
"We will see whether we can reclaim the properties already handed over, and stop the process of handover of other mills. We are working on it," Phani Bhoushon told The Daily Star at his office yesterday.
Mirza Azam, state minister for textiles and jute, said they sought legal advice from the law ministry on how to take those back avoiding legal complications. Upon scrutiny, the law ministry has found that some jute mills were sold, handed over and leased illegally.
Asked if any legal action would be taken against Latif, he said, "Those involved will face legal action."
The PM will visit the textiles and jute ministry on October 12 and give directives in this regard, sources said.
On Tuesday, Hasina decided to dismiss Latif from the cabinet following his remarks on hajj, Prophet Muhammad (SM) and Tabligh Jamaat in New York on Sunday. His comments triggered widespread criticisms at home and abroad.
According to the PMO report, Latif made unilateral decisions in selling or simply handing over those state properties to individuals, many of them rank and file of the ruling Awami League.
The report said the handover process for 30 mills and factories was already completed and that for 17 was underway.
Twelve of the 47 industrial units were given to people without follow-ing tender process and the Privatisation Commission law and policies.
One of those is Mohoni Mills Limited in Kushtia. In 1982, the government closed it down for incurring huge losses. Two years later, the factory was sold to Nazrul Islam forTk 11.26 crore. But he failed to pay the money and the work order was subsequently cancelled. In response, Nazrul challenged the cancellation in the High Court.
After taking office in 2009, Latif advised Nazrul to resolve the deadlock through discussion and withdraw the case, and pay Tk 49 crore to buy the unit.
As Nazrul failed to do any, the minister directed the authorities to sell the mill to a businessman named Abdul Matin without taking any step to bring
it back under government ownership.
Meanwhile, Matin too failed to pay and another contract was signed with one Arifur Rahman for selling the mill.
Later, the cabinet committee on economic affairs said the process of selling the mill was illegal and it was sold at a much lower price, according to the probe report.
When a deputy secretary drew Latifs attention to violation of policies in selling MK-1 Press House and its 2.89 acre land at Maheshwarpasha in Khulna, he wrote in the official note: "Throw away the policies in the Bay of Bengal and accept the previous selling price.”
The sale of Moslin Cotton Mill in Gazipur is also illegal. A property of Bangladesh Jute Mills Corporation, the unit was sold for Tk 135 crore. Besides, its price was not fixed properly, the report added.
The government set the price of Jute Belling Center at Tk 14 crore after its closure in 2009. When tender was floated for selling it, proprietor of Uttara Jute Traders Sujit Kumar Bhattacharya offered the highest price, Tk 5.05 crore.
As he was not given the work order, Sujit applied to the minister for buying the properties forTk 5.05 crore and he approved it, the report said, questioning if the prices were fixed through underhand dealings.
The land and properties of former Jute Board of Netrokona, Surojmall Agarwala of Bogra and Godnail Press House in Narayanganj were sold without inviting any bid.
Land and properties of another 13 units under the now defunct Bangladesh Jute Corporations were sold without re-evaluating the market prices.
Chisti Textile Mills at Daulatput in Comilla was sold at a lower price without floating tender. Dhakeswari Cotton Mill in the capital was given away for free while Valika Woolen Mill of Nasirabad in Chittagong was sold at a lower price, the report said.
Besides, relevant policies were not followed in selling and handing over Jamalpur's RSim Press House.
The land of Textile Facilities Center of Noakhali was sold at a much lower price than that mentioned in the tender. Cariline Silk Mills of Fauzderhat in Chittagong was handed over to workers and labourers and New Laxmi Cotton Mill at Godnail in Narayanganj was sold to a third party violating rules.
Moreover, a piece of land of Nishat Jute Mills was leased to Chittagong Samity for 99 years at Tk 1,01,101 per year for constructing a hospital. This was done although the housing ministry advised the textiles and jute ministry not to sell, lease or handover the land (18 decimals) atMotijheel.
The minister even granted a rebate ofTk 6.62 crore in interest of Eagle Star Textile of Chittagong. The company owed the money to the government.