The government has decided to sell mortgaged shares of Beximco Pharmaceuticals and Shinepukur Ceramics to settle overdue wages and benefits for workers at the Beximco Industrial Park. The Finance Division will oversee the sale, and the funds generated will be used to pay workers’ gratuity, service benefits, and other legally required payments, according to Sakhawat Hossain, convener of the Advisory Council Committee formed to review the labour and business situation at the park.
Sakhawat spoke to journalists after a committee meeting on Tuesday (28 January), stating that a follow-up meeting is scheduled for next Sunday. The meeting will include representatives from the Bangladesh Securities and Exchange Commission, the Finance Division, and relevant banks to arrange the sale of the mortgaged shares.
Beximco Textiles and Apparels, a key player in the Beximco Group, has accumulated a significant amount of debt, borrowing Tk28,544.14 crore from 12 banks and financial institutions. Sakhawat confirmed that a forensic investigation will be conducted to assess how these loans were disbursed, and actions will be taken against those responsible.
According to a report from the Dhaka Stock Exchange, Beximco Limited and its associated institutions hold shares in Shinepukur Ceramics and Beximco Pharmaceuticals, valued at approximately Tk4,392 crore. Beximco Group owns 50% of Shinepukur Ceramics and 30.13% of Beximco Pharma, although the extent of the mortgaged shares remains unclear.
At the current market price of Tk12 per share, Beximco Ltd’s 50% stake in Shinepukur Ceramics is valued at Tk88 crore, while the group’s 30.13% stake in Beximco Pharma is worth Tk1,029 crore. Sakhawat stated that between Tk550 and Tk600 crore is needed to pay the workers’ dues. Whether this money comes from the sale of shares or other sources, the government is committed to ensuring the workers are paid.
Sakhawat also revealed that Beximco has borrowed Tk12,000 crore against 16 non-existent institutions, contributing to a total debt exceeding Tk40,000 crore. The government will probe these loans to determine whether they are fraudulent. “This appears to be a larger scam than the theft of nearly $1 billion from the Bangladesh Bank reserves,” Sakhawat said, adding that the money was embezzled from taxpayers who entrusted it to the banks.
An investigation into the bank loans will be completed by February, with all banks and financial institutions subject to an audit of their loan disbursement documentation. Those found involved in wrongdoing will face legal and departmental actions.
Sakhawat also confirmed that some of Beximco’s laid-off companies will be shut down, and steps are being taken to replace the current receiver who failed to implement the closure decision. The Financial Institutions Division, with support from Bangladesh Bank, will appoint a new receiver.
Regarding Beximco’s operations, the advisory council committee reported that 16 out of 32 Beximco Limited companies in the industrial park could not be traced, and 12 companies had been laid off. In response to the situation, the government has arranged for the payment of three months’ salary arrears to workers at Beximco Industrial Park. The government has also provided Tk223 crore in interest-free loans to address the emergency, sourced from various funds.
This decision marks a significant step in resolving the financial issues at Beximco Industrial Park, ensuring that workers receive their due payments while investigations into the company’s financial practices continue.
