Govt meets with Beximco, others today over recovery of Tk103cr loan for wage arrears

As the government is seeking to recover the Tk103 crore loan it provided to several industrial groups, including Beximco Textiles, to cover wage arrears, the labour ministry has convened a meeting today to discuss possible repayment plans of the companies.  

Officials from relevant government ministries and agencies, along with chairmen and managing directors of Beximco Group, Yellow, Birds Group, TNZ Group, and Dard Group, are expected to attend the meeting, according to sources.  

Labour Secretary AHM Shafiquzzaman told The Business Standard, "We provided interest-free loans to settle outstanding wages of workers at several companies, including Beximco. These loans have a set term, and the money must be repaid within that period.  

"The groups have been invited to a meeting to discuss whether they have properly paid the workers with the interest-free loans and how they will repay the loans."

In response to another question, the labour secretary said Beximco received an interest-free loan of Tk60 crore from the government. The companies are now closed, and if necessary, the lender bank will sell them. 

However, the companies must repay the loans, either from other assets, income, or through alternative means, he pointed out.  

After the fall of the Hasina government on 5 August last year amid a mass uprising, garment factory workers began protesting for wage arrears. To address the situation, the ministries of finance and labour allocated interest-free loans to pay the workers' dues.  

The finance ministry provided an interest-free loan of Tk50 crore with a two-year term and a six-month grace period, while the labour ministry provided Tk10 crore, which must be repaid within six months, to cover wages for workers at Beximco Textiles.  

Beximco Textiles has been fully closed since 28 February, laying off all workers at its factories.  

The government is set to pay Tk525 crore to clear workers' wages at Beximco Textiles from 9 March, which will also be provided as a loan to Beximco. 

However, Beximco Group officials clarify that they did not request loan assistance to close the factory and pay dues, but rather to keep the factory operational.  

Last November, the government provided an interest-free loan of Tk14 crore from the finance ministry's revenue budget to pay the wages of Birds Group workers in Gazipur, and Tk13 crore to cover the wages of Dard Composite Textile Limited workers in Gazipur.  

The government has provided interest-free loans totalling Tk16 crore to pay wages to workers at five factories of the TNZ Apparels Group in Gazipur, with Tk10 crore from the Finance Ministry and Tk6 crore from the labour ministry's central fund.  

A senior Beximco Group official, speaking anonymously, told TBS that after the fall of the Hasina government last year, Beximco Textiles received a Tk60 crore loan from the government to pay the wages of 45,000 workers, with Janata Bank contributing about Tk200 crore.  

He said a large portion of Beximco Textiles' factories is mortgaged to Janata Bank, and while there are some mortgage-free lands, they cannot be sold to pay the government's dues as they generate no income due to the factory closures.  

"Selling mortgage-free properties to pay off the government's debt will take time, as the seller will need to provide documentation," he added.