Finance Minister
I’ve no mechanism to gather money-laundering info: Finance Minister
Finance Minister AHM Mustafa Kamal has said he does not have any mechanism to glean information about money laundering.
“I don’t have any mechanism of my own. I’ve received some information from newspapers. I believe the Bangladesh Bank has been working on it,” he told reporters while briefing them on the outcomes of the Cabinet Committee on Public Purchase and Cabinet Committee on Economic Affairs on Wednesday.
The Finance Minister, however, said there are some other government bodies responsible to collect information and bring the perpetrators to justice. “We’re taking legal action against them and they’re being punished as per law.”
READ: ‘No idea who’re siphoning off money; give me a list’: Finance Minister
Mustafa Kamal said he has a plan to brief journalists soon about how many people have been brought under the law and tried and what kind of improvement made in this regard.
“I’ll inform you about the steps I’ve taken and how many people have been tried,” he said.
Responding to another question, the finance minister said he supports the state minister for power and energy statement that petroleum prices need to be adjusted downward if and when the international market gets stable.
“Now the market is flexible, the prices of fuels are fluctuating frequently’, he said.
No idea who’re siphoning off money
On November 27, Finance Minister AHM Mustafa Kamal said he has no idea who are actually siphoning off money from the country and asked the opposition MPs to provide him with a list of money launderers.
READ: People’s interest in paying tax is growing in Bangladesh: Finance Minister
“I don’t siphon off money. I believe you (MPs) also don't. How will I be able to know of those who're siphoning off money if you don’t provide me with a list!” he said.
During the passage of Bankers’ Book Evidence Bill 2021, the minister came under fire by the opposition MPs for his “failure” to stop money laundering.
‘No idea who’re siphoning off money; give me a list’: Finance Minister
Finance Minister AHM Mustafa Kamal on Saturday said he has no idea who are actually siphoning off money from the country and asked the opposition MPs to provide him with a list of money launderers.
“I don’t siphon off money. I believe you (MPs) also don't. How will I be able to know of those who're siphoning off money if you don’t provide me with a list!” he said.
During the passage of Bankers’ Book Evidence Bill 2021, the minister came under fire by the opposition MPs for his “failure” to stop money laundering.
The finance minister claimed that the amount of default loans is now the lowest in the country since independence.
“In 2006, the total amount of the default loan was 13.15 percent. The amount of default loan is Tk 101, 150 crore as of September. This is 8.12 percent, and it’s the lowest,” he insisted.
Read: HC seeks list of money launderers
While participating in the discussion on the Bill, several opposition MPs alleged that thousands of crores of Taka were siphoned off abroad from the country.
The opposition MPs demanded a reply from the finance minister and demanded formation of a banking commission to look into these matters.
UNGA confirmation of Bangladesh’s graduation from LDC is a landmark success: Kamal
The United Nations General Assembly has adopted a historic resolution to graduate Bangladesh from the LDC category to a developing country, a move hailed by Finance Minister AHM Mustafa Kamal as a “landmark success.”
The UNGA confirmation has come during the 40th plenary meeting of its 76th session where the Economic and Social Council or ECOSOC placed the recommendation for Bangladesh’s graduation.
Read: People’s interest in paying tax is growing in Bangladesh: Finance Minister
“This is recognition of the incredible socioeconomic progress that has been attained under the prudent leadership of Prime Minister Sheikh Hasina over the years”, he said in his reaction on Thursday.
Kamal also mentioned that this success has been achieved thanks to the nation’s efforts at fulfilling the dream of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman.
“This is an international recognition of the indomitable progress made by Bangladesh under the direction of the prime minister. People from all walks of life of this country have contributed to this historic success”, Kamal added.
Earlier, the Committee for Development Policy (CDP) of the United Nations recommended Bangladesh for LDC Graduation during its triennial review meeting held on 26th February this year.
CDP also recommended providing an extended preparatory period of five years for Bangladesh spanning from the year 2021 to 2026. The recommendation had been duly endorsed by the ECOSOC of the United Nations on 08 June 2021.
Read: Remittance inflow to become normal in 2-3 months: Finance Minister
It is notable that Bangladesh is the only country that has been recommended for LDC graduation by fulfilling all three criteria set by the United Nations. This achievement will further brighten the overseas image of the country and will accelerate the ongoing development pace.
Bangladesh has been recommended for graduation at a time when the whole country is celebrating 50 years of its independence as well as the birth centennial of Bangabandhu Sheikh Mujibur Rahman.
As per the rules of CDP, a country can enjoy three to five years long preparatory period after being recommended for graduation.
Since, Bangladesh has received a five-year preparatory period for graduation as per the recommendations of CDP, the country will formally graduate from the LDC status in 2026.
During this preparatory period, Bangladesh would be entitled to enjoy all the international support measures reserved for LDCs.
In addition, as per the existing provisions, the country would also remain eligible to enjoy duty-free and quota-free access in the European Union market for three more years lasting until the year 2029.
With a view to continue the international support measures received as an LDC in the aftermath of graduation as well as to ensure a smooth and sustainable graduation-- the government is taking various policy measures under the leadership of the Prime Minister’s Office, in partnership with private sector and development partners.
Consumers have to bear some of the burden of increased fuel price: Finance Minister
Finance Minister AHM Mustafa Kamal has said the mass people have to bear the burden of increased fuel price to some extent as the government needs money to finance development projects.
“The consumers have to share some of the burden, while the rest is borne by the government. The government has to earn money from the taxes… This is an easy equation,” he said while briefing reporters after presiding over a meeting of the Cabinet Committee on Public Purchase on Wednesday.
Read:CPD for reinstating previous fuel prices
“If the price is not hiked, how could the government earn? The government has to spend money for development projects,” he said.
He, however, said he will brief on the fuel price hike after the next week’s meeting of the cabinet body.
The government hiked the price of diesel and kerosene by 23 per cent and subsequently bus fare was raised by 28 per cent.
Youths to make Bangladesh prosperous, says Finance Minister
Bangladesh will become a developed country by 2041 by harnessing the innovative power of the youth, said Finance Minister AHM Mustafa Kamal on Saturday.
“The government has allocated Tk 100 crore in the current budget to support young innovators. We’ll move forward in the right direction by transforming the challenges into opportunities,” the minister told young inventors.
He also urged them to uphold the economic prosperity of Bangladesh in the global arena by establishing new companies like Google and Facebook.
The minister came up with remarks while addressing an award-giving ceremony among the grant final winners of the ‘Bangabandhu Innovation Grant (BIG) 2021’.
The finance minister said the journey of the startup ecosystem in Bangladesh started in 2010.
Read: Savings certificates: Finance Minister defends profit lowering
Currently, over 2,500 startups are there in Bangladesh and they are playing an important role in our economy where around 1.5 million people have been directly or indirectly employed through startups, Kamal said.
On the occasion of the Golden Jubilee of Bangladesh's Independence and Mujib Year, the grand finale of this special event was held on Saturday at the Multipurpose Auditorium of Bangladesh Film Archive at Agargaon.
The state minister for ICT Division Mr. Zunaid Ahmed Palak presided over the programme. Senior Secretary of ICT Division N M Zeaul Alam and Executive Director and Additional Secretary of Bangladesh Computer Council (BCC) Dr Md Abdul Mannan were the special guests at the function. Project Director of Innovation Design and Entrepreneurship Academy (iDEA) Md. Abdur Rakib also spoke on the occasion.
The "Bangabandhu Innovation Grant (BIG) 2021" was organized by the iDEA Project of Bangladesh Computer Council (BCC) under the ICT Division to inspire young entrepreneurs and startups.
One of the aims of this initiative is to create a startup ecosystem in the country by encouraging young entrepreneurs having innovative ideas.
Read: No money from stimulus package enters stock market: Finance Minister
At the end of the campaign in 142 countries, more than 7,000 startups and inventors from 57 countries, including Bangladesh, participated in the contest at the initial stage.
The best of the best winning startup "OpenRefactory” received a grant of 1,00,000 US dollars with special honors as "One Big Winner 2021", which is the biggest reward from the ICT Division for the startups in this Mujib Year.
In the BIG 2021 Grand Finale programme, 36 startups chosen from home and abroad will receive a total grant of BDT 3 crore 60 lakh where each startup will get Tk 10 Lakh.
A total of 46 startups, including 26 local startups selected from the reality show, the top 10 startups at the international level and the top 10 startups of the iDEA Project portfolio, were in the "BIG 2021 Grand Finale".
8 projects get go-ahead of Cabinet Purchase Committee
The Cabinet Committee on public purchase (CCPP) approved a total of 8 proposals including setting up 660 MW gas-fired plant in Meghnaghat in Gazaria of Munshiganj by private sector, import fertilizer and purchase of Corona Virus RT-qPCR Diagnostic kits.
Finance Minister AHM Musafa Kamal presided over the virtually held cabinet body meeting on Sunday.
As per proposals, Consortium of (1) Edra Power Holdings Sdn Bhd, Malaysia and (2) Winnievision Power Ltd, Bangladesh, will set up the 660 MW combined cycle plant on unsolicited basis under the Speedy Supply of Power and Energy Act (special provision) 2010.
The state-owned Bangladesh Power Development Board (BPDB) will purchase electricity from the plant over a period of 22 years at a levelised power tariff of 3.679 US Cents (equivalent to Tk 2.94) per kilowatt hour if it is run by local gas.
But if the plant is run by imported re-gasified liquefied natural gas (R-LNG), the tariff will be 6.7972 US Cents (equivalent to Tk 5.4377) kilowatt hour (per unit).
The government will have to Pay Tk 69,165 crore to the consortium to purchase the electricity from the plant over the contracted period of 22 years.
Another proposal of the Power Division that received the nod of the committee to extend a deal with India for another 5 years to import 160 MW electricity from its Tripura state.
Read: Cabinet body okays imports of rice & fertilisers
The committee approved a proposal of the Central Medical Stores Depot (CMSD) under the public health division to procure 2 million CoronaVirus RT-qPCR Diagnostic kits (with VTM and swab) from three suppliers Sterling Multi Technologies Ltd, Dhaka; OMC (Pvt) Ltd. Dhaka; and G.S Biotech, Narayanganj, at a cost of Tk 117.41 crore.
Three separate proposals of Bangladesh Chemical Industries Corporation under the Industries Ministry received the nod of the committee to import a total of 90,000 metric tons of urea fertilizers.
Of these, the BCIC will purchase 30,000 MT of fertilizer from each of the three suppliers—Kafco of Bangladesh, Muntajat of Qatar and Sabic of Saudi Arabia.
Meanwhile, the Cabinet committee on economic affairs (CCEA) gave in principle approval to four separate proposals.
As per a proposal of the Public Transport Division under the Ministry of Establishment, 50 Mitsubishi Pajero sports jeeps will be purchased for the Upazila Nirbahi Officers (UNO) from the state-owned Progoti Industries through direct procurement method.
The CCEA gave approval to a proposal of the Roads and Highway Department to cancel its decision to implement its project titled: Implementation of Dhaka –Chattagram Expressway Construction under PPP.
Read: Fertiliser demand rescheduled for fiscal year 2020-21
The committee approved another proposal of the Roads and Highway Department to implement its project—Hatirjheel-Rampura Bridge-Banasri-Shekhertek-Amulia Highway Improvement into four lane—through public private partnership (PPP).
As per the decision, now the project will be awarded to the Consortium of (1) China Communications Construction Company Ltd (CCCCL) and (2) China Road and Bridge Corporation (CRBC) to work as PPP partner.
A proposal of the Health Directorate under Public Health Service Division received the nod of the CCEA to import 27.64 crore syringes from China National Pharmaceuticals Foreign Trade Corporation under the direct procurement method for vaccinating 13.82 crore people.
The syringes will be purchased to achieve a target to vaccinate 2 crore people every month against the coronavirus.
Remittance inflow to become normal in 2-3 months: Finance Minister
Finance Minister AHM Mustafa Kamal has said he is expecting the country’s remittance inflow to become normal within two to three months.
“Hope, we’ll see an uptrend within two-three months as many of the expatriates who got stuck at home are going back to work following the improvement in the Covid-19 situation,” he told reporters on Wednesday after a meeting of the cabinet committee on public purchase.
Read: Remittances hit record high in April ahead of Eid
The finance minister’s remarks came against the backdrop of the consecutive fall in inward remittances of the country.
As per the Bangladesh Bank’s statistics, the country received $1871.49 million in July, $1810.10 million in August and $1726.29 in million in September this year.
After the fall in remittance earnings, many analysts apprehend if the downward trend continues, the country’s foreign exchange reserve may witness a decline.
Read: Remittance, investment promotion campaign held in US
Mustafa Kamal said Bangladesh has been witnessing continuous rise in remittance inflow as a result of the various measures, including 2 percent incentives given by the government to wage earners.
He said the slight fall in remittance inflow is temporary and it will return to normalcy within two months as Bangladesh has long been receiving remittances of $22-23 billion annually.
No application received from Padma Bank for merger: Finance Minister
Finance Minister AHM Mustafa Kamal has said he received no application from the Padma Bank Limited for its merger plan with any state-owned bank.
“I received no application from Padma Bank so far,” he said while talking to reporters after a meeting of the cabinet committee on public purchase (CCPP) on Wednesday.
Mustafa Kamal, however, said now all the state-owned banks like Janata, Sonali and Rupali have certain stakes in the Padma Bank’s ownership structure.
He also said a draft has been prepared for framing a law on the merger and acquisition. “Hopefully, the law will be enacted soon to facilitate the process of merger and acquisition. Once the law is enacted, we can consider the proposal of the Padma Bank.”
Read: Savings certificates: Finance Minister defends profit lowering
Kamal said the owners of the Padma Bank failed to run the bank due to corruption by a section of people. “Punitive measures were taken against those people. Now they are in jail after trial,” he said adding, “What else can the government do?
Responding to another question, the finance minister said Business Research International Corporation Inc. (BRIC), a Panama-based company, which was given the approval to set up a 50MW solar power plant in Terkhada in Khulna, is not a tainted company like those the names of which were published in Panama Papers.
He said the company in Joint Venture with Hero Future Energies Asia Pte. Ltd, Singapore will set up the plant on its own and the government does not need to invest any amount in the project.
Read: No money from stimulus package enters stock market: Finance Minister
State-owned Bangladesh Power Development Board (BPDB) will purchase electricity over 20 years at a total cost of Tk 1328.90 crore.
The finance minister said this company may be based in Panama, but it is not among those companies which were published by Panama Papers for their corruption.
“Panama Papers companies and a Panama-based company are not the same,” he said.
Cabinet purchase body clears procurement of huge wheat, fertiliser
The cabinet committee on public purchase (CCPP) at a meeting on Wednesday approved 11 procurement proposals, including the import of 50,000 metric tons of wheat and 90,000 mt of fertiliser.
Finance Minister AHM Mustafa Kamal presided over the virtual meeting.
As per the approvals, Agrocorp International Pte Ltd., Singapore will supply the 50,000 mt of wheat at a cost of 29.1069 million (equivalent to Tk 179.50 crore) under an international quotation invited by the Directorate General of Food.
Each metric ton of wheat will cost $421.38.
Bangladesh Chemical Industries Corporation (BCIC) will import 90,000 mt of urea fertiliser from three companies under three separate lots under state-to-state contracts.
Of these, the Fertiglobe Distribution Limited, UAE will supply 30,000 mt of bulk granular urea at $10.3524 million (equivalent to Tk 115.16 crore) -- each ton at $ 450.833.
Muntajat of Qatar will supply 30,000 MT of bagged granular urea at $10.314 million (equivalent to Tk 111.71 crore) -- each MT $436.83.
Read: Cabinet body okays imports of rice & fertilisers
Saudi Basic Industries Corporation (SABIC) will supply 30,000 mt bulk granular urea at $10.2775 million (equivalent to Tk 108.90 crore) – each mt at $425.83.
Two proposals of Bangladesh Rural Electrification Board (BREB) also received the CCPP nod.
Of these, the BREB will award a Tk 84.42 crore contract to MANS Electrical Ltd, for the supply of 13,040 distribution transformers for the electricity distribution network expansion project at Dhaka, Mymensingh, Chattogram and Sylhet divisions.
It will ward a Tk 71.23 crore contract to Bangladesh Machine Tools Factory Ltd, for the supply of 51,359 SPC poles for the same extricate distribution project.
Read: Fertiliser demand rescheduled for fiscal year 2020-21
The committee approved a tender proposal to award a Tk 123.91 crore contract MONICO Ltd, Dhaka for the construction of a land port at Ramghar in Khagrachari district under “Bangladesh Regional Connectivity Project-1: Development of Sheola, Bhomrah, Ramgarh Land Ports and upgradation of Security System of Benapole Land Port ''.
The committee also approved a proposal for appointing a consultant for Cox’s Bazar airport runway construction project and awarding two separate contracts for administration building construction of Sheikh Hasina University, Netrakona and its land development project.
NDB takes Bangladesh, UAE, Uruguay as new members in global outreach
The New Development Bank (NDB) – established by Brazil, Russia, India, China and South Africa (BRICS) in 2015 – has welcomed Bangladesh, UAE, and Uruguay as new members as parts of its membership expansion move.
“Membership of Bangladesh to NDB has paved the way for a new partnership at a momentous time of the 50th anniversary of our independence,” said Finance Minister AHM Mustafa Kamal on Thursday.
He said the membership in the NDB is an important step forward in meeting the development vision of Prime Minister Sheikh Hasina.
“We look forward to working closely with NDB to build together a prosperous and equitable world for our next generation as dreamt by our Father of the Nation Bangabandhu Sheikh Mujibur Rahman,” said the finance minister.
NDB’s Board of Governors authorized the Bank to conduct formal negotiations with prospective members in late 2020.
After a round of successful negotiations, NDB approved the admission of the United Arab Emirates (UAE), Uruguay and Bangladesh as its first new member countries.
“We are delighted to welcome the UAE, Uruguay and Bangladesh to the NDB family. New members will have in NDB a platform to foster their cooperation in infrastructure and sustainable development,” said Marcos Troyjo, President of NDB. “We will continue to expand the Bank’s membership in a gradual and balanced manner.”
Read: Rohingya issue not to disappear from agenda despite new global challenges: EU