Bangladesh’s interim government has claimed that it will not bail out the garment factories related to a senior ally of deposed Prime Minister Sheikh Hasina, a step to dump thousands out of work.
Beximco, the South Asian nation’s biggest corporation, runs more than a dozen garment factories, providing employment to more than 40,000 people in Bangladesh’s significant export industry.
Its apprehended co-founder, Salman F. Rahman, was a close consultant to deposed PM Hasina, who deserted the country in August after the student-led uprising that threw out her government.
Work at Beximco’s factories has since halted, and workers have demonstrated demanding the interim government come to their protection.
“We have no other choice but to completely close the factories as the government cannot operate them,” Sakhawat Hossain, the interim government’s labour minister, said in a news conference on Thursday.
“The workers urged to nationalise the factories is also not possible,” he said, advising workers to seek other employment possibilities.
The government has accused Beximco’s massive unpaid loan balance as the reason behind its denial to take over the cooperation.
Bangladesh’s central bank has estimated the company’s outstanding loans and liabilities at more than $4.1 billion.
“The government considered continuing operations at the factories, seeing them as national assets with immense importance in employment and exports,” commerce minister Sheikh Bashir Uddin said.
“Despite the extensive amount of defaulted loans, we addressed the matter with compassion. However, we have not received enough cooperation from the holders.” Rahman was taken into custody soon after Hasina fled from the country.
Abdul Qaiyum, a senior officer of the Beximco Industrial Park, said the corporation’s bank accounts had been seized, stopping work at the factories. “We need some loans,” he said.
Beximco had demanded a bridging loan of $33 million to continue functioning, as per the Bangladeshi newspaper reports.
Workers at the company’s factories took to the streets on Wednesday to request the government help save their jobs and destroyed several vehicles in their demonstration.
Sakhawat said the government had compensated the salaries of Beximco workers up to the end of December and would ensure they receive other emoluments. “Those engaged in vandalism will face repercussions,” he said.
