FOREIGN COMPANIES IN BANGLADESH UNDER RADAR


FOREIGN COMPANIES IN BANGLADESH UNDER RADAR

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The National Security Intelligence (NSI) of Bangladesh found a major role of foreign companies and it’s Liaison offices in Bangladesh in expansion of production of sub-standard readymade garments (RMG) by sub-contracting orders to non compliant factories where international and national social and labour standards are not maintained, reports the Financial Express yesterday.

In an investigation report, which has been sent to the ministries of commerce, industry, home affairs, the National Board of Revenue (NBR) and the Board of Investment (BoI), the agency identified the intention of maximisation of profit by Liaison offices as one of the major causes of collapse of the Rana Plaza, the world’s deadliest industrial disaster in which at least 1,133 innocent people have been killed.

The report recommended strict monitoring by BoI, the supervising agency for foreign companies in Bangladesh, for example setting up a monitoring cell with participation of the intelligence agencies. Following the recommendation of the investigation report, the BoI has formed a three-member probe body to monitor activities of foreign companies and it’s Liaison offices.

The agency suggested the BoI and the NBR to intensify scrutinising process of issuance of work permits, employment visas and collection of taxes from foreign company’s and it’s Liaison offices in Bangladesh. “Growth of the country’s readymade garments industries is under a threat due to desperate activities of foreign Liaison offices,” it added. Liaison offices were associated with the Rana Plaza and the Tazreen Fashions.

“These Liaison offices are taking maximum amount of commissions from sub-standard factories and repatriate funds to the home countries for the parent companies. Local factories receive less than half of the actual prices for their products that are paid by the importers,” the report said. It further said that these offices often declared low salaries to it’s expatriate employees to evade taxes”. The report’s recommendations to the National Board of Revenue (NBR) include stronger monitoring tax collection from foreign nationals, companies and it’s Liaison offices.

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AUGUST 29, 2013

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About Ehsan Abdullah

An aware citizen..
This entry was posted in CHALLENGES, CURRENT ISSUES, DEFENCE & SECURITY, FOREIGN RELATIONS & POLICY, STRATEGY & POLICY and tagged , , . Bookmark the permalink.

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