The nation’s business sector is grappling with mounting challenges, characterized by widespread anxiety, fear, and uncertainty.
Foreign stakeholders remain wary of the country’s safety, spurred by travel advisories tied to a deteriorating law-and-order situation. Investments have sharply declined, while factories face disarray and production delays due to disruptions in the import of raw materials. Meanwhile, persistent energy crises and shrinking employment opportunities are exacerbating the economic strain.
The most alarming concern is the rising harassment of entrepreneurs and business leaders, fueling fears that the economy may be on the brink of a crisis reminiscent of the One-Eleven political turmoil.
Business leaders recall the brutal oppression during the military-backed caretaker government in 2007, which left a lasting scar on the economy. Top entrepreneurs were arbitrarily detained, wealth was forcibly confiscated, and the business environment was severely disrupted, exacerbating unemployment. Now, signs of a similar scenario are emerging.
Economists and business experts have drawn parallels with the One-Eleven period, citing skyrocketing prices of essentials and instability in the industrial sector. They fear a recurrence of the same damaging patterns, which could further jeopardise the country’s economy. Following the 5 August fall of the ruling Awami League, concerns have heightened due to harassment and murder cases filed against numerous businessmen.
Experts advise the interim government to remain vigilant in protecting the industrial sector during this critical time. They caution against any vested groups attempting to manipulate the government into actions that could harm businesses and destabilise the economy.
Insiders report that many business groups responsible for essential imports and market supply chains are being targeted, with some already facing frozen bank accounts and intimidation. This has created a pervasive climate of fear, leading entrepreneurs to refrain from new investments and scaling back production capabilities.
Business leaders recall that during the One-Eleven period, 216 prominent entrepreneurs and politicians were detained, and about 200 businessmen were forced to leave the country. Forced fines extracted Tk1,232 crore from business leaders, yet this money has not been returned even after 17 years.
Experts argue that instead of harassing businesses, the government should focus on recovering the Tk17 lakh crore laundered abroad and punishing those responsible. Entrepreneurs are now wary of baseless lawsuits and intimidation, with many already compelled to leave the country. Production in factories has declined by 25–40 %, compounded by dollar shortages and LC complexities.
Business leaders warn that if such issues are not addressed, the economy risks sliding into deeper turmoil, with severe consequences for industries and livelihoods.
The turmoil of One-Eleven
During the regime of the One-Eleven interim government, top business and industrial groups, including Bashundhara Group, faced severe repression. Reflecting on that harrowing period, a senior official of the group said, "Fourteen senior officials of our company were detained by an intelligence agency under the One-Eleven government. They were held in interrogation cells for one to three months and subjected to severe mental and physical torture. Many were falsely implicated in cases and served over 12 years in prison."
He said, "About 35 false cases were filed against our group chairman, his family, and 14 officials. Similarly, after 5 August, nearly 15 more false cases were filed. Forced by the regime, our directors were made to sell land belonging to the group, and Tk256 crore was taken by an intelligence agency. Shares of our print and electronic media were forcibly transferred to others. Although the High Court ordered the money’s return, affirmed by the Appellate Division, we have yet to receive a penny."
Another business leader, speaking anonymously, said, "With entrepreneurs behind bars, businesses began collapsing. Defaults increased, salaries went unpaid for months, and workers were laid off. Some resigned voluntarily, while unemployment skyrocketed, exceeding 50%."
According to a study by the Centre for Policy Dialogue (CPD), the cost of essential goods such as rice, flour, and oil surged during the interim government’s rule, pushing 20 million more people below the poverty line.
The state of business today: Voices of entrepreneurs
Entrepreneurs hoped that the new government would revive the stagnant business environment seen towards the end of the previous Awami League regime. Instead, attacks on factories and the filing of murder cases against business leaders have left them disheartened.
Former FBCCI president and Multimode Group chairman Abdul Awal Mintoo said, "Those creating jobs through investments were the ones targeted. Investment is essential to combat unemployment, yet the environment for investment is dire. Investors now face multifaceted challenges. The government should have prioritised returning confiscated funds to the affected businesses."
Legal experts argue that false murder charges against major entrepreneurs undermine the rule of law and the country’s business-friendly reputation.
Since Sheikh Hasina's government's fall, numerous cases have been filed nationwide. In one instance, an entrepreneur with no political ties was accused of a student’s murder, despite being over 60 years old. Dhaka Metropolitan Police (DMP) records show that 248 murder cases were filed between 5 August and 16 September, with many complaints following identical patterns.
Fabricated cases and their impact
Sirajul Islam Azad, HR head of Bitopi Group, said, "False cases have been lodged against BGMEA leaders, even implicating our managing director, who wasn’t in the country at the time of the alleged incident."
BKMEA president Mohammad Hatem warned, "Such cases are forcing some owners to leave the country, disrupting daily operations in their factories."
Sumon Kanti Sinha, General Manager of HR and Compliance at Fakir Group, said, "After 5 August, false cases were filed against our board, despite their lack of political affiliation during the previous government’s term."
Former FBCCI president Mir Nasir Hossain commented, "A sinister faction is determined to destabilise the economy and society to discredit the interim government. This malevolent group must be confronted and defeated with full force."
Rizwan Rahman, a former DCCI president, said, "An anti-state clique is trying to destabilise the country to seize power. They are behind attacks on industries and factories. These elements must be brought to justice through legal action."
Demand for refund of Tk1,232 crore
According to the case details, from April 2007 to November 2008, an intelligence agency and TFI officials collected Tk1,232 crore from nearly 40 individuals and organisations. The funds were deposited in the government’s 0900 account at Bangladesh Bank through over 200 pay orders. Business circles are now demanding the return of the money, alleging that it was forcibly taken.
When asked about the current status of the funds, a senior official of Bangladesh Bank, speaking on condition of anonymity, said the government is aware of the funds' status. Since the money was deposited into a current account, no interest has been accrued. Several high-ranking central bank officials suggested that the government could consider returning the funds.
Supreme Court verdict on the return of Tk615 crore
On 15 May 2017, the full verdict of the Appellate Division, upholding a High Court ruling to return Tk615.55 crore within three months, was published on the Supreme Court’s official website. The money was taken from various institutions and individuals during the caretaker government supported by the military.
In its detailed verdict, a four-member Appellate Division bench led by then-Chief Justice Surendra Kumar Sinha said that it was the government’s responsibility to explain the authority and process under which the money was collected or forcibly taken. The government remained silent, while Bangladesh Bank and its chief executive supported the unethical and inhumane actions.
When asked about the progress in refunding the money, Advocate Ahsanul Karim, the lawyer representing the businesses, said: "After the 2017 Appellate Division verdict, Bangladesh Bank filed a review petition. That petition remains unresolved, and as a result, the businesses have yet to receive their funds."
Separating business from politics
Masrur Reaz, Chairman of Policy Exchange Bangladesh (PEB), said, "Many businesses face harassment following political changes in the country. Business and politics must be treated as separate domains.”
“If someone commits a crime, it should be addressed through investigation and action, but the overall business environment must not suffer. Clear distinctions must exist between business operations and political activities to prevent unnecessary suffering caused by political affiliations," he added.
Source: Kaler Kantho
BDST: 1236 HRS, DEC 04, 2024
