Express (August 04, 2011)
The Ministry of Finance (MoF) on Wednesday asked different government ministries to undertake measures for forced retirement of top bosses including chairmen, directors and managing directors of state-owned enterprises (SoEs), who will fail to offload their shares as per new timeframe.
A letter, issued by Banking and Financial Institution Division, MoF to different ministries concerned said Prime Minister Sheikh Hasina approved the decision of offloading the share of SoEs, which many of their top bosses are not carrying out without any valid reason.
Other than top bosses of SoEs, any high official, if found involved in dilly-dallying tactics relating to divesting the shares, should also face retirement as a punishment, the letter of the ministry said.
The letter has been issued to the secretaries of ministries of power, energy and mineral resources, civil aviation and tourism, post & telecommunication, industries and shipping.
The MoF in February last extended the deadline for divestment of shares, up to 49 per cent of the equity capital, of 23 SoEs in the stock market between February 27 and December 31, this year.
The offloading was expected to begin with Meghna Petroleum and Jamuna Oil Company on February 27 last and end with Karnaphuli Paper Mills by December next.
However, the schedule for offloading was postponed and new timetable has been announced replacing the earlier one, a top official said.
The finance ministry directed offloading of shares of state-owned Titas Gas Transmission and Distribution Company Ltd and DESCO by August 14 next.
Other five state firms which have to offload their shares by August 31, according to the directives of Tuesday, are: Pragati Industries Ltd, Hotel International Ltd, Submarine Company Ltd, Essential Drugs Company Ltd and Bangladesh Shipping Corporation Ltd.
Besides, another 14 SoEs have also been directed to offload their shares at the earliest, without mentioning specific timeframe.
The SoEs are: Liquefied Petroleum Gas Ltd., Bangladesh Cable Industries Ltd., Telephone Shilpa Sangstha, Pragati Industries Ltd., Chittagong Dry Dock Ltd and Biman Bangladesh Airlines.
Furthermore, Bakhrabad Gas Transmission and Distribution Company Ltd., Teletalk Bangladesh Ltd., Gas Transmission Company Ltd, Jalalabad Gas T&D System Ltd, West Zone Gas Company Ltd, Sylhet Gas Fields Company Ltd, Rupantarit Natural Gas Company Ltd, Bangladesh Services Ltd and BTCL are to offload their shares likewise.
Officials in the MoF said the process of taking action against the top officials of unwilling SoEs has started. The stern disciplinary action would be taken soon against the errant company chairmen, directors or their top bosses, they added.
"No mercy will be shown this time. No arguments from the failing company officials will be taken into cognizance," a top Banking Division official told the FE on Tuesday.
"This is the highest level decision of the government," he added.
He, however, said the capital market needs shares of good companies as the number of the listed issues now is much lower than demand.
Meanwhile, adhering to the government's instruction, SoEs like Eastern Lubricants, National Tubes Ltd, Rupali Bank Ltd, Meghna Petroleum Company Ltd and Jamuna Oil Company Ltd have started offloading their shares in the capital market from July last.
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