Last update on: Thu Mar 6, 2025 12:09 AM
Mills and factories that were vandalised, ransacked or set ablaze during and after the July uprising have been struggling to reopen due to financial crises, unavailability of bank loans and their politically exposed owners facing legal consequences.
Nearly 1 lakh workers were employed in these production lines, many of which now remain closed, leaving employees to bear the brunt of the disruptions.
These attacks took place following the political changeover in August last year and during labour unrest from July to October last year.
As the industries have not been in operation for the past seven months, banks are not allowing these production units to open letters of credit (LCs) or seek loan rescheduling facilities, forcing them to endure a severe shortage of working capital.
Moreover, the owners of these industrial units are either in jail or have fled abroad due to their political ties to the previous Awami League government.
Major affected factories include 14 textile and garment factories of Beximco Group, five tyre factories of Gazi Group, three plastic factories of Bengal Group and several garment factories in Ashulia, Savar, Zirabo and Zirani.
The Daily Star spoke to members of the senior management of some affected factories, including Gazi Group.
Muhammad Fakhrul Islam, executive director (finance) of Gazi Group, said they have begun reconstructing the factories with plans to reopen within the next three to four months.
The group has been trying to reschedule a Tk 1,800 crore bank loan to resume operations. “Once we restart the business, repayment of the loan will be easy,” Islam said.
Losses from the burning and looting of five Gazi Group factories in Rupganj of Narayanganj in August last year amounted to over Tk 2,000 crore.
The factories of Gazi Tyre, Gazi Tank, Gazi Pipe, Gazi Door and several warehouses were destroyed, allegedly owing to the political influence of Golam Dastagir Gazi, former minister of textiles and jute, who is now in jail.
In the case of Beximco Group, the government is set to make the final wage and service benefit payments totalling Tk 525.46 crore to 31,669 workers and 1,565 officials from March 9.
Following the ouster of the Awami League government in early August last year, Beximco Group found itself in hot water.
Its Vice-Chairman Salman F Rahman, who is now behind bars, was an influential adviser to deposed prime minister Sheikh Hasina. He faces charges of murder, graft, and using political influence for personal business gain.
After the fall of the Awami League, financial irregularities linked to Rahman and his business empire came to light, with Beximco Group’s bad loans amounting to at least Tk 40,000 crore.
Top officials of the now cash-strapped group said they have repeatedly requested the government to allow them to open back-to-back LCs to resume business on a limited scale.
Khalid Shahrior, head of human resources (HR) and compliance for Beximco Group’s textile and garment division, said, “It is important to run the factories, regardless of who owns them, to save the employees and their families.
“Despite multiple requests, the government has not permitted the business to resume,” he said.
Meanwhile, Md Jashim Uddin, vice-chairman of Bengal Group, said three factories producing plastic goods, cement bags, packaging materials, and the group’s central warehouse were burned down in August last year.
More than 2,000 workers were employed in these Zirani-based units, generating Tk 80 crore in monthly revenue.
Jashim Uddin, also a former president of the Federation of Bangladesh Chambers of Commerce and Industry, said he needs to reschedule Tk 400 crore in bank loans as he plans to rebuild factories and buy new machinery.
Syed Rezaul Hossain Kazi, managing director of Big Boss, an export-oriented garment factory, said his factory incurred a Tk 60 crore loss in post-August damages.
The factory managed to resume production within days as the losses were covered by insurance.
Currently, 12,000 workers are employed at Big Boss, and Kazi said he did not face major issues with loan repayment as his factory restarted operations.
However, many affected garment factories were unable to do the same.
For example, at least four garment factories that were severely damaged have not resumed production, said Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
He declined to name these factories, saying they “were not allowed to reopen due to political reasons”.
AHM Shafiquzzaman, secretary to the Ministry of Labour and Employment, said the government has provided Tk 127 crore in primary financial support to five companies, including Birds, Dird, Yellow of Beximco and TNZ.
However, he said the government is now pressuring these companies to repay the loans as the six-month tenure is coming to an end.
“If they fail to repay the loans on time, the government will attempt to sell the properties these companies used as collateral when borrowing,” he said, adding that some units are operational and capable of repaying their debts.
Almost all affected garment factories have resumed operations, except for a few whose owners are either abroad or burdened with high outstanding loans, said Md Anwar Hossain, administrator at BGMEA.
Besides, some factories have remained shut since July last year, due mainly to financial losses from production halts caused by labour unrest and vandalism, he said.
Brigadier General (Rtd) M Sakhawat Hussain, adviser to the Ministry of Labour and Employment, said his ministry has worked on labour issues with many factories and provided financial aid to some to pay wages.
However, providing financial support to all affected factories is not possible due to their outstanding bank loans, he said. “Still, if any factory approaches the ministry, we will try to assist.”
Regarding the government’s financial support for workers’ wages and benefits, he said it was done on humanitarian grounds, as selling shares of these companies is complex and time-consuming.
He also said that Beximco Group’s default loans are too high for the government to risk major financial intervention to restart its operations.