ECNEC extends ‘One House One Farm’ Project discounting legal complexities

The government has allocated Tk 80.1 billion to “One House One Farm” Project and extended it for another four years without ironing out legal complexities.

By law, the project was to be merged with Palli Sanchay Bank in June this year.

The allocation and extension of the project until June 2020 without amending the Palli Sanchay Bank Act is seen as anomalous as it further complicates the merger or abolishment of the scheme.

According to the Section 39 of the rural savings bank act, the ‘One House One Farm’ project was to be abolished on June 30, 2016. The project's assets, power, authority, fund, programmes and liability will be passed on to rural savings bank. 

However, the third amendment to the 'One House One Farm' project was passed in a meeting of the Executive Committee of the National Economic Council (ECNEC) on Tuesday, Planning Minister AHM Mustafa Kamal told reporters.

Asked about the 'legal complexities', the minister said after the meeting that “the extension of the project would not contradict the rural savings bank act.”

The project will continue under rural savings bank, the minister said.

"It will continue until poverty is eliminated in the country," he added.

The Awami League government initiated the project in 2009 with Tk 11.97 billion in order to turn every rural household into a hub of economic development. The project, originally designed to be completed by 2014, was extended until June 2016 by lifting the estimated cost to Tk 31.62 billion.

Following Prime Minister Sheikh Hasina's instruction, the Palli Sanchay Bank Act was passed in 2014 to give the project an institutional shape.

After licence was issued by Bangladesh Bank, Hasina inaugurated 100 branches of the rural savings bank on June 22 this year.

Asked how this legal complexity will be removed, Minister Mustafa Kamal said, "Palli Sanchay Bank will oversee the project. There is no need to abolish it."

"…the Ekti Barhi Ekti Khamar Project will be handed over to Palli Sanchay Bank while in operation."

Kamal also said the government would provide the cooperatives under the project with support until a certain period.

When a cooperative's term ends, it will merge into Palli Sanchay Bank, he added.

The Rural Development and Cooperatives Division had proposed more allotment for the project through its third amendment instead of abolishing it.

Palli Sanchay Bank Chairman Mihir Majumder had objected to the RDCD proposal, warning about possible losses in case of extension but failed to get any response.

Of the total paid-up share capital of Palli Sanchay Bank, the government was supposed to provide 51 percent while the rest was to come from the cooperative societies of the One House One Farm project.

"If the project is abolished, the members of the cooperatives will draw their savings out. Then where will Palli Sanchay Bank get the money?" Kamal argued in defence of the decision of extending the project.