Dhaka, Jan 9 (bdnews24.com) – Karnuphuli Fertiliser Company Limited (KAFCO), an international joint venture company, contributed $744 million to the national exchequre during the last six years.
"KAFCO has a negative image among the policymakers, government officials and general people, but the reality is we've paid $191.6 million or over Tk 13 billion as dividend to the government," KAFCO chief executive officer Salahuddin Ahmad said on Sunday.
The company paid about $400 million in gas bills, $127.4 million in corporate tax and duties, and $25 million in tax on foreign shareholders' dividends, he told a meet-the-press programme.
"KAFCO is the best investment decision the government has ever made as it invested only Tk 2.0 billion and it so far received over Tk 13 billion only as dividend," Salahuddin said.
KAFCO, located at Anowara, Chittagong alongside the Karnaphuli River, is engaged in manufacturing of urea fertiliser using state-of-the-art technology.
"When Tofail Ahmed was the industries minister, he had said that KAFCO would not be able to make profit until 'Keyamat' (judgment day) while the Khaleda Zia government closed it down for one year. But now things have changed, KAFCO has started paying dividends," he said.
The CEO admitted that its foreign shareholders are doing business with the company and they were not selected through any competitive bidding process.
"We maintain quality in the plant and that's why we buy best quality products, and the foreign shareholders happen to be the producers of best quality catalysts, which are also bought by other state-owned fertiliser factories," he explained.
Salahuddin said the gas price the company pays is calculated under a formula linked with international urea price. "Under the pricing formula, the highest gas price paid by KAFCO was $10.95 per MSCF in September 2008," he said.
The average gas price per MSCF was $2.9 in 2009-10 fiscal, he added.
The company hardly receives uninterrupted gas supply, Salahuddin said adding, "Only in the 2008-08 fiscal, the company had been able to achieve its full production target."
The government stopped supplying gas supply for about 90 days during the last year and it is a clear violation of the agreement signed with the company, he said.
"The government also did not pay us any compensation for snapping gas connection," he claimed.
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