Govt to use self-governed agencies’ surplus funds as Bill passes

Parliament has passed a Bill to allow the use of surplus funds of self-governed state agencies by the government amid strong opposition and harsh criticism.

The BNP walked out in protest against the Bill while the Jatiya Party voted ‘No’ after heated arguments on Wednesday.

The opposition MPs also withdrew en masse their amendment proposals on the Bill in a rare show of protest calling it a “dark law”.

They alleged the government's “failure to stop plundering” in the financial sector forced it to eye the idle funds of the agencies to fund its ambitious projects.

They also fear that it will put the troubled banking sector in “total disarray” as the funds will be withdrawn from the banks.

Lawmakers in parliament during a session. PID File Photo

During the arguments, AHM Mustafa Kamal claimed himself the “The No. 1 Finance Minister of the World” when an opposition MP questioned his business links.

As many as 61 agencies, including autonomous, semi-autonomous, statutory government authorities and public non-financial corporations will have to deposit parts of their surplus funds into the government exchequer once the president signs the Bill into law.

They will be able to keep their operational costs plus 25 percent of the amounts as emergency funds. They will also set aside the money to fund their projects and pay pensions and dividend funds.

The surplus funds of the self-governed agencies’ total over Tk 2.12 trillion, according to latest government data.

The government initiated the Bill after its borrowings from the banks to fund big infrastructure projects started to rise rapidly putting private investment under pressure.

The Bill was placed in parliament and sent to the standing committee on the finance ministry on Jan 15 after clearance by the cabinet in September last year.

Tabling the Bill for passage on Wednesday, Kamal said it is prudent to enact the law for using the idle funds of the people for their welfare.

But Rumeen Farhana, the BNP MP from a seat reserved for women, questioned the move.

The government cannot fund development with revenue because of “limitless lootings” in the share markets and projects while the financial institutions are in a bad shape.

“The shareholders will face losses if the money is taken from the banks,” she added.

“I am afraid the money in my account will be withdrawn after some days. I am thinking about taking the money home,” the Jatiya Party’s Fakhrul Imam said.

He also asked how the government initiated the law “even after Prime Minister Sheikh Hasina and Kamal, a chartered accountant by training,” held meetings with the bank owners.

“It’s a dark law designed to draw all the money. It’s true that money is needed for development. But you also need to consider your capacity. The banks will be in total disarray if the money is taken,” said the BNP’s Harunur Rashid.

The government took projects beyond its capacity amid a lack of foreign investment, he said.

Bangladesh’s financial system will “collapse” once the Bill becomes a law, Jatiya Party’s Kazi Firoz Rashid warned.

‘I AM THE NO. 1’

The opposition MPs made references to Kamal’s successes in education and business but criticised him for proposing the law.

“Even an insane person won’t believe that he [Kamal] doesn’t understand economy. Then wherein does the problem lie? It’s his lack of goodwill,” said Rumeen.

AHM Mustafa Kamal. File Photo

Jatiya Party MP Mujibul Haque Chunnu said they expected Kamal, “a successful businessman”, to better Bangladesh’s economy.

“But exactly the same thing happened when a businessman became finance minister,” he added.

“What lotus will this law bring to Bangladesh’s economy?” Shameem Haider Patwary, another MP from the opposition party, asked in reference to Kamal, who is popularly known as ‘Lotus Kamal’.

The Bill is “so condemnable that it “cannot be corrected”, he said.

In response to the criticisms, Kamal said, “I didn’t enjoy hearing so many lectures. You [BNP and Jatiya Party] were in charge once. What did you do? You need to know what’s happening in the world. Bangladesh is an example to other countries.”

“Saifur Rahman [late finance minister of the BNP government] was a chartered accountant like me. I am the No. 1 finance minister in the world. It’s not proper to talk at personal levels. I can say many things as well. I know about everyone,” he said.

The Banker, a UK-based business magazine, had named him the Finance Minister of the Year for Asia Pacific and Global Award-2020 recently.