Dealing with problem of foreigners' illegal stay

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Shahiduzzaman Khan
A considerable number of foreign nationals have been working in the country's various establishments for long. Many of them are allegedly siphoning off huge foreign exchange from Bangladesh in the absence of proper monitoring by the authorities concerned. No effective measures have been taken so far against them excepting some occasional roundups.
A report published in the FE last week suggested that the Board of Investment (BoI) cancelled work permits of 23 highly paid foreign nationals working with a famous business house for evading tax. The BoI rules prescribe a flat rate salary for foreign workers in Bangladesh. As per rules, the business house in question was supposed to pay them at a flat rate of $800 each month, but the management paid them much more, as high as $2,000. Why the deviation from the rules was made by the business houses is anybody's question.
It was learnt that the foreign citizens who work in the business house's textile mills assist the particular house in getting orders from overseas buyers. Business houses feel encouraged to employ these foreign citizens, as they do not get such assistance from the local nationals. Most of these undocumented workers are from Pakistan, India, Thailand, Sri Lanka and Korea. Many say security risks might be involved in the engagement of some of the foreign nationals working clandestinely.
Some private business establishments see the employment of so-called foreign experts as a means to expand their own businesses. Let's see why local businesses hire expatriates. For example, a cent percent export-oriented garments manufacturer hires expatriates to get more work orders for his own business. For business promotion, he prefers to employ an Indian, a Sri Lankan or an American as the people of those countries mainly head the buying houses in the country.
Local indenters alleged that some foreigners were also doing indenting business in the country exploiting the liberal import regime. They are doing the business here without registration, certification or any other legal basis and causing a huge loss to the national exchequer. The foreigners in indenting business do not pay any taxes and even do not bother to have the association's membership.
With the introduction of the direct proforma invoice (DPI) system, a section of local vested groups indulges in under-invoicing and over-invoicing to make money. At least two-thirds of the country's $12 billion plus import are done by the private sector and more than $80 million is generated as commission from this business. In many cases, commission amounts are not remitted into the country and using direct invoice system many businessmen are allegedly transferring money from the country.
A rough estimate says an amount between US$80 million and $160 million is being remitted illegally to the foreign countries a year by way of under invoicing in case of exports and over invoicing in the matter of imports while the official figures about the annual imported goods stood at $12.40 billion. Yet more than 100,000 foreign nationals are illegally operating in the indenting business in the country without any valid documents.
However, intelligence reports say at least 2,00,000 illegal immigrants are staying in Bangladesh. A high-level committee was formed to track down the illegal migrants during the immediate past 4-party alliance government. The committee was given one month's time to submit a report on the state of affairs. It was not known as to whether the report was submitted or not.
A country of huge manpower resources, Bangladesh is having this unprecedented number of immigrants for the last few years. Slowly but steadily, foreigners are entering the country in the name of investors, experts and 'extra-ordinarily' qualified professionals. In the name of investors, many foreigners have arrived and established their offices in the posh metropolitan areas and are engaging in many clandestine businesses. Finding no jobs in their home country, many information technology (IT) specialists have come to Bangladesh and opened IT training centres throughout the country. They are minting money from the local citizens by offering cheap IT courses that are making computer operators, not specialists. Indians are reportedly heading this long list of so-called experts.
A section of local businessmen, aided by some corrupt government officials, are apparently responsible for the presence of illegal immigrants. Knowingly or unknowingly, the government has so far failed to take any action against the illegal migrants. These foreigners are taking away huge foreign exchange from the country which the Bangladeshis abroad earn and remit home through hard work. For extended stay of these foreigners, local business houses assign special officers to get legal or forged work permits from the authorities concerned in exchange of huge kickbacks. In the same way, their visas are extended in connivance with a section of passport and immigration officials. Even at the expiry of one's contract, he finds no trouble in leaving the country with the whole booty.
What is baffling is that the foreigners are having a gradual grip on the country's most sensitive sectors like information technology (IT), telecommunications, textile, energy, readymade garments, mining, exploration of oil etc. Some of them are involved in country's financial sector as well. The trend gives a negative signal for the country.
The government must take necessary steps for safeguarding the country's hard-earned foreign exchange, protecting national interest, ensuring proper collection of taxes and duties and repatriation of indenting commission through official channels, stopping money laundering, ensuring the accountability of all those involved in business-related activities and disallowing illegal stay of the foreigners and their unlawful business.
szkhan@thefinancialexpress-bd.com