Need for policy for overseas shipping agents' operation
Saturday, 29 November 2008
Ibne Sakhawat
Recently, some national dailies published reports on employment of foreigners in local shipping business by way of what they said flouting the law of the land.
The shipping companies are taking a large amount of money through the foreigners using various types of manoeuvring and irregular means in the absence of fixed rules for the foreign expatriates to work in the local shipping companies.
There are quite a few instances where these foreigners get into Bangladesh as local representative of the parent company, but later they ultimately become the holders of the highest post as the Managing Director.
In this way, they become the virtual owners and controlling authority of the entire business activities. As there is hardly any foreign investment in the business, there are strong reactions prevailing in the local shipping business communities as those are basically service-oriented entities.
One such entrepreneur having over 40 years' experience in the sector had commented with frustration that they are running the shipping business in the country very successfully and efficiently. But as there are no specific government rules and regulations to guide the business, such foreigners are taking advantage of these loopholes and siphoning off a substantial amount of money in foreign currency out of the country. Strangely though, most of those so-called expatriates lack efficiency and calibre compared to their local counterparts. That is why this writer has attempted to draw the attention of the government through media to address the issue.
Sources indicate that these foreigners are drawing salaries three to ten times more than the locals, which comes to around four to ten million takas. In addition, a large chunk of money are also being spent on account of their house rents, maintenance of cars etc., as 'fringe benefits' per month. Though such expenses are supposed to be borne by the foreign sipping companies, those, in practice, are imposed on the shoulders of their local agents, who are forced to bear such unreasonable expenses. In this process, in the name of salary and other benefits, it has turned out to be a huge drain on our resources in terms of foreign currency.
Further, it is also alleged that these foreign representatives are also involved in activities that go against the country's interest. As an example, the business quarters have referred to the issue of Motivated Collection (M/C) of so-called Documentations Fee (D/F) for every import made in the country. Such foreigners are allegedly directly involved in such transactions.
In the process, substantial amounts of dollars have been taken out of the country. After 1/11, the caretaker government (CTG) had stopped such practices. The members of the local business community feel that since the creation of Bangladesh, people engaged in our shipping business have been successfully conducting their business during the last 37 years. Back in 1992, a foreign shipping lines, first appointed an expatriate and since then this trend is in force, though there is no need for such foreign expatriates in this respect. The government needs to frame a policy at the earliest, reflecting the legitimate interests of the members o the local shipping community, to set the guidelines for all concerned about doing the related business in the country.
This step will, at last, rid the country of the problem of 'unnecessary' employment of foreign expatriates in local shipping business, where their local counterparts can do the job ease at cost effectively. It is reassuring to note here that the National Board of Revenue (NBR) has recently requested the ministry of finance to frame a specific policy, cancelling all previous ones, with clear direction about what will be the ownership position in joint venture business in the related sector.
Recently, some national dailies published reports on employment of foreigners in local shipping business by way of what they said flouting the law of the land.
The shipping companies are taking a large amount of money through the foreigners using various types of manoeuvring and irregular means in the absence of fixed rules for the foreign expatriates to work in the local shipping companies.
There are quite a few instances where these foreigners get into Bangladesh as local representative of the parent company, but later they ultimately become the holders of the highest post as the Managing Director.
In this way, they become the virtual owners and controlling authority of the entire business activities. As there is hardly any foreign investment in the business, there are strong reactions prevailing in the local shipping business communities as those are basically service-oriented entities.
One such entrepreneur having over 40 years' experience in the sector had commented with frustration that they are running the shipping business in the country very successfully and efficiently. But as there are no specific government rules and regulations to guide the business, such foreigners are taking advantage of these loopholes and siphoning off a substantial amount of money in foreign currency out of the country. Strangely though, most of those so-called expatriates lack efficiency and calibre compared to their local counterparts. That is why this writer has attempted to draw the attention of the government through media to address the issue.
Sources indicate that these foreigners are drawing salaries three to ten times more than the locals, which comes to around four to ten million takas. In addition, a large chunk of money are also being spent on account of their house rents, maintenance of cars etc., as 'fringe benefits' per month. Though such expenses are supposed to be borne by the foreign sipping companies, those, in practice, are imposed on the shoulders of their local agents, who are forced to bear such unreasonable expenses. In this process, in the name of salary and other benefits, it has turned out to be a huge drain on our resources in terms of foreign currency.
Further, it is also alleged that these foreign representatives are also involved in activities that go against the country's interest. As an example, the business quarters have referred to the issue of Motivated Collection (M/C) of so-called Documentations Fee (D/F) for every import made in the country. Such foreigners are allegedly directly involved in such transactions.
In the process, substantial amounts of dollars have been taken out of the country. After 1/11, the caretaker government (CTG) had stopped such practices. The members of the local business community feel that since the creation of Bangladesh, people engaged in our shipping business have been successfully conducting their business during the last 37 years. Back in 1992, a foreign shipping lines, first appointed an expatriate and since then this trend is in force, though there is no need for such foreign expatriates in this respect. The government needs to frame a policy at the earliest, reflecting the legitimate interests of the members o the local shipping community, to set the guidelines for all concerned about doing the related business in the country.
This step will, at last, rid the country of the problem of 'unnecessary' employment of foreign expatriates in local shipping business, where their local counterparts can do the job ease at cost effectively. It is reassuring to note here that the National Board of Revenue (NBR) has recently requested the ministry of finance to frame a specific policy, cancelling all previous ones, with clear direction about what will be the ownership position in joint venture business in the related sector.