BJMC being bled dry

Allegations have arisen about corruption at every level of management in the state-owned Bangladesh Jute Mills Corporation that has 26 mills under its umbrella. Over the last decade, it saw profit only during 2010-11 fiscal year when it registered a measly Tk 14 crore. Otherwise, losses ranged from Tk 66 – 700 crore per annum. This is appalling given that BJMC remains the largest manufacturer and exporter of jute goods in the world. Every government has come and created a coterie of businessmen who have colluded with unscrupulous mill officials to buy jute products at run-down prices, which were exported to end users after a mark up.

The situation with BJMC is somewhat akin to the state-owned banks which keep incurring losses but are propped up with cash infusion from the state coffer. Indeed, the BJMC has received government handouts to the tune of Tk 6,000 crore since 2009 and it owes external creditors Tk1,200 crore. That the management of the Corporation has always been deputed from the bureaucracy has hardly helped matters.As there is no question of transparency in its dealings, it is not surprising that graft has become institutionalised at BJMC.

Economics dictate that the government hand over management to professionals in the jute industry to turn things around. Without product development and diversification, the BJMC cannot hope to compete in world markets where jute has seen resurgence as a fully biodegradable product. We hope authorities will revamp the BJMC so that it becomes a cash cow instead of a drain on the national exchequer.