Malaysian companies are left out of the limelight

A+ A A-

A Malaysian company is losing work on a 14,000 flat construction project in Jhilmil, Keraniganj, near Dhaka. Due to various irregularities, inconsistencies and lack of financial capacity of the company, the government is going to cancel the agreement signed with them 9 years ago.

A source in the Ministry of Housing and Public Works said that the proposal to cancel the contract will be raised at the meeting of the Cabinet Committee on Economic Affairs under the chairmanship of Finance Minister Amir Khosru Mahmud Chowdhury on Tuesday.

Rajuk signed an agreement with Malaysian company BNG Global Holdings and Consortium to implement the flat construction project through public-private partnership (PPP) in 2017 during the then Awami League government.

According to the agreement, BNG Global is to construct 14,000 flats for middle-income people on 160 acres of land in Jhilmil residential area. A total of 85 buildings are planned to be constructed. Of the buildings, 60 are to be 20 storeys (including semi-basements) and 25 are to be 25 storeys (including basements). A total of 13 thousand 720 flats are supposed to be in three categories. 9 thousand 120 flats of ‘A’ class 1 thousand 550 square feet, 2 thousand 576 flats of class ‘B’ 1 thousand 750 square feet and 2 thousand 24 flats of class ‘C’ 2 thousand 400 square feet.

The cost of implementing the Jhilmil residential project, two kilometers west of the China-Bangladesh Friendship Bridge on the Buriganga River, was estimated at Tk 9,979 crore. BNG Global was supposed to invest the entire amount. But they did not invest a single rupee. In the last 9 years, no flat construction has been done. So the current government is going to cancel the contract with the company.

According to the agreement, Rajuk and private equity firm BNG Global are expected to comply with a total of 12 conditions, according to documents prepared to be tabled at the meeting of the Cabinet Committee on Economic Affairs. Of these, four conditions were met for Rajuk and eight for BNG. While Rajuk fulfilled all three conditions, BNG Global did not fulfill even one.

As per the rules, there was an obligation to fulfill the conditions within 180 days of signing the PPP agreement. On February 18, 2024, BNG Global was given a letter to meet their conditions. But they did not fulfill it.

Measles Outbreak Claims Children in Remote Bangladesh Hill Tracts as Vaccination Drive Intensifies

Read More

The document also shows that the Ministry of Housing and Public Works requested the Ministry of Foreign Affairs in October 2023 to find out whether the information provided by BNG Global is correct or not.

The Ministry of External Affairs conducted an inquiry on BNG Global Holdings through the Bangladesh High Commission in Malaysia. After that, the evaluation report of the Ministry of External Affairs stated that there were inconsistencies in the financial and other related information of the company. According to the report, as of February 2023, the company’s net profit was only $696. As a result, the Jhilmil Residential Park project will not be implemented with this institution.

Apart from this, the Ministry of Foreign Affairs informed about the project financing company Boulevard Capital Partner Limited, according to the address given by the company, their office could not be found there.

At the same time, according to a report of the International Credit Rating Agency, Boulevard Capital is a single privately owned company. The paid up capital of this company is 10 thousand Hong Kong dollars. In the currency of Bangladesh, the amount of which is 1 lakh 41 thousand taka. That is, they do not have the capacity to finance this project.

After reviewing the documents, it is also known that the Chinese company GANG Construction Engineering Company Limited filed a complaint against the Malaysian company BNG Global in the Chief Metropolitan Magistrate Court in Dhaka. It is said that two companies named BNG Global Holdings Limited and SVC Jhilmil Residential Limited have embezzled money through fraud by collecting 24 million USD investment in a joint venture in Bangladesh. The allegation is being investigated by the Police Bureau of Investigation (PBI).

Taking these aspects into consideration, RAJUK and the Ministry of Housing and Public Works have given an opinion in favor of canceling the contract with BNG Global.