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Holiday's 43rd Birthday
Holiday desk
With the passage of time the weekly HOLIDAY has traversed forty-two years as the nation's distinguished views-paper in English. Today it is 43 years old, which is a fairly long period in a country where lifespan of newspapers is proverbially short.
Obviously, and certainly, the HOLIDAY succeeded in keeping its head ever aloft through intrepid journalism. May HOLIDAY live long as a trail blazer. When other fellow travellers hesitated and faltered, HOLIDAY dared to keep going, knowing well the hazard that it had to face. HOLIDAY's is a many-splendoured life to be seriously reckoned with as a highly regarded journal.
A birthday conjures up memories of past years that have been passed through. Looking back, happily HOLIDAY's eventful stay in country's media scene has been quite action-packed, confronting one unbending challenge after another impediment under various regimes.
It required an enormous amount of unrelenting bravery to continue the HOLIDAY' onward voyage. His guts emanated from resolute determination guided by inner strength and virtues that dictated him to defend the right cause of his fellow people who were subdued by a formidably dictatorial brute force. In the face of overwhelming odds in the quasi-colonial rule of Pakistan, he with his mighty pen kept on his unceasing battle - his imperative moral task.
Holiday commenced its journey as a vehicle of vox populi and champion of the radical left with Maulana Bhashani as the mentor-philosopher, the statesman who had estranged himself in the mid-fifties from the very party (Awami League) he had founded in 1949 with great stalwarts in the subcontinental politics as his comrades; but most of whom parted their ways, forsake the pioneer of opposition politics and the first robust and vigorous voice of conscience and dissent in Pakistan. A fearless fighter of Enayetullah Khan's stature needed an undaunted commander and mentor like Bhashani who was a living inspiration and moving spirit of all progressive streams of the day.
When one's goal is ideologically sound one is sure to achieve glory; and following this ideal HOLIDAY entered a totally new and uncharted path and nonchalantly strolled past announcing its arrival with a bang! And it did not have to look back. Looking back, in the mid-sixties there appeared on the print journalism scene a crusader journalist, a maverick, an enfant terrible Enayetullah Khan, who must have inspired thousands of his socially and politically alert readers and associates, but remained a loner as none among his contemporaries dared As Bangladesh won freedom, the new Awami League Government began a witch hunting of sorts condemning and victimising innocent people as 'collaborators' whose only fault was that they had not migrated to India in 1971. It was at that crucial time when HOLIDAY headlined the famous special report to protect the powerless: "65 million collaborators."
On this auspicious day, we in HOLIDAY reassure its late lamented founder Enayetulla Khan's departed soul that we would stay the course that he so painstakingly established.
We in HOLIDAY also offer our thanks and gratitude to its readers, writers, patrons and well-wishers for their unstinted love, support and cooperation.
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SCANDAL SHAKES CORPORATE WORLD
Time to sift fact from fiction in Niko fiasco
M. Shahidul Islam in Toronto
In the murky world of corporate corruption and influence-peddling, all seems fair until the so called 'interventions from the provident' change the rule of the game. Like so many tantalizing stories involving elephantine corruption by leaders in the so called developing nations and the multinationals with which corrupt deals are done, the Niko fiasco too is evoking immense curiosity across the globe.
The story has its share of facts and fiction woven into a lurid narrative, something not uncommon in the myriad of corporate scandals dotting the span of this century. Yet, given the high stakes that Bangladesh has in ensuring an investment- friendly- ambiance, it's time to sift the fiction from the facts.
Observers believe the litigation filed by the Anti-Corruption Commission (ACC) on December 8 against the two former Prime Ministers and 10 others for 'dubious contracts' awarded to the Calgary-based Niko Resources Ltd. (listed in Toronto stock exchange as TSX:NKO) may have serious implications for domestic politics and international investments alike.
The accused are blamed for awarding contracts to a foreign company without proper bidding procedures being followed, resulting in a loss to the country of 236.44 billion taka (US$3.45 billion). The ACC also blamed the accused of abuse of power to get the deals done. The judiciary now has a challenging assignment to ensure the fictions are yanked out of the bedrocks of truths while the world around observes the proceedings of this case with passion and predilection.
Lest we forget, Niko Resources Ltd. is the third largest investor in Bangladesh's energy sector. The indictment claims, in 1997, the company participated in a tender bid for oil and gas exploration but was declared unfit by a government committee. Allegedly in collusion with then Prime Minsiter Sheikh Hasina and her six co-accused, Niko later collected secret data about Chhatak and some other gas fields having huge gas reserves, submitted a letter of intent for exploring the gas fields in Fenchuganj, Chhatak and Kamta through a joint venture with Petrobangla, and, violating proper procedures, got the contract due to undue intervention from the PMO. In November 1997, the then energy secretary Towfiq-e-Elahi Chowdhury okayed the proposal.
Then, on June 28, 1998, Niko again submitted a proposal to the government for developing what it said 'marginalised' gas field in Tengratila (Chhatak) and the 'abandoned' gas fields in
Kamta and Feni. In 1999, Niko signed a framework of understanding with the Bapex for the development and production of hydrocarbons from the three fields and, the then energy secretary prepared a proposal for the deal, terming the gas fields as 'marginalised and abandoned' to undercut the market value.
Sheikh Hasina approved the proposal, following which her government prepared a draft agreement for Niko in 2001. Hasina's government also signed a memorandum of understanding (MoU) with Niko, awarding it a lopsided contract for extracting gas from the three fields.
The indictment alleges that, due to this 'improperly concluded' contract, Bangladesh incurred a loss of about 1,794 billion cubic feet (bcf) of gas worth Tk 13,630.50crore.
Almost similar allegations are raised against Khaleda Zia who, despite being aware of the facts relating to the huge loss being incurred by the public exchequer, gave verbal direction in 2003 to her officials for arranging the signing of a joint venture agreement (JVA) between Bapex and Niko, allegedly for personal gains as well as for Niko's benefit. Thus the signing on October 16, 2003 of an agreement with Bapex (50-50) was consummated and Niko invested $15 million in the project.
The indictment further claims, through the agreement, Niko got an opportunity to extract 1,744 bcf of gas from Chhatak and Feni gas fields, putting the country in a loss of at least Tk 10,000 crore.
The deals consummated under alleged secrecy allowed Niko to begin production in November 2004, culminating into a huge extraction of gas to the tune of nearly 51 mcf per day. In comparison with the company's overall global output of 87mcf, Bangladesh became the mainstay of Niko's global operation ever since, although, it employed less than 50 staff members to run its operation in the country. By late 2007, Niko also created a market capitalisation of nearly $4.4 billion. Niko runs a major operation in India too.
It is widely believed that, due to the windfall gains in Bangladesh made by secret dealings and aggressive marketing, Niko became rich overnight. In September 2003, the company bought the entire stakes from San Ramon oil giant (Chevron-Texaco Corp.), making Niko the owner of Chevron International Bangladesh Ltd. too, which owned a 60 per cent interest in Bangladesh's Block 9. Niko owns the 2,656-square-mile area of Block 9, which includes Dhaka, the capital of the nation, along with Tullow Bangladesh Ltd., (with a 30 per cent interest). Curiously, the Bapex retained only 10 percent stake in this precious and strategically important block.
It is also widely believed that the alleged shoddy deal with Niko had resulted in withdrawal from the country of Chevron Texaco (the second largest multinational in the country) and the Royal Dutch/Shell Group of Cos. that sold its upstream assets to Cairn Energy PLC of Great Britain for $50 million.
That is the story on the surface, in a nutshell. Beneath the surface, there is more to it than the blames that have been pouring onto Niko for years. An insight into Niko's birth and growth indicates that it is unfair to blame the company for turning into riches from rags by aggressively pursuing its Bangladesh operations, which any thriving multinational will do. The company has a track record of working hard to hit success. In Bangladesh too, the company announced in May 2004 of a new gas discovery in the Feni Block before a series of misfortune began to relegate its stature into a controversial entity.
That misfortune started with the outbreak of two fires on January 7 and June 24, 2005 and the virtual destruction of the Tengratila (Chatak) gas field. Following those devastations, two bodies on gas, oil and coal have rejected the government-formed probe committee report, saying the damage was much higher than what the government committee had said.
The Citizens' Commission on Gas, Oil and Coal and the National Committee to Protect Oil, Gas, Natural Resources, Power and Port rejected the report of the committee headed by M. Tamim, chairman of the petroleum engineering department of the BUET. The Citizens' Commission concluded that 3 bcf gas, worth about Tk 30 crore had been burnt in the blow-outs. The commission formed by the Bangladesh Economic Association estimated at least 115 bcf gas was damaged while the national committee claimed the loss to the tune of Tk 40,000 crore.
The Unocol has had the nightmare of undergoing a similar trauma after the Magurchara blowouts in 1997. But the Niko's travails seemed worst, especially the estimates of the damage being so varying and the mechanism to resolve the issue proving so unsuccessful for so long.
The calamity was bound to alarm the government of the day as demands echoed for compensation from Niko. On 6th December 2005, Petrobangla sent a letter to Niko, claiming compensation for 3 bcf of gas damages and for the accompanying environmental damage worth about Taka 84 crores. Petrobangla demanded that a similar amount of gas be supplied free of charge as compensation. Pending to final negotiations, Niko was, however, allowed to start production in the Feni field and, due to pressure from the Energy ministry, Petrobangla was forced to pay Niko US$4 million in two instalments despite the price of gas remaining unsettled. This too has become a point of concern for the ACC investigators.
Another twist in the story, spun ostensibly to absolve the culpability of Khaleda Zia, is worth its merit. In early September 2005, a three-member committee headed by a director-general of the PMO, Mohammad Shah Alam, found the framework of understanding signed in 1999 - based on which the joint-venture agreement was signed- 'against the interest of the country.' The committee, however, concluded that only the then state minister for energy and mineral resources, AKM Mosharraf Hossain, approved Niko's joint-venture agreement with Bapex and "no approval was taken from the minister for energy and mineral resources (the prime minister) for signing the agreement.'
Mosharraf, who lost his job in July 2005 over a scandal stirred by his acceptance of a luxurious vehicle from Niko, later rebutted the conclusion drawn by the PMO official and said, 'As far as I can remember, the PM's approval of the joint-venture agreement was given on March 18, 2003.' He added, "the then prime minister (Sheikh Hasina) had already approved the joint-venture agreement on June 14, 2001.' Mosharraf also confessed to the investigators many other secrets of the Niko and other energy deals since his arrest by joint forces, it was learnt.
The scandal even rocked the judiciary at one stage. The High Court on September 12, 2005 directed the government to stop gas payment to Niko and freeze all its bank accounts. The order followed the filing of a Public Interest Litigation (PIL) by three human rights organisations that challenged the validity of the joint venture agreement of October 16, 2003 between Niko and Bapex.
The court also asked the government for submission of the government- formed committees' reports for each of the blowouts along with the investigation reports of those committees (filed on February 7, April 13, June 4, August 13 and 28, and September 3, respectively) which found Niko's operation and drilling responsible for the two blowouts.
Despite that, the government and the Niko seemed to have re-stitched by then a working relationship while another verdict from the High Court in 2006 lifted the injunction that had hitherto prevented Petrobangla from concluding any Production Sharing Contracts (PSC) with foreign companies. Emboldened by this court decision, French oil and gas group Total announced the acquisition of exploration blocks offshore in south-eastern Bangladesh and the Niko and its joint venture partner, Bapex, registered their interest in purchasing gas fields. UK's Cairn Energy plc too extended a production-sharing agreement with Bangladesh for another three years to explore gas extraction.
Thus, on March 10, 2006, Niko announced it had resumed gas production at the Feni field after what it said a commitment from the government on payment of outstanding dues.
What followed is inexplicable. Nothing has tarnished the image of Niko in Bangladesh as much as did an orchestrated 'media game' within weeks, ostensibly to create pressure on the government. Canadian newspaper Globe and Mail ran a report on April 1, 2006 on the "Bangladesh Blowout" in which the paper's reporter Geoffrey York tried to portray Niko as an "innocent victim" of Bangladesh's hostile and corrupt environment. The paper quoted a senior Niko official as saying: "the atmosphere in Bangladesh is more vindictive than he had anticipated. I've never experienced anything like it before. It is amazing. Anything happens and someone has to be hanged. It is like a national crisis."
That the nation was indeed mired in a crisis is anybody's guess, as the imposition of the emergency and the postponement of scheduled election in February 2007 would show. But, before the 'provident' intervened to save Bangladesh in February 2007, the former BNP regime tried desperately to salvage its sinking image.
Following the publication of the Globe & Mail story, the Board of Investment (BOI) said in early may 2006 it would not assist Niko in getting on-arrival visas for the company officials as the government finds Niko's reply to a show cause notice served on April 14 as 'unacceptable'. The show cause notice sought an explanation from Niko why it had brought a Canadian reporter in the guise of a company adviser and tarnished the country's image by publishing a report in a Canadian newspaper that termed Bangladesh as 'vindictive'.
It became evident later that Niko did play a trick while having the Canadian reporter inside Bangladesh. Replying to the BOI's show- cause notice, Niko admitted its mistake and said, 'The description of York as an adviser was purely due to an honest clerical error. In drafting the letter, our office used a pro-forma from a previous draft available on the computer, which was earlier used with respect to the visit of one of our advisers to Bangladesh. The statement signed by Brian J. Adolph, Niko's country manager, added, "Due to an oversight in drafting the letter, the words 'Our Adviser' were not deleted and replaced by the appropriate words describing York as a journalist."
Despite this media stunt and the stern reaction from the government, Niko seemed to have weathered the storm and, on August 25, 2006, it announced that a US$250-million lawsuit against the company had been dismissed in Bangladesh. Then, in early October 2007, it reported that discussion had resumed to resolve the protracted dispute over compensation for the two blowouts in Tangratila.
Niko had insisted earlier that the dispute be resolved through arbitration, which Petrobangla reportedly rejected. The company also claimed it spent over US $75 million between January and October 2005 to control the original blowout and to secure the gas reserves. The protracted negotiations and the accompanying melodrama aside, Niko has had to suspend new drilling at the Feni gas field pending to resolving the gas price first, which became a real sticky issue.
Now that the Niko chicken has come home to roost at the House of Justice, one wonders how the once obscure Canadian multinational will cope with the challenges it faces in a country where its past actions seem to have added to the miseries of the two former Prime Ministers who already have enough charges arrayed against them. And, what lesson, if any, other multinationals and nation-states will draw from the Niko travails in Bangladesh?
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Dhaka abdicates LDC leadership in Bali
Sadeq Khan
Bangladesh has kept its cool through the devastating ordeal of Cyclone Sidr, a catastrophe that sharply reminded the nation and indeed the international community of the perils of climate change for islands and delta lands like Bangladesh that are particularly vulnerable to sea-rise and caprices of weather from global warming. Bangladesh prepared for the 13th conference in Bali in Indonesia of the parties to the UN Framework Convention for climate Change. But the caretaker government of Bangladesh appears to have lost its head over how to make its mark in that conference.
Led by the Adviser for Environment and Scientific Affairs, CS Karim, the Bangladesh delegation was expected to speak up for the Least Developed Countries, along with the Association of Small Island Countries in the conference. An ambassadorial-level meeting of the LDC Group, held in New York on December 5, 2007, unanimously entrusted Bangladesh to make the statement on behalf of the Group at the High-Level
Segment. The common LDC position, endorsed by the Group, should have formed the basis of the Bangladesh position. But for inexplicable reasons, Bangladesh backed out from the responsibility of speaking on behalf of the Least Developed Countries, which emit negligible quantities of greenhouse gas but suffer most from climate change. The onus of speaking for this suffering group of nations was passed on to Maldives. The Adviser heading the relevant ministry and the delegation was reported "unable to attend due to personal reasons", and the permanent representative of Bangladesh to the UN, Ms. Ismat Jahan took his place. She declined to brief the press until the negotiations were over and the Bali roadmap was finalised.
In the event, Bangladesh simply provided unqualified endorsement to the statement of the G77 and China without any prior negotiations with the influential members of that group. Such unqualified support to a group that is influenced by the likes of India and China, the two largest emitters was viewed by environmental crusaders present at the conference as betrayal of the poor nations' cause "We should have negotiated a settlement with the G77 and China first" was the outcry. "It may be the case that the United States emits a lot of greenhouse gases which is causing natural calamities like Sidr and floods, but so are India and China. If the United States and Europe killed us yesterday, the advanced developing countries are killing us today and we must speak out against that now." Critics also noted that the statement of the G77 and China group, influenced by the advanced developing countries like India, China, Brazil and Malaysia, contain elements that are nothing but the sole reflection of the interests of a few members of the G77, which happen to be the larger emitters [of greenhouse gases] among the developing world.
Initially, the Bangladesh delegation took a position that the LDC's should be vigilant about the G77 position. The permanent mission of Bangladesh at the UN also appears to have earlier supported that stand of Bangladesh, noting "If the G77 pursues the same position as outlined in the enclosed paper, we can predict that the agreement on future climate regime will hang in the balance...The process has been kept hostage by a handful of countries at the great peril of a large number of the poorest countries of the world."
But inexplicably that stand changed. Bali watchers from Bangladesh observed: "It is becoming quite obvious that this is merely a game of quid pro quo. Some delegation members of Bangladesh will surely get invited to meetings and conferences in India or China or Brazil as they compromise on the interest of the Bangladeshi milieu. These people are not really concerned about the plight of the masses. Bangladesh also suffered a similar fate in its negotiations at the World Trade Organisation where unqualified support to groups led by India and Brazil only sidelined the concerns of the least developed countries."
Failure to deliver a remarkable ministerial statement at the conference probably would not matter, as it was not the plenary session but the negotiating process that would matter most. But on that score, too, the delegation was disturbed by discontinuity. Mirza Shawkat Ali, who attended three previous conference of parties and is also the deputy director of negotiations, along with Mohammad Ziaul Haque, a deputy director in charge at the environment department, left Bali as they were allowed to attend the summit only till the high-level segment began. By contrast, the Indian delegation was led by two retired bureaucrats who had attended previous UN conferences and negotiations on environment. They knew very well which part came in for which reason for which country's intervention. Without this knowledge one tends to get lost at the negotiating table.
The morale of the Bangladesh delegation was low after what some delegation members termed as the 'take-over' by the foreign ministry at a summit on environmental issues. The cup of disappointment for Bali watchers from Bangladesh was full when it turned out that the shift of focus of the conference has been successfully engineered towards agendas more amenable and profitable for the powerful OECD members of the United Nations Framework Convention on Climate Change. To quote a commemorator on the issue: "This shift of focus comes at the cost of the interests of the majority world, including Bangladesh, which are experiencing an increasing onslaught of extreme weather events such as tropical cyclones, floods and droughts. Instead it is the easy market access of 'clean technologies' manufactured in the developed world and the burgeoning market in polluting rights that concerns over climate change have created that are dominating the agenda. In fact, there is now no secrecy over the reality that the Bali Summit will not attempt to set any roadmap towards binding reductions of greenhouse gas emissions proven to be the principle factor behind human-induced climate change."
The high level segment of framework negotiations have begun, where a statement by the executive secretary to the UN Framework convention noted that it was time to translate the scientific recommendations into policies, but stuck to his 'market-based solutions', saying, 'Business is ready to move into the low-emissions era, but needs the appropriate policy framework from governments to do so.'
By our very timid compliance with bigger players at this global conference, where our voice is indeed very weak, have we gained any louder voice in regional assertion of our vital interests? In a secondary level of diplomatic dialogue chaired jointly by Professor Rehaman Sobhan of CPD, and Ambassador Dev Mukherjee, former Indian High Commissioner in Dhaka, Foreign Adviser Iftekhar A Chowdhury yesterday said that now is the right time for India and Bangladesh to seriously negotiate on issues, since India has accepted a greater responsibility in the relationship.
Expressing deep concerns regarding the construction of dams and reservoirs in India that would deprive Bangladesh of crucial water resources, he said water sharing issues need to be addressed immediately to take the relations forward.
"Both parties should realise that if there are hills to climb, waiting would not make them any smaller."
Iftekhar said the present goodwill between the two neighbours exists because of India's acceptance of a 'higher degree of responsibilities in the conduct of bilateral relations, often without reciprocity' and the public opinion of India has improved in Bangladesh because of the understanding on the part of India of Bangladesh's need to evolve policies that would enable her to live in concord with but distinct from her larger neighbour.'
Iftekhar added that sharing of river water and the issue of diverting water from shared waterways, thorough Tipaimukh, are areas of concern that need to be addressed.
"As a lower riparian country, Bangladesh voices concern over the construction of reservoirs and dams in India and Nepal over the River Shaptakosi."
It is a solid environmental issue well articulated by the Adviser on Foreign Affairs of Bangladesh. But even at the second tier of diplomatic maneuvers, the Indian response was almost dismissive. Ambassador Dev Mukherjee said "Personally I don't see any problem here in Bangladesh with regard to construction of dams or reservoirs in India and Nepal."
He however added that the two governments must realise, their relationship is mutually beneficial as 'what is good for Bangladesh is good for India.' To the doubly flood-ravaged and Sidr-struck people of Bangladesh at the moment, such rhetoric hardly gives any consolation.
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AGRI SECTOR, I. S. M. MUST BE BOLSTERED
Dhaka worst victim of falling $ price
Faruque Ahmed
The falling value of dollar in terms of other major currencies is becoming a big issue adding to the perils of the country's inflationary buildup. Exporters and expatriate remittance senders are also slowly taking the brunt of the falling greenback as local currency here appreciated by over Taka 4 against dollar during the past couple of months.
In inter-bank transaction dollar was traded at Taka 72 six months ago while it sells now at Taka 68. Bankers add about Taka 1 as cost of transaction while dealing with clients.
"It is rather a conservative adjustment over time," said a source at Bangladesh Bank last week. Pointing to this paradoxical situation he said a greater appreciation of taka would not only discourage exports but may also discourage some expatriates to send remittance through formal channel and encourage them to do so through informal 'hundi' channel to avoid receiving less in local currency. Neither the exporters nor the remittance senders want it.
On the other hand, importers decry an over-valued dollar; as they would have to pay more in local currency on dollar's face value against the import bills. "We have to make the decision very carefully watching the impacts between the lines," the official said pointing to a complex case dominating such adjustment.
Dollar is the most powerful currency dominating the global economy over the last half century acting as the symbol of the US might. The greenback remained the main foreign currency to the world in general and to the poorer nations in particular. But it appears that the empire is now scrambling as the dollar started showing its long-term weakness.
Dollar replaced the 'gold standard' after a brief period dominated by Pound Sterling as the global currency to act as the store of value, wealth of nations, besides the medium of exchange in global trading. It remained unchallenged for quite some time but the indications now noticeable around showed that the greenback is coming under new challenges to maintain its number one position in the global currency basket. The Euro is in the forefront this time to take away the flagship of the global currency from the American hand.
But to Americans this is no less than an Iraq war but even encompasses a bigger war on the global scale this time, how to preserve and maintain the role of dollar as the world's number one currency. The message is clear: if dollar gives ground to others, the prosperity of the US economy and the society, the health of its banking, real estates business, financial institutions, stock market and its grip on the global trading system - all may also slowly start to falter.
It appears that the USA is relentlessly putting in place all measures, one after another, to correct the shortcomings in order to bring back good health to the failing dollar. But many wonder, whether the American society can achieve the goal as long as it continues wasteful expenditures in unnecessary wars, besides making friends hostile in many part of the globe on minor reasons affecting its major interests. This is a time for re-thinking by Americans and the ensuing presidential elections is bringing this opportunity to debate on the issue.
As for Bangladesh, we remained fully committed to dollar economy as we are maintaining reserves in the greenback. The USA is also one of the closest trading partner and we are also working on common political and diplomatic agenda on various global issues.
Nonetheless, the importers' perils in Bangladesh are also on the rise. A leading businessman and former director of the Dhaka Chamber of Commerce and Industry (DCCI) Shahidul Haque told this writer that the Chinese and Indian exporters with whom he has trading, no longer prefer L/Cs in dollar, they want it in euros. The Malaysian exporters are following suit.
Referring to the money market, he said in India dollar was traded at Rs 44 early this year. It sells at Rs 39 now showing an appreciation by Rs 5 or 11.37 per cent over the last several months. He said 8 Chinese Yuan was sold for a dollar early this year and it sells now for 7.35 showing an 8.1 per cent appreciation against dollar.
He said the Indian and the Chinese exporters now adding 'something plus' to export prices of their merchandise to make good the losses to the extend the dollar has faced depreciation. As a result, importers like him have to pay more in local currency adding to prices of the commodities in local market and contributing to inflation - all ultimately at the cost of the common buyers.
Exporters are also receiving less in real value over the face value of dollar to the extent of its over-valuation, but as they have no bargaining capacity to buyers from Europe or America, their profit margin is only on the decline. From this viewpoint, exporters such as garment manufacturers have to buy fabrics and other accessories with over-valued dollars but when they sell the depreciated price of dollar bring them less in local currency to the extent of the depreciation. At both ends, they are losing.
This is how small economies like Bangladesh are trying to adjust with the falling dollar value losing much as it has no leverage to switch to other currencies for quoting L/Cs and making payment.
The source said after the 9/11dollar fell to Taka 65 and the Bangladesh Bank went on massive buying to stabilise the situation. The sources, however said Bangladesh should put renewed emphasis on import substitution manufacturing (ISM) to reduce dependence on imports, besides immediate expansion in domestic agriculture to produce more cereals and spices to bring a comfortable adjustment in the balance of payment now having more payment obligation than export earnings.
Referring to dollar-euro exchange rate, the source at the central bank said euro sold at US$ 1.20 early this year while it sold at US$ 1.48 last week, down from US$ 1.80 a couple of months ago. Experts said dollar was able to stabilise threats from Yen in the past but euro now brings the acid test to hold the ground.
Dollar came under the worst pressure last month at the Riyadh OPEC summit from some of its members who demanded the dropping of dollar and switch to euro and other currencies for oil transactions. Some members claimed that dollar is now 15 per cent over-valued and they want an exit from it.
Later on, the OPEC finance minister had to agree to a formula of a currency basket, meaning OPEC members can now receive payments in other currencies on their individual choice. This may be treated a big blow to dollar's hitherto singular dominance in settling oil bills.
The worst challenge Bangladesh is going to face this time from an over-valued dollar is relating to settling the huge food import bills. As the country is preparing to import over 1.5 million tones of rice - 500,000 tones alone from India - the over-valuation will cost some hundreds of crores of taka as excess payment over the real value.
This is more important as dollar to Indian currency exchange rate stands now at Rs 39 while exchange rate with Bangladesh currency stands at Taka 68 for a dollar. For one hundred Bangladesh taka one gets now Rs 59 in Indian currency.
Thus the over-valuation of dollar to Taka and the huge exchange rate difference with India may have a triangular problem for Bangladesh, making it the worst victim in the trading. It will have negative impact not only on the balance of payment but also on the macroeconomic balance.
"We are heading towards a very bad year to maintain the household," said a banker referring to the problem, further aggravated by cyclones and recurring flooding this year.
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US troops were to help cyclone victims & global partnership
Moinuddin Naser in New York
Paul McHale, Assistant Secretary of Defense for Homeless Defense and Americas Security Affairs said that the recent presence of US military in Bangladesh was at the request of the Bangladesh Government. It was a glaring example of how the United States wants to respond to that kind of situation to develop partnership to fight disasters and terrorist activities, he added.
Paul McHale said that the security of homeland in the US requires effective global partnership. He said that the post 9/11 situation infused new thinking that the United States was in need of partnership of the allied nations of the world to make its homeland secured. He said that the US has taken decision to respond to all kinds of disastrous situation in any part of the world.
Paul McHale was speaking at a press conference specially held for the journalists covering for foreign media at the Foreign Press Center on December 6 last Thursday. Replying to a question raised by the Holiday correspondent in New York, Paul McHale said that Bangladesh was lucky in having a Commander to work for post hurricane Sidr situation in Bangladesh as the Commander who was in Bangladesh was from pacific Command who had experience in working in Pakistan after tremor and in India after Tsunami. The previous experience could well be utilised in Bangladesh during the recent Operation Angel-2 in Bangladesh.
Paul McHale said that during the Katrina disaster 72,000 US troops were deployed for post cyclone rehabilitation. The task was not easy and the troops' deployment was helpful to restore normalcy in New Orleans. The US administration think that deployment of the US troops in time of need in any disastrous situation may ultimately help develop partnership in all other situation between US and other global partner of the U.S.
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Split in BNP widens as unity move falters
Shamsuddin Ahmed
Eris, the evil goddess of ancient Greek, dropped the apple of discord that led to the Trojan War and destruction of the world's richest and famous city. And now in Bangladesh, certain evil force inimical to this nation seems to have lobbed the fair apple making the two lady politicians fighting for it. Timely measures had stopped the anarchy and brutal killings on the street. Finally, the two fighting ladies have been caged.
Political observers say that the odds have not ended there. The apple of discord has poised to divide the nation that may lead to a perilous situation. BNP that rallied round the nationalist forces is divided. Resurgence of a dead issue of war criminals is indeed worrying the entire nation.
Indications available from both camps of BNP suggest that unity is unlikely in the near future. BNP secretary general Khandkar Delwar Hossain finds that the popular support of Khaleda Zia is alive across the country. That made him rigid and set strict and strategic conditions - uphold expulsion of Abdul Mannan Bhuiya and Ashraf from the party, dissolution of the standing committee with Saifur Rahman and its decisions. The stance of Delwar manifested the ego of Khaleda Zia, which she nurtured sitting in prison.
Reformist leaders Saifur Rahman and Hafizuddin are confident that that support to Khaleda will die down shortly. Trial of Khaleda in Niko scam case has started with the prospect of a conviction. Her son and BNP senior joint
secretary general Tarique Rahman facing a number of criminal cases is also faces conviction. They are bound to lose people's confidence when their misdeeds and corruption are exposed in the court of law.
According to a reformist leader, the student front Jatiya Chhatra Dal and youth front Jubo Dal, which were basically linked with Hawa Bhaban led by Tarique Rahman. He had succeeded in strengthening both the fronts across the country. Grassroots level leaders of JCD and Jubo Dal are still hopeful of return to the hey days. The beneficiaries are bound to withdraw support when they will find the prospect of return of their supremo to power is bleak. Similarly, the former MPs of the party who are now on the fence will join them finding the prospect of re-election in the proposed parliamentary election.
These are expectation of the rival groups of BNP that remains divided with no sign of unity despite efforts by some saner elements of the party.
It can be safely deduced that certain evil force within or without the country has prompted resurgence of the issue of war criminal targeting the Jamaat-e-Islami in a bid to divide the nation. Awami League and its allies have launched a virulent campaign to isolate Jamaat in the county. They have urged the Election Commission not to register Jamaat as a political entity and allow it to take part in the proposed national election.
This is a political issue and must be settled politically. But political analysts say there is no reason to undermine Jamaat. The party took part in the previous elections, gained lot of strength in some vital sectors. Certainly it is not carrying brief of Jamaat but the reality is that some senior Awami League leaders also admit it.
Awami League has decided to boycott the state function on the Victory Day at Bangabhaban on the plea that Jamaat leaders who had opposed independence were also invited. Asked if they attended such functions along with Jamaat in the past, Suranjit Sengupta avoiding direct reply said the situation now is different with the resurgence of the war criminal issue in the forefront.
Admittedly politics is not a clean game. The word NO is absent in political dictionary. Awami League now opposing Jamaat tooth and nail had reportedly sent emissary in 1996 to its leader Gholam Azam with a proposal for formation of political alliance. They had joined hands with the Jamaat to fight Ershad and again they had formed government with Ershad's support in 1996. They also tried to break the BNP-led four party alliance and attempted to align with Jamaat before forming electoral alliance with two Islamic parties in December last year. In politics anything can happen and who can say that Awami League will not form government with the Jamaat in future? However, some of the Jamaat leaders' recent provocation against liberation war and war criminal issue may have vitiated the atmosphere for that to happen in the near future.
This correspondent had the privilege of coming close to slain President Ziaur Rahman who is acclaimed as a leader with vision, foresightedness, sagacity and unquestionable patriotism even by is political adversaries. He used to look forward, not backward and succeeded in forging unity of different forces.
It is he who allowed contesting the election and returning to parliament by hardcore Muslim League leader Khan A Sabur, Moscowvite Prof Muzaffar Ahmed, underground Maoist leader Mohammad Toaha and Maulana Abdur Rahim of Nezam-e-Islami.
JP leader Anwar Hosain Manju who was communication minister in Sheikh Hasina's Awami League government paid glowing tributes to Ziaur Rahman. He is on record having told a public function: "Ziaur Rahman was the only leader since independence of Bangladesh who had the vision for bringing about good of the country, political foresightedness and unquestionable patriotism."
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WB VP Praful Patel arrives today
Recovery from Cyclone Sidr and longer-term disaster mitigation and adaptation systems are expected to top the agenda with the Government of Bangladesh when World Bank South Asia Vice President Praful C. Patel arrives here Friday on a three-day visit, says a press release.
In the immediate aftermath of the November 15 cyclone, the World Bank announced it could make up to US$ 250 million available to Bangladesh for needs ranging from recovery to longer-term disaster mitigation. A month after the storm, Patel will be meeting with government officials to discuss details of the Bank's support strategy. This includes quick-disbursing financial support to the budget by end-January, 2008; livelihood restoration support available by April next year; and financial support for a long-term disaster prevention and management programme.
The Bank recently provided US$ 75 million in budget support following the devastating August floods and is preparing additional support of US$ 130 million by reallocating funds from the current International Development Association commitment to Bangladesh. A few projects will also receive increased allocations to target flood-related needs.
The World Bank Vice President is expected to visit Barisal to meet with government's post-cyclone response task forces. Patel will also meet with some communities hit by the storm in the Patuakhali district to hear directly from them about how they are getting back on their feet, and recovering their sources of income and livelihood.
Back in Dhaka, Patel is expected to meet Dr. Fakhruddin Ahmed, Chief Advisor and other government officials, to discuss how the Bank can best contribute to the government's long-term disaster management efforts. In a meeting with development partners recently, Ahmed called for an important shift in attention from reacting to natural disasters to a strong focus on mitigation and prevention. He has requested the international community's support in working together to make a real difference in how Bangladesh plans for future disasters and manages for the potential impact of climate change. Ahmed said the key components of a longer term interventions included repairing, rebuilding and extending the coastal embankment system for which about US $ 1 billion would have to be mobilised.
Patel will also meet Dr. Mirza Azizul Islam, Advisor, Finance and Planning, senior government officials, development partners, and representatives of the civil society members.
He hopes to participate in a joint-press conference with Dr Chowdhury Sajjadul Karim, Advisor Agriculture, Environment, Fisheries and Livestock, where the government and the Bank can be expected to share a particular focus on the impact of climate change on Bangladesh.
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GLIMPSES OF THE GREAT
John Stonehouse
K. Z. Islam
Although John Stonehouse does not qualify to be considered great he certainly perpetrated one of the most bizarre acts in history. Few politicians make bigger headlines with their death announcement than they manage in their lifetime. But one of Britain's brightest, most dynamic, handsome and promising politicians achieved just that in 1974. The reason for the special interest taken by colleagues, political foes and the press were twofold: firstly, because of the mysterious circumstances surrounding his demise and secondly because of the rumours of financial and romantic misbehaviour that preceded it.
The speculation proved to be justified. For the 48 year old member of parliament whose death was announced in banner headlines in all British newspapers was in fact alive, well and lounging in the sunshine 13,000 miles away.
Stonehouse almost pulled off the perfect vanishing trick - apparently disappearing from the face of the earth and leaving behind him his constituents, several ailing companies, debts of about £800,000, three children, a wife and a mistress.
Stonehouse was ambitious for power and greedy for riches. He entered the House of Commons as a Labour MP in 1957, and became a Privy Councillor, aviation minister, technology minister and eventually postmaster general. But when Labour lost power in 1970 he turned his hand to more lucrative endeavour to supplement his MP's salary.
In just 5 years he formed 20 companies including a merchant bank (believe it or not) called British Bangladesh Bank (BBB). None was successful, but trading figures were given a facelift for the benefit of accounting and investors by manipulating funds between one company and another. None of his wheeling and dealing could save them so he decided to 'die'. Incidentally, Stonehouse was merely the Chairman of BBB. BBB was a clean organisation with shareholders like GEC, GKN, Plessey and Crown Agents and they would not allow anyone to take undue advantage of the bank. BBB was sold to another merchant bank and survives even today as London Capital Securities.
Using a ruse, described by author Frederick Forsyth in his book Day of the Jackal, Stonehouse took the identity of a dead man Joseph Markham and duly obtained a passport in his name using Stonehouse's own photograph. John Stonehouse and Joseph Arthur Markham were now one and the same person. He could change his identity at will. Stonehouse opened several bank accounts and obtained credit cards in the name of Markham and another dead man Mildoon.
On 19 November 1974 Stonehouse flew to Miami with James Charlton, Deputy Chairman of one of his companies. The following day he announced that he was going for a swim in the beach and vanished. Some hours later his partner reported him missing. His clothes were found on the sand. Miami Beach Police Department sent a message to Scotland Yard: 'John Stonehouse presumed dead'
From Miami Stonehouse had no problem in getting to Australia under the name of Markham. No sooner had he arrived in Melbourne Stonehouse started transferring large amounts to Markham's accounts from Mildoon's accounts. These transfers aroused the suspicions of the banks who informed the police.
Stonehouse might have escaped. But police throughout Australia were put on the alert for another Englishman on the run: Lord Lucan, who had disappeared after murdering his family's nanny. When Victoria State Police wired Scotland Yard requesting further pictures of the peer, photographs of a second missing Briton Stonehouse were also sent. On Christmas eve 1974 'Joseph Markham' was arrested. At first he denied his real identity but eventually confessed.
Stonehouse was found guilty of 14 charges involving theft, forgery and fraud. He was jailed for 7 years.
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Debate over sadistic brutality in Guwahati
Nava Thakuria in Guwahati
The unprecedented violence in the streets of Guwahati on November 24 shook the conscience of the Assamese society. A stimulating debate has begun on media's accountability and social commitment while covering such occurrences.
The controversy arose because of a shocking incident of stripping off an agitating girl in broad daylight during the violence in Guwahati. Harsh criticism targets the media, whether it was right repeatedly showing the image of the young girl, who was chased and humiliated by thugs that day. Was it acceptable that the picture of the girl, with some portions blurred, be printed in the front pages of daily newspapers days after the incident? More serious questions were placed, whether the media persons would have the guts to run the picture if the victim came from an affluent family.
The episode began when an estimated 1,000 Adivasis (aboriginals), equipped with traditional bows and arrows, marched to the State Secretariat of Assam at Dispur to raise their voice for inclusion of the community in Scheduled Tribe list, hoping that it would benefit the community of tea plantation workers and ex-workers in higher education and employment. The demonstrators assembled in Guwahati from different parts of Assam following the initiative of All Adivasi Students' Association of Assam (AASAA). Initially the AASAA leaders decided to hold a meeting at South Beltola High School in support of their longstanding demands. But a section of participants came out for a procession aiming to reach the Secretariat.
Police first tried to prevent the demonstrators, both male and female, which only angered them. Many of them continued the march and suddenly some turned violent and began vandalising anything in sight.
Violent demonstration
"The angry demonstrators started damaging city buses, private vehicles parked at roadside, shops and even personal property. Even some pedestrians were also not spared by them. Many of them carried their traditional bows and arrows, but a few were equipped with sticks and hammers too," an eyewitness told this writer, who had recorded the incident from a nearby high-rise building.
As the protesters approached the government Secretariat complex, police and paramilitary forces came in action together and finally dispersed the rioters with teargas. Facing a ruthless action, the frightened Adivasis fled in small groups, which were then attacked by local people. Clashes continued for about an hour, with many of the Adivasi demonstrators beaten mercilessly by youths. Ultimately one protester died and 250 were injured, some very badly.
Stripped naked
Amid the chaos, a high school-level Adivasi girl was stripped naked by rowdy youths and forced to run from the crowd until local residents braved the thugs to give shelter to the humiliated girl. Pictures show the terrified girl running while people take her pictures. One local resident, named Bhagiram Barman, risked his life to save the girl from more physical assault. Before she was handed over to the police, her naked image was already recorded by the media and cell-phone users.
The incident kicked off a storm of protests. Mainstream political parties like Asom Gana Parishad, Bharatiya Janata Party and the communist parties demanded the resignation of the Congress-led coalition government.
Facing the heat of public outrages, the Tarun Gogoi government ordered two enquiries (one by the Additional Chief Secretary of Assam and the other to be conducted by R K Manisana Singh, a retired judge of Gauhati High Court). Meanwhile, the city police arrested three persons (Prasenjit Chakravarty, Ratul Barman and Sudip Chakdar) for their alleged involvement in molestation case.
Various social organisations including the North East People's Initiative, Barak Human Rights Protection Committee, Gauhati University Teachers' Association, Asom Mahila Samata Society, Journalists' Forum, Assam demanded action against those responsible for the violence and vandalism. The AASAA leaders called for a 36-hour Asom bandh (general strike), beginning on November 26, which was backed by the All Assam Tea Tribe Students' Union. The All Assam Santhal Students' Union also called another 12-hour general strike. The issue even reached both the upper and lower houses of Parliament in New Delhi, where the stripping of the girl was condemned as barbaric.
But it was the media that came under particular assault, and probably for good reason. First, a section of the media described the incident as an attack on Adivasis by Assamese demonstrators, whereas Adivasis are an integral part of the society for more than a century.
Secondly, while most of the media were vocal about the attacks on demonstrators, they remained silent on the bravery of the local residents who sheltered the victims. The media were full of pictures of the naked, running girl. Even a major English daily published her picture on its front page on November 27, a full three days after the incident took place.
Was Telegraph right?
A New Delhi-based portal highlighted the issue saying, "Should The Telegraph have carried a front page picture of an Adivasi girl running naked down a Guwahati street after being stripped by ethnic rioters? It used black strips to conceal part of her nudity but her face was only slightly pixelated." The web-page of 'The Hoot' also added, "Three readers from Tejpur university wrote a letter to the paper that while the strippers showed their barbarism, the editorial board of The Telegraph demonstrated its sadism by publishing the plight of the one stripped."
The oldest English daily of the region, The Assam Tribune editorialised, "When a section of the media continues to come up with the visual of the naked Adivasi girl even days after the incident, it is evident that their purpose is simply to sensationalise and blow things out of proportion. It is in such times that the responsibility and the credibility of the media are put to test. A responsible media should act to diffuse tension and not to arouse passions further."
The resentment also was high against some Satellite news channels. The Greater Guwahati Cable Operators' Association even blacked out two channels (NDTV and CNN-IBN) for a few days, alleging that they were telecasting a misinterpreted version of the group clash in the city. "The clashes engulfed not the agitating Adivasis and Guwahati people as a whole, but only a section of them joined the chaos. But the news channels went on airing that the residents of Guwahati beat up the Adivasis and also stripped off many girls, who took part in the procession," an official of the association commented.
Media criticised
Two powerful regional student bodies, the All Assam Students' Union and Asom Jatiyatabadi Yuba-Chhatra Parishad, also criticised the media alleging that the media repeatedly depicted the image of the Adivasi girl in an obscene way while neglecting to report that she had been rescued by a local youth who gave her shelter. "The media has every right to inform society about the happenings," a student leader said adding, "But they should not use it as a way that only humiliates the victim again and escalates ongoing tension."
Rupam Barua, a senior journalist, lamented, "We cannot rely on the argument always that media persons have the right to project anything supported by the facts (photographs). In reality, we have no right to humiliate a girl repeatedly, as she belongs to a less privileged section in the society. By accident, if the daughter of a minister or bureaucrat (or a prominent businessman) were stripped off during the Guwahati violence, had those editors projected the picture in that way?"
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