Jhilmil project: Recommendation to drop Malaysian company
Malaysia based BNG Global Holding could not start the work of Jhilmil Residential Park Project in Keraniganj although six years have gone by since a deal was struck in this end. Yet, the consortium has sought permission from Rajuk to take a questionable loan of USD 600 million for the project. Under this circumstance, the stakeholders suggested the residential project should not be implemented by the BNG Global Holdings. The capacity of the BNG Global to complete the project has been questioned by a primary investigation report prepared by the Bangladesh High Commission in Malaysia.
Rajuk signed a public-private partnership (PPP) deal with BNG Global Holdings on 16 November in 2017 to develop the project site at the outskirts of Dhaka.
Diplomatic sources said Bangladesh high commission in Malaysia did an inquiry on BNG Global as per the request of the housing and public works ministry. Based on the interim assessment report on the company prepared by the high commission, the foreign ministry thinks the Malaysian company has discrepancies in its financial and other information. The company’s net profit was only USD 696 according to a document in February last year. The authorities therefore suggested the company is not given the work to implement the Jhilmil project.
Asked, Jhilmil residential park’s project director Khandakar Md Wahid Sadiq told Prothom Alo yesterday a meeting would be held about the Jhilmil project with the housing and public works secretary in chair. Many issues including Global Holdings will be discussed at the meeting.
Sources of the ministry said the meeting will convene to take a decision about Global Holdings.
Sources said the housing and public works ministry requested the foreign ministry to inquire about the capacity of project’s private partner BNG Global Holdings and Hong Kong-based financing company Boulevard Capital Partners Limited.
Rajuk sources said BNG Global Holdings sent a proposal to Rajuk about foreign loan on 14 December in 2022. The Malaysia-based company mentioned in the proposal that Hong Kong based company Boulevard Capital Partners Limited will grant USD 600 million loan for the project from its branch in Cayman Island. The Boulevard Capital will receive the loan as per the law of Barbados.
Sources said the housing and public works ministry on 14 August last year held a meeting about the project. The meeting came to a conclusion that it is not appropriate to disburse a loan of USD 600 million to a company which has authorized capital of only 1 million Malaysian ringgit and why the Hong Kong’s company would provide the loan to Malaysian company.
The meeting said finance is an important aspect to implement the PPP project. It is important to know about the private stakeholder and proposed financing company before the project’s work begins.
The meeting said finance is an important aspect to implement the PPP project. It is important to know about the private stakeholder and proposed financing company before the project’s work begins. That’s why the ministry decided to inquire about the authenticity and efficiency of BNG Global Holdings and Boulevard Capital.
The meeting decided to take help from the foreign ministry regarding the inquiry.
Primary probe in Malaysia
The foreign ministry in October directed the Bangladesh high commission in Malaysia to inquire about BNG Global Holdings. A team of the high commission then contacted BNG Global company and other relevant government offices and chambers. The high commission’s team then sent a report to the foreign ministry based on its probe.
Diplomatic sources in Kuala Lumpur said the high commission’s representatives visited the office of BNG Global Holdings. The company was registered in Malaysia in 2006. The company has authorised capital of only one million Malaysian ringgit. As per the company’s website its ventures are on construction, energy efficiency, education, research and development.
However, the high commission’s interim report mentioned that the BNG Global was registered with Companies Commission of Malaysia, the statutory body that deals with the country’s internal trade and consumer rights, in 2009. The company said it works on education and training facilities and as a business development consultant.