How long will the state-owned factories incur huge losses?

The factories under five state agencies are incurring losses after losses. As per government data, these factories recorded a loss of Tk 3.25 billion in the fiscal year 2008-09. The figure has jumped to Tk 18.51 billion in 2017-18, meaning the losses have increased by six times in the last decade. Needless to say, it was the public whose money went down the drain.

Among these five organisations, Bangladesh Chemical Industries Corporation (BCIC), Bangladesh Sugar and Food Industries Corporation (BSFIC), and Bangladesh Steel and Engineering Corporation (BSEC) are under the industries ministry while Bangladesh Jute Mills Corporation (BJMC) and Bangladesh Textile Mills Corporation (BTMC) are under the jute ministry.

Although they are different organisations under different ministries, they are all incurring losses in the same way, but none really care to address the problem.
After the liberation, the government took over the factories reluctantly, as per the new economic policy.

These factories have always incurred losses because of the government’s lack of foresight and corruption, mismanagement and lack of accountability of the staff.
As a result, in the last 48 years, many factories, including the famous Adamjee Jute Mill, were either shut down or sold to private owners.

Many took huge amount of bank loans posing as entrepreneurs and never paid them back. But many private companies did make profits in this period, because they were honest and skilled.

It is very natural to ask – if the private organisations can make profits, why not the state-owned ones?

A few days back, the workers of the state-owned factories took to the streets demanding their salaries and arrears. The government has provided the owners a fund of Tk 3.5 billion to address the immediate crisis, but how long will things go this way?

The BSFIC has mentioned old factories, lack of running capital and not hiking the price of sugar as reasons for the losses. The situation in the jute industry is worse. Many machines are almost outdated, operating in poor condition. Yet the authorities are letting them run, without taking proper steps to solve the problem. Moreover, corruption of the officials and irregularities in the name of trade union are also rampant. The BJMC chairman is trying to blame it on the workers, but he is not admitting their mistakes.

Although the government seems indifferent to the problems, experts have taken the time to look deep into the crisis and recommended ways to address the situation. The government should act as per the suggestions. If needed, they should form a committee of experts. But that committee should not only exist on paper.
The authorities have to shoulder the responsibility of the losses. If the workers are to be blamed for the losses, why those who supervise them should not be held accountable, too? And if the management committees are responsible, how can the government deny their failure?

If any factories are being privatised, it needs to be checked if they have the ability to operate them in the long run. The authorities need to be careful so that inexperienced people do not get involved just to make away with huge amounts from the banks in the name of loans. The government had previously sold factories to incompetent people and had to dearly pay for it later. We do not want to see that happen again.