Monday, July 14, 2008

Monday World Business News

London market seeks rebound this week Agence France-Presse . London
The British stock market will seek higher ground this week, amid a raft of important economic data releases, after tumbling by almost three per cent over the past five days. The FTSE 100 index ended the week on Friday at 5,261.60 points, down 2.79 per cent or 151.2 points from the close one week earlier. That level also marked the lowest finish since October 28, 2005 and was the eighth weekly drop in a row. London plunged on Friday, mirroring heavy falls to other global stock markets, as investors worried over record high oil prices and the US financial services sector, dealers said. Next week, investors will pay close attention to British inflation and unemployment data as the FTSE 100 looks to shrug off the impact of sky-high energy costs. The price of London Brent North Sea crude oil hit a record high above 147 dollars per barrel on Friday, amid simmering tensions over key producer Iran and the weak US currency, traders said. London’s Brent North Sea oil for August delivery jumped as high as 147.50 dollars, which beat the previous record of 146.69 dollars set on July 3. New York’s main oil contract, light sweet crude for August delivery, hit another record peak of 147.27 dollars. Runaway oil prices are pushing up inflation, which in turn is causing economic growth to slow. ‘We are trying to avoid sounding too gloomy over the UK economy but next week’s run of indicators makes this aim something of a challenge,’ said Investec Securities economist Philip Shaw. ‘Monday’s producer prices inflation figures are likely to reach new record highs while we are forecasting the following day’s consumer prices index inflation numbers to rise even further above the (government’s) 2.0 per cent (annual) target to 3.6 per cent,’ Shaw said.

Monday World Business News

Wall Street hit by renewed bank, mortgage jitters Agence France-Presse . New York
Wall Street sustained a fresh bruising in the past week as renewed concerns over the financial health of major banks and two large mortgage-financing firms shook investor confidence. The main market indexes have entered ‘bear market’ territory with a drop of more than 20 per cent from their peaks amid a lingering housing market slump, a credit crunch and rocketing world oil prices. Fears about the financial stability of Fannie Mae and Freddie Mac, two companies which help prop up the vast US mortgage market, sparked a heavy selloff of the companies’ shares and dented wider market sentiment. The leading Dow Jones Industrial Average shed 1.7 per cent to 11,100.54 in the week to Friday. The tech-rich Nasdaq lost a much slighter 0.3 per cent for the week to 2,239.08 while the broad-market Standard & Poor’s 500 index shed 1.9 per cent to 1,239.49. ‘This time, credit concerns came in the heavyweight variety, as investors were spooked by talk that mortgage giants Fannie Mae and Freddie Mac may need a bailout by Washington,’ Douglas Porter, an economist at BMO Capital Markets, said in a briefing note. Worries about Fannie and Freddie clouded the market Friday, as Treasury Secretary Henry Paulson said the government wanted to support the two firms ‘in their current form.’ Analysts say Fannie and Freddie help keep the multitrillion-dollar mortgage market lubricated because of their role in buying up mortgage portfolios from big banks, re-packaging them and selling them as securities to investors. Concern about their financial health has rippled through Wall Street and global markets because the two firms own or guarantee over five trillion dollars in loans, or about 40 per cent of the total value of home loans in the United States. Analysts said nagging concerns about the banking sector — Wachovia bank warned investors on Wednesday it would likely post a second quarter loss as large as 2.8 billion dollars — also weighed down Wall Street. Mortgage and credit woes have been plaguing the banking sector for months, despite the efforts of some banks to stem such losses and raise fresh capital from cash-rich foreign investors. Traders continued to keep a close eye on Lehman Brothers, a large investment bank, which has seen its stock pounded in recent weeks as some market-players have questioned its finances. The news flow is set to accelerate in the coming week, as a flurry of companies report their latest quarterly earnings, but investors say sentiment is unlikely to change any time soon. ‘Next week has the potential to be crucial in terms of near-term market direction. In addition to the start of the heavy flow of second quarter earnings reports, there is a relatively heavy calendar of economic releases,’ said Gregory Drahuschak, a market analyst at Janney Montgomery Scott. A flurry of economic reports, including snapshots on inflation, retail sales and home construction, will be released in the coming week. June retail sales are forecast to moderate to a rise of 0.3 per cent after surging a stronger-than-expected 1.0 per cent in May. Economists closely track retail sales for clues on consumer spending, a key driver of economic growth. Surging oil prices, which have been stoked by geopolitical jitters related to Iran’s nuclear program, also weighed down the market in recent days. A New York-traded oil futures contract briefly struck a record high over 147 dollars a barrel Friday. Bonds got a lift from the stock market’s troubles. The yield on the 10-year Treasury bond fell to 3.940 per cent from 3.990 per cent a week earlier and that on the 30-year bond eased to 4.517 per cent from 4.531 per cent. Bond yields and prices move in opposite directions.

Monday World Business News

Airbus chief slams insider ‘show trial’ Reuters/Bdnews24.com . Farnborough
The head of jetmaker Airbus criticised a French probe into suspected insider trading at parent EADS, branding it a ‘show trial.’ Tom Enders is one of 17 current or former executives at the European group cited for further investigation by France’s stock market regulator following sharp movements in the EADS share price in 2006, when it announced delays to the A380 superjumbo. A separate police probe reached existing EADS management for the first time last week when a former Airbus finance chief, who now runs an EADS factory in Germany, Andreas Sperl, was detained for two days and placed under formal investigation. Three former EADS executives had already been placed under investigation, a French legal step which falls short of charges but can prepare the way for trial at a later stage. Enders, the Airbus chief executive, has denied wrongdoing over the exercise of stock options in the months before the A380 delays became public and drove down EADS shares. He has not so far been questioned in the case. He told journalists he was not spending much time thinking about the investigation. ‘We have very good lawyers and we have the full support of (EADS chief executive) Louis Gallois and the board so I am not too concerned. What I can say is that this is a show trial and a piece of bad theatre and that point needs to be made,’ he said. Enders was speaking on Saturday at media briefings before the Farnborough air show. Comments from the event were released for publication on Sunday. Enders is not the first EADS executive to refer to the French investigation as a ‘show trial,’ but is the first to vent his feelings in public.

Monday World Business News

Venture capital market in China grows by 70pc Press Trust of India . Beijing
China’s venture capital market has posted a strong growth of 70 per cent in the second quarter of 2008, with the IT sector accounting for 42.1 per cent of the total enterprises that attracted investment. During the April-June period, 159 enterprises secured venture capital, with a combined capital of $1.2 billion in 143 of the firms which have revealed the amount of investment, official Xinhua news agency reported. Expanding enterprises made up for 85 of the firms, or 53.5 per cent, involving $682 million in venture capital or 56.6 per cent of the total investment. Another 26 were matured enterprises, with $373 million, accounting for 16.4 per cent and 31.0 per cent, respectively, of the total. While IT sector accounted for 42.1 per cent of the total enterprises that obtained venture capital, or 45.9 per cent of the total investment, traditional sectors formed 22 per cent and 19.9 per cent respectively, of the total.

Monday World Business News

Yahoo rejects joint Microsoft, Icahn proposal Reuters/Bdnews24.com . San Francisco
Yahoo Inc on Saturday rejected a proposal to sell its search business to Microsoft Corp and hand over the remainder of the company to activist investor Carl Icahn. Yahoo said in a statement it received the joint proposal from Microsoft and Icahn on Friday evening and was given less than 24 hours to accept. It said Microsoft and Icahn made clear they were unwilling to negotiate the fundamental terms, which include the immediate replacement of Yahoo’s board and removal of top management. The company said the ‘take it or leave it’ deal that was offered would also preclude a potential sale of all of Yahoo ‘for a full and fair price, including a control premium.’ ‘This odd and opportunistic alliance of Microsoft and Carl Icahn has anything but the interests of Yahoo’s stockholders in mind,’ Yahoo Chairman Roy Bostock said in the statement. ‘Clearly, Microsoft, having failed to advance in search, is aligning with the short-term objectives of Icahn to coerce Yahoo into selling its core strategic search assets on terms that are highly advantageous to Microsoft, but disadvantageous to Yahoo stockholders,’ Bostock said. The move comes a few weeks before Yahoo’s annual meeting on August 1, when Icahn is seeking to oust Chief Executive Jerry Yang and replace the nine-member board with his own slate of directors. Icahn owns nearly 5 per cent of Yahoo shares. Microsoft, which has been embroiled in on-again, off-again deal talks with Yahoo for six months, has said it no longer wants to negotiate with Yang’s team, but that it is willing to resume talks if a new management is in place on August 1. Yahoo did not detail the financial returns of the new proposal from Microsoft and Icahn, saying only that it was an improvement over an offer the software maker made in June but still carried less financial value and more risk than Yahoo’s current search advertising deal with Google Inc. Yahoo had signed the deal with Google in June and said it was expected to generate $250 million to $450 million of incremental cash flow for the first 12 months after implementation. The AllthingsD blog quoted sources as saying the new Microsoft offer included a $20 billion advertising search revenue guarantee over 10 years, as well as other ‘small improvements’ on the previous proposal.’ A deal to separate Yahoo’s search and display businesses was an undertaking of great complexity, the company said, and could take up to one year to obtain regulatory approval. It would be much more straightforward and less risky to sell all of Yahoo to Microsoft, and such a deal could be negotiated and executed before August 1, Yahoo said. But it added that Microsoft had again rejected its repeated offer to sell Yahoo for at least $33 per share. Yahoo, whose shares are trading at around $23.50, said Microsoft also refused to negotiate an improved search-only transaction. The company said the revenue guarantees suggested by Microsoft were conditional and subject to reduction, and were ‘well below’ the search revenue that Yahoo was expected to generate on its own and with Google. It also said other components of the proposal that Icahn and Microsoft put forward, such as spinning off Yahoo’s Asian assets, could be undertaken by Yahoo on its own and that its board continued to evaluate these measures. Yahoo said it was ironic that Icahn, who had previously urged the company not to sell its search business to Microsoft, was now supporting a proposal to do exactly that.

Monday World Business News

US exports to Iran increase in Bush years Associated Press . Washington
US exports to Iran grew more than tenfold during president Bush’s years in office even as he accused Iran of nuclear ambitions and helping terrorists. America sent more cigarettes to Iran — at least $158 million worth under Bush — than any other products. Other surprising shipments to Iran during the Bush administration: brassieres, bull semen, cosmetics, fur clothing, sculptures, perfume, musical instruments and possibly even weapons. Top states shipping goods to Iran include California, Florida, Georgia, Louisiana, Michigan, Mississippi, New Jersey, North Carolina, Ohio and Wisconsin, according to an analysis by The Associated Press of seven years of U.S. government trade data. Despite increasingly tough rhetoric toward Iran, which Bush has called part of an ‘axis of evil,’ US trade in a range of goods survives on-again, off-again sanctions originally imposed nearly three decades ago. The rules allow sales of agricultural commodities, medicine and a few other categories of goods. The exemptions are designed to help Iranian families even as the United States pressures Iran’s leaders. ‘Our sanctions are targeted against the regime, not the people,’ said Adam Szubin, director of the Treasury Department’s Office of Foreign Assets Control, which enforces the sanctions. The government tracks exports to Iran using details from shipping records, but in some cases it’s unclear whether anyone pays attention. Sanctions are intended in part to frustrate Iran’s efforts to build its military, but the US government’s own figures show at least $148,000 worth of unspecified weapons and other military gear were exported from the United States to Iran during Bush’s time in office. That includes $106,635 in military rifles and $8,760 in rifle parts and accessories shipped in 2004, the data shows. Also shipped to Iran were at least $13,000 in ‘aircraft launching gear and/or deck arrestors,’ equipment needed to launch jets from aircraft carriers, according to US records. Iran’s navy is not believed to own or operate any carriers. Those numbers may seem small, but military items can sell for pennies on the dollar compared with what the Pentagon paid. Last year, federal agents seized four F-14 fighter jets sold to domestic buyers by an officer at Point Mugu Naval Air Station, Calif, for $2,000 to $4,000 each, with proceeds benefiting a squadron recreation fund. When F-14s were new, they cost roughly $38 million each. Szubin said it was unlikely exports of military gear occurred, but added that the government was looking into it to be certain after the AP raised questions. He said shipping records are subject to human error, such as citing wrong commodity codes or recording ‘Iran’ as the destination rather than ‘Iraq.’ The Treasury Department said Monday it was still checking to see whether it could offer an explanation. ‘That’s something that would obviously concern us greatly and concern the whole administration,’ Szubin said in an interview with the AP. ‘And so when you presented us with the question in the last day we have called over to our colleagues in other government agencies and you can be assured they’re looking very carefully into it.’

Monday World Business News

CORPORATE BRIEFRP Construction to use ScanCement Business Desk
The Heidelbergcement Bangladesh Ltd and the RP Construction Pvt Ltd have signed a corporate deal in the Dhaka city recently. Ramakanta Bhattacharjee, director, marketing, sales and IT of HeidelbergCement Bangladeh, and Farid Ahmed Bhuiyan, managing director of the RP Construction, and Nihar Kanti Bhattacharjee, project director of RP Construction, inked the deal, said press release. Quazi Shafayet Hossain, marketing and sales manager of Hejdelbergcement Bangladesh, MD Siddiqulla, chairman of RP Construction, and senior executives of both the companies were present at the signing ceremony. According to the deal, the construction company will use only ScanCement in their projects.

Monday World Business News

Gloom descends on UK property sector after years of boom Agence Francxe-Presse . London
Britain’s once-booming housing market is slumping and faces the prospect of an even sharper downturn owing to the global credit crunch, according to economists. The housing market unravelled further last week, with house prices tumbling at their fastest annual rate for 15 years and homebuilders announcing that more than 4,000 jobs had been axed in the industry since the start of 2008. The stubborn credit crunch, which began almost one year ago has slammed the brakes on property markets around the Western world, not least in the United States, but also in France, Ireland and Spain. ‘The latest data on the British housing market continue to be very worrying and there appears to be no let up in the current downward spiral,’ said Global Insight economist Howard Archer. Many cash-strapped Britons, already feeling the pinch from high fuel and food prices, find it increasingly difficult to get on the housing ladder as high-street banks ramp up home loan interest rates and demand larger deposits for first-time buyers. As a result, housing demand has plunged in recent months and British home builders are slashing thousands of jobs as they struggle to find enough people to buy their new homes. House prices in Britain slumped 6.1 per cent in June compared with the same month last year, the largest decline since March 1993, according to home loans provider Halifax. ‘Clearly, the downward pressure on house prices coming from very low activity, stretched buyer affordability and tight lending continues to bite very hard,’ Archer said. ‘Elevated affordability pressures on potential house buyers stem from high house prices and modest disposable income growth, while very tight credit conditions are leading to markedly fewer and more expensive mortgages being available,’ he added. Prices dropped by 2.0 per cent in June from May, added Halifax, part of British banking group HBOS, in its latest monthly survey published last week. The average cost of a property in Britain stood at 180,344 pounds ($356,387) in June, Halifax said. However, despite the current downturn, average house prices were still 150 per cent higher than 10 years ago, when they stood at 72,096 pounds. Britain’s biggest house builders — Barratt, Bovis, Redrow, Persimmon and Taylor Wimpey — have said they are together cutting around 4,400 jobs. All five companies blamed the housing slump. ‘The picture across the housebuilding sector is bleak,’ said Keith Bowman, equity analyst at Hargreaves Lansdown stockbrokers. Investors were concerned that ‘the fight has now become one of survival,’ he added. The credit crunch has also infected the British economy, with weak manufacturing and services sector data pointing towards a possible recession, according to economists. Britain experienced 0.3-per cent economic growth in the first three months of 2008, which was the lowest quarterly expansion for three years. ‘The housing market is in the initial stages of an extremely sharp correction,’ said Capital Economics analyst Seema Shah. ‘Slowing economic activity combined with continued problems in the mortgage markets, suggest that further sharp falls lie in the pipeline.’ Confidence in the property market has also been sapped by the near-collapse and nationalisation of mortgage lender Northern Rock, which ran into severe funding difficulties last year and had to be bailed out. Other European nations’ property markets are also suffering as a result of the global credit squeeze that emerged from the wreckage of the collapsed US subprime or high-risk mortgage sector.

Monday World Business News

Eurozone economy losing momentum Xinhua . Brussels
The eurozone economy is losing momentum after two years of strong recovery, with clear signs of marked slowdown mainly due to long-lasting financial turmoil and soaring oil prices. In its spring economic forecasts released in April, the European Commission described the eurozone economic outlook as being ‘extremely uncertain,’ but a sharp slowdown was almost certain despite an out-of-expectation performance at the beginning of this year. The latest figures from Eurostat, the European Union statistics office, showed the economy of the 15 countries sharing the euro grew by 0.7 per cent in the first quarter of 2008 over the previous three months, up from 0.4 per cent in the last quarter of 2007. Although the eurozone economy managed to remain resilient in face of financial turmoil and record high oil prices, Luxembourg Prime Minister Jean-Claude Juncker, who also chairs the euro group, warned earlier this week that the economic growth in the euro zone would slow down markedly in the second quarter. ‘Signs of economic slowdown are multiplying and the second quarter will be much less buoyant than the first was,’ he said, ‘We are seeing this in economic confidence indicators.’ According to the European Commission, the eurozone economy was expected to grow by 1.7 per cent this year, down from a remarkable 2.6 per cent in 2007, while next year it would further decelerate to merely 1.5 per cent, well below its potential. Nearly one year after the breakout of the U.S. sub-prime mortgage market crisis last summer, the eurozone financial markets remained in turbulence as banks were reluctant to lend for fear of exposure to losses. The so-called credit squeeze undermined investors’ confidence. As a result, investment, a major driver for eurozone economic growth, is cooling. It was forecast to grow by less than half rate of last year. However, EU leaders noted at their June summit that international financial markets were showing signs of stabilization, adding the overall conditions remained fragile. Compared to the financial turmoil, the rising inflation, pushed up by record high oil and food prices, became an increasing risk to the eurozone economy. Between September 2006 and February 2008, wheat prices in Europe increased by 96 per cent and prices for dairy products by 30per cent, while world oil prices have risen five-fold in six years, refreshing records recently. Mainly due to high oil and food prices, annual inflation in the euro zone rose to 4 per cent in June, the highest level since the European Central Bank 12 years ago started collecting inflation data for the countries that began to use the euro in 1999, according to preliminary figures from Eurostat. It stood exactly twice as high as the 2-per cent ceiling preferred by the ECB to maintain price stability, dampening consumption and threatening economic growth. Figures showed producers’ and consumers’ confidence in the eurozone has fallen below its long-term average. Household expenditure, another pillar of the eurozone economic growth, was expected to grow by 1.4 per cent, slowing down from 1.5per cent last year. The deceleration was partly offset by improving situation in the labor markets. As of April this year, the eurozone unemployment rate has dropped to 7.1 per cent, the lowest since 1993. However, rising inflation and economic slowdown have put the Frankfurt-based ECB into a dilemma as to whether to raise its benchmark interest rate for the eurozone to maintain price stability since any further increase might be detrimental to the economic growth. In face of stubborn price pressure, the ECB raised its benchmark interest rate by a quarter of a per centage point earlier this month to 4.25 per cent, after keeping it unchanged for a year. From the outside, because of the US economic slowdown and the appreciation of the euro and other significant adverse factors, the euro zone is facing an increasingly severe external trade environment. According to the commission, the eurozone export growth this year was expected to drop from last year’s 6.1 per cent to 4.4 per cent, despite support from China and other emerging markets. Eurostat data showed in the first quarter of this year, the eurozone exports to China maintained a double-digit growth.

Monday World Business News

Sino agri trade deficit ups Press Trust of India . Beijing
China's trade deficit in agricultural products shot up 14.3 times to $7.57 billion in the first five months of 2008 as compared to a year earlier, the ministry of agriculture said. Foreign trade in agricultural products was valued at $39.93 billion, a 36.1 per cent rise year on year, including $16.18 billion in export value, up 12.2 per cent, and $23.75 billion in import value, a 59.2 per cent jump. China's net cereal exports dropped drastically in the five-month period and trade deficit in animal by-products increased, the ministry, quoted by official Xinhua news agency said. During the January-May period, China exported 1.19 million tons of cereals, down 76.6 per cent from a year-earlier, but imported 911,000 tons, a figure up by 14.2 per cent. The net exports stood at 276,000 tons, down 93.5 per cent. The Ministry said $1.65 billion worth of animal by-products were sold abroad, up by 10 per cent, while $3.28 billion worth were imported, up 35.9 per cent. The trade deficit was $1.63 billion, which was up 78.6 per cent. China imported 3.58 million tons of edible vegetable oil, up 11.2 per cent. The total included 1.13 million tons of soyabean oil, up 7.6 per cent, 98,000 tons of rapeseed oil, down 12.8 per cent, and 2.33 million tons of palm oil, up 17.1 per cent, the report said.

Monday World Business News

SPL holds field managers' conference Business desk
The Supreme Pharmaceuticals Limited held the field managers' conference in the Dhaka city recently. Muhammad Shams Ul Haque, chairman of Shams Group and chief adviser of Supreme Pharmaceuticals, inaugurated conference, said a press release. The conference was presided over by AKM Shahjahan, managing director of the SPL. Abdul Hal Kamal, general manager, and senior executives of the company were present.

Monday World Business News

South African firms face hostile business climate in Zimbabwe Agence Francxe-Presse . Johannesburg
South African firms are resisting the urge to pull out of Zimbabwe despite an increasingly hostile business climate in the hope they will be in prime position to benefit from a future upturn. Once a relatively stable market, Zimbabwe has become a nightmare for foreign businesses in recent years with the annual inflation rate now well into eight figures and the government trying to impose prices for goods and services. Several Zimbabwe-based South African bosses were hauled before the courts last year for overcharging while they are also having absorbed the impact of a new law forcing them to cede a controlling stake to native Zimbabweans. But analysts say the dozens of companies -- ranging from mining giants and banks to tourist operators -- which are still clinging on are confident that things are bound to get better at some stage. 'I believe that the decision by companies to stay in Zimbabwe is more of a long-term business strategy than a humanitarian gesture. They are simply positioning themselves for an anticipated economic recovery,' said Johan Rossouw, chief economist at Cape Town-based Vector Securities and Derivatives. South Africa has long been Zimbabwe's biggest trading partner and, according to the department of trade and industry in Pretoria, around 20 major companies and scores of smaller enterprises are still operating there. Among the biggest still toughing it out is Standard Bank which trades under the name Stanbic in branches throughout Zimbabwe. 'Doing business is very difficult but we continue monitoring the situation in Zimbabwe and our business operations,' Clive Tasker, chief executive of Standard Bank Africa, told AFP. 'We have no intention of pulling out.' South Africa's largest supermarket operator, 'Pick n Pay,' is also keeping its foot in the door through its 25 per cent stake in Zimbabwe's TM chain even though it has not received any dividends in the last four years. 'TM continues to trade under exceptionally difficult economic conditions with procurement being their biggest challenge,' said a statement from Pick n Pay. 'We continue to support our colleagues and hope for political and economic stability in the near future.' As well as the high street giants, South African mining firms are still clinging on in Zimbabwe despite the ever growing problem of finding parts and coping with constant power blackouts. The Johannesburg-based Impala Platinum, the biggest foreign investor in Zimbabwe through its subsiduary Zimplats, said it was working out how to circumvent some of the problems it had experienced and was hoping to increase production fourfold by 2010, according to a recent report in the Sunday Times. 'We are in talks with neighbouring Mozambique to import electricity for our mining operations in Zimbabwe,' a statement said. Meanwhile, tour operators are still arranging holidays for thousands of foreigners to visit the country's premier attraction, the Victoria Falls. Tommy Edmund, chief executive of the Johannesburg-based Tourvest, said the Falls benefitted from its location next to the Zambian border. 'All supplies for the hotel are transported from Zambia, including food and fuel,' he told AFP. 'That makes us least affected by the meltdown. We have always been using the US dollar currency, so we did not feel the impact of the Zim dollar collapse.' While few are making much money in the current climate, Rossouw of Vector Securities and Derivatives says many businesses are prepared to absorb short-term losses and avoid leaving the door open for their rivals. 'By pulling out now, companies are likely to find it hard to establish themselves all over again once the situation stabilises,' he said. 'They also fear opening up opportunities for the competition.'

Monday World Business News

Climate change comes second after growth for India Press Trust of India . New Delhi
For most of India Inc, tackling the adverse impact of climate change is second preference as they aim for growth and expansion, claims a study, which also warns that such an approach will cost the firms dearly in future. According to the survey by the business chamber Assocham, of the 180 top firms and 240 employees interviewed, 'at least 79 per cent still first prefer to take their expansion and diversification plans to logical conclusion while the issue of climate change and global warming is second best preference for them.' Nearly 21 per cent of domestic firms were taking mitigating steps to curb greenhouse emissions, an encouraging fact considering that two years ago, the ratio of Indian Inc fighting global warming was just below 10 per cent, claims the survey. Suggesting that a lot needs to be done, the survey points out that the Indian Inc is still way behind the 55-60 per cent global ratio. The 21 per cent of green corporates have partnered with developed world to respond to climate change needs, the survey said. The respondents favoured public private partnership model as being done in developed countries to protect the environment from damaging effects of global warming 'but the partnership offer between Indian corporates and the government is yet to pick up required pace.' PTI

Monday World Business News

US administration puts off greenhouse gas regulation Agence Francxe-Presse . Washington
Environmentalists are seething after the administration of US president George W Bush delayed any decision on regulating greenhouse gases, likely leaving any substantive action to his successor. The Environmental Protection Agency issued a 588-page report Friday that cites ‘the complexity and magnitude’ of the issue and calls for 120 days of public comment. The decision follows a Supreme Court ruling ordering the EPA last year to devise ways to regulate greenhouse gas emissions from motor vehicles under the Clean Air Act. ‘The Bush administration’s refusal to respond to the Supreme Court and do something about global warming is not just illegal, it is grossly immoral,’ said Danielle Fugere of Friends of the Earth, an environmental group. ‘President Bush’s inaction in the face of this crisis is one of the greatest failures of leadership in presidential history,’ she said in a statement. The EPA said there were doubts whether ‘greenhouse gases could be effectively controlled under the Clean Air Act.’ EPA Administrator Stephen Johnson wrote that regulating greenhouse gases under any portion of the act ‘could result in an unprecedented expansion of EPA authority that would have a profound effect on virtually every sector of the economy and touch every household in the land.’ David Bookbinder, the climate counsel for the Sierra Club environmental group, said the EPA’s decision underscores Johnson’s ‘utter lack of credibility.’ ‘The American public, Congress, world leaders, and even career government officials are counting down the days until this administration leaves town and a new president undoes the damage done by President Bush and makes up for nearly a decade of lost time — time we didn’t have to waste in the first place,’ Bookbinder said in a statement. The EPA decision came after Bush agreed during the Group of Eight industrialized nations meeting in Japan this week to cut carbon emissions blamed for global warming by at least half by 2050. It was the strongest language yet signed by the US leader. The Bush administration has fiercely opposed any imposition of binding emissions limits on the nation’s industry and has refused to ratify the Kyoto Protocol on reducing greenhouse gas blamed for global warming. But the Supreme Court ruled in April 2007 that the EPA must consider greenhouse gases as pollutants and deal with them. The ruling came in response to legal action undertaken by Massachusetts and a dozen other states and environmental groups that went to court to determine whether the agency had the authority to regulate greenhouse gases such as carbon dioxide emissions. Environmentalists have alleged that since Bush came to office in 2001 his administration has ignored and tried to hide looming evidence of global warming and the key role of human activity in climate change.

Monday World Business News

Australia eyes 1,000 polluters for carbon trading Reuters . Sydney
About 1,000 of Australia’s biggest polluting companies will need to buy permits under an emissions trading scheme expected to be introduced in 2010 to try to reduce greenhouse gas emissions, the minister for climate change, Penny Wong said on Sunday. Australia, highly dependent on coal for making electricity and generating hundreds of billions of dollars in annual export revenue, is scheduled to release a paper on Wednesday spelling out guidelines for how it intends to implement emissions trading. ‘The government puts a limit on how much carbon pollution is permitted, we issue permits up to that limit for companies, and it is each of those permits which creates a price, therefore an incentive to reduce pollution,’ Wong said in an Australian Broadcasting Corp TV interview. ‘We anticipate approximately ... 1000 Australian companies will be required to take permits under this scheme. Obviously, we will focus primarily on the large polluters, Wong said. Australia is home to some of the world’s biggest mining companies and the world’s single largest coal terminal. Wong said the government of Prime Minister Kevin Rudd was committed to a 2010 start-up date for trading. ‘We are very aware ... that the longer you delay the higher the costs are likely to be.’ Under the Australian model outlined earlier this month with much fanfare by the government, the scheme would cover more sectors of the economy than the European Union’s emissions trading system. The European Union scheme, which covers about half of the European Union’s emissions, has been criticised in Australia for overallocating emission permits, which experts said should be auctioned instead. Australia relies on coal to generate about 77 per cent of the country’s electricity. Australia has stressed that its plan should not become a government revenue-raiser, suggesting 50 per cent of the likely A$15-20 billion ($14-19b) raised from permit auctions should be returned to households and 30 per cent to hard-hit businesses.

Monday World Business News

Rising FDI in China reflects inflow of hot money Xinhua . Beijing
Foreign direct investment in China rose 45.5 per cent in the first half of the year, deepening worries that the inflow of 'hot money' could lead to higher inflation. The ministry of commerce said on Friday that foreign investors spent 52 billion U.S. dollars in China between January and June. In the same period last year, FDI increased only 12 per cent. The ministry did not provide figures for June, but based on data published for the first five months, the June figure is estimated at 9.6 billion dollars, up from 6.6 billion dollars a year ago. Gene Ma, macroeconomic analyst at Beijing-based economic research firm China Economic Business Monitor, said: 'The inflow increase is fast, but we don't know where the money has gone.' Despite rising FDI, foreign investment in fixed assets and the real estate sector both fell over the first five months of the year, and no major merger and acquisition deals were signed. Therefore, the destination of a large part of the money inflow cannot be explained, he said. Analysts have said the rising yuan against the U.S. dollar and high interest rates in China have attracted the hot money. The central bank said in its first-quarter monetary policy report that given the interest rate gap between China and the US, and the uncertain global economic situation, the influx of speculative capital may continue to increase in the short term, compromising the country's tightening monetary policy. Shi Lei, an analyst at Bank of China, said FDI has been one of the major channels for hot money influx since last year. 'Speculators can always find a way to circumvent government rules,' Shi was quoted by Bloomberg as saying. The government has been working to stop the inflow of hot money. The State Administration of Foreign Exchange issued a new rule last week, which asks traders to report advance payments for exports and deferred payments for imports, because both of these channels can be used to bring in 'hot money.'

Monday World Business News

Thai economy dragged down amid turmoil Agence Francxe-Presse . Bangkok
Thailand's renewed political turmoil, with three top officials forced from office last week, is hurting an economy already hit by soaring inflation and weak investment, analysts say. Prime minister Samak Sundaravej's five-month-old government suffered a string of bruising court losses last week over vote-buying, share scandals, and a controversial temple deal with Cambodia. The courts removed the health minister and the deputy leader of Samak's People Power Party from office, while the foreign minister was pressured to resign -- all within 48 hours. 'The instability of the current government caused by the ministers has devastated confidence in the Thai economy among investors and consumers,' said Aat Pisanwanich of the University of the Thai Chamber of Commerce. Businesses are now reluctant to invest in the country, while consumers have cut back on spending, he said. 'This is a pretty bad atmosphere for the economy, and no one knows what the government is going to do,' Aat added. Samak is widely expected to announce a major cabinet reshuffle to rebuild confidence in his government, but that means progress on major infrastructure projects and new economic policies are on hold. 'The government now lacks stability. So despite its policies to boost the economy, implementing the policy with concrete measures and actions is being put on hold,' said Pongrat Ratanatavanananda, vice president at Bua Luang Securities. Samak's election victory in December had raised hopes for an end to Thailand's economic troubles, after more than a year of haphazard economic management by the junta that ruled the country following a coup in 2006. But now the stock market has dropped by around 15 per cent since anti-government street protests broke out seven weeks ago. Inflation in June hit a new 10-year high of 8.9 per cent, and experts fear economic growth could be slower than the 6 per cent predicted by the government. High global oil prices and rising inflation have pressured countries around the world, but Pongrat said political turmoil was compounding Thailand's efforts to deal with a shaky world economy. 'Brokers say the government seems to have two alternatives -- either reshuffle the cabinet or dissolve parliament' to hold new elections, Pongrat said. 'Whichever choice it makes, the Thai economy is going to be hurt and the ramifications will be long-lasting.' Kavee Chukitkasem, assistant managing director at Kasikorn Securities, said the political uncertainty could hamper Thailand's ability to weather global economic problems. 'The current Thai politics just makes the Thai economy even more dismal, when it's already suffering from rising inflation and volatile global oil prices,' Kavee said. He said the political crisis would eventually resolve itself, and that a greater cause for concern was that exports could slow later in the year. Exports account for 60 per cent of Thailand's economy. He said that some Asian investors, particularly from Japan and Singapore, don't appear too worried by the political crisis. 'Investors have just delayed their decisions on investments. For example, Japanese investors consider the uncertainty in Thai politics is just part of Thai culture.'

Monday World Business News

AB Bank launches 3 Islamic products Staff Correspondent
AB Bank has launched three Islamic banking products to cater the need of its customers. The products are especially designed for the customers who prefer Islamic banking and those will be popular among the clients, said Kaiser A Chowdhury, president and managing director of the AB Bank, at the products launching ceremony held at the bank’s Islamic branch at Kakrail in Dhaka on Sunday. The products are Mudaraba Millionaire Scheme, Mudaraba Quarterly Profit Scheme and Mudaraba Hajj Deposit Scheme. The AB Bank Islamic banking branch at Kakrail also went to online banking system Sunday. Sajedur Seraj, vice-chairman of the AB Bank, inaugurated the online banking facilities. With introduction of the online banking system at the AB Bank Islamic branch, it is now integrated into the bank’s online services as the branch will have connectivity with seven of its general branches across the country. Directors and senior officials of the AB Bank were also present on the occasion.

Monday World Business News

Mahbub Jamil urges healthy business practice Bangladesh Sangbad Sangstha . Dhaka
Special assistant to the chief adviser for ministry of industries Mahbub Jamil on Sunday urged the businessmen to practice healthy business ethics with sincerity to ensure rapid economic growth and make the country self-reliant ‘No changes in the society would be possible, if the country’s business endeavours are not enriched with all-out trade amenities. The government has been attaching top priority to the industries sector side by side providing with maximum supports to the sector,’ he said. Mahbub Jamil said this while speaking as the chief guest at a seminar on ‘Impacts of Micro-nutrient in improving Nutrition and Health Status of School Children’ organised by Smithkline Beecham Bangladesh at a local hotel. Chairman of Mutual Group Mohammad Azimuddin gave the speech of welcome while Professor Meherbon Singh, head of the department of paediatrics and neonatology of All India Institute of Medical Sciences, presented the keynote paper on nutrition status in Bangladesh and India. Country director of Smithkline Beecham said Debashish Mukharjee also spoke on the occasion. Osman Jamil said the country’s per capita income stood at $499 from $300 in 2003, while the GDP growth has been projected at 6.5 per cent this year. In view of the macro-economic performance in the last five years, he said, the government has taken various steps to promote trade and commerce by bringing dynamism in the sector. Debashish Mukharjee said Horlicks, a century old beverage has come up with a new logo dubbed ‘Now Proven-taller, Stronger and Sharper’. The beverage with extensive 360-degree communication plan would effectively help ensure nutrition level of school students, he asserted. Quoting UNICEF Report 2007, Meherbon Singh said, the nutrition status of China is relatively higher than Bangladesh and India and stressed the need for providing the school children with adequate nutrition to ensure their better future.

Monday World Business News

Cambodian RMG workers worried Agence Francxe-Presse . Phnom Penh
Sath Vanny sits anxiously at the door to her tiny one-room hut in the factory district of Cambodia’s capital. She left her hometown in the southern province of Takeo seven years ago to work at a women’s shirt factory, sending most of her earnings back to help the family farm. But a slowdown in orders has the 25-year-old worried about her job. Overtime work has fallen off as Cambodia’s textile sector, the country’s biggest industrial employer, struggles against stiffer global competition and slowing demand. More than 10 Chinese-owned factories have moved to cheaper markets, leaving hundreds of thousands of garment workers — mostly young women like Vanny who support their impoverished families — facing destitution. ‘I was told that we didn’t have as many orders as we used to, but with the basic wage I don’t have money to send to my parents,’ says Vanny, who now earns less than 60 dollars per month. ‘I can’t imagine living without a factory job. I am so worried about my family,’ she adds, wiping away tears. The garment industry earns 80 per cent of Cambodia’s foreign exchange earnings and employs an estimated 350,000 people in more than 300 factories. The industry thrived after a unique labour-friendly deal with the United States in the 1990s. Under the deal, Cambodia passed new labour laws, encouraged labour unions and allowed the International Labour Organisation to inspect factories and publish its findings. In turn, the United States cut tariffs on Cambodian garment exports, buying 70 per cent of all of the country’s textiles. Cambodia maintained its higher working conditions after the deal expired in 2005, and garment-making has made the economy one of the fastest growing in the region. But it does not look built to last. The industry grew only 8.0 per cent last year after suffering a dismal fourth quarter that saw orders plummet by nearly half, according to the World Bank. It previously enjoyed growth of up to 20 per cent. Apparel exports have declined since October, mainly due to the US economic slowdown, according to Cambodia’s commerce ministry. Exports to the United States slipped 1.44 per cent in the first quarter, compared with the same period last year, to some 500 million dollars, it added. Meanwhile factory owners are looking abroad for greater productivity and lower costs, says Cambodia’s Free Trade Union. Sok Vannak, who has been working at a factory for almost 10 years, says her Chinese bosses often threaten to move the factory to Vietnam, where costs are cheaper.

Monday World Business News

Mirza Aziz sees economy doing well Blasts affluent society for casting dark cloud United News of Bangladesh . Dhaka
The finance adviser, Mirza AB Azizul Islam, on Sunday came down heavily on the affluent society in the capital for ‘casting dark clouds over the economy’ although it ‘has been doing reasonably well compared to the economies in neighbouring countries.’ ‘Those of us living in the capital city always see dark clouds all over, there’s no silver lining. We say the economy tumbled,’ he told a meeting of foreign investors, operating in Bangladesh, at Hotel Sheraton. ‘The heat of inflation is definitely a dark cloud, which we’ve not been able to avoid. Though we’re not engulfed, the poor people were really hit,’ the finance adviser said. He, however, said Bangladesh was not doing so bad as compared to food surplus countries like India and Vietnam who were respectively suffering from 11.9 and 25 per cent inflation. The adviser said the slightly lower GDP growth than previous fiscal year’s 6.43 per cent would be achieved, although the economy was confronted with so many challenges both from internal (two successive floods followed by devastating cyclone Sidr) and external (food, fuel and fertiliser price) shocks. Compared with regional economic growth, he said, the economy ‘certainly is not dismal, even we can say satisfactory.’ He added that the growth of Chinese and Indian economy would at least be one per cent lower than their earlier estimates. Mirza Aziz said one would see a little decline in investment as the just out fiscal year registered investment at 24.2 per cent of the GDP as compared to 24.46 per cent of the previous fiscal year. ‘This is by no means alarming.’ About the criticism that the government has mortgaged the country’s future to external debt, he argued that the debt service as proportionate to exports rather declined to 5.1 per cent in 2007-08 from 5.5 per cent in the previous fiscal year. The finance adviser dismissed the allegation that the banking system was suffering from the liquidity crisis to dry up private sector lending. He said he had carried out an investigation in a bank that claimed liquidity problem and found an additional fund of Tk 166 crore. He added that agriculture credit increased by 61 per cent and industrial credit rose by 66 per cent (July-March) during the last fiscal year while the industrialists did not keep the borrowed money under mattress. ‘The overall private sector credit grew 19.5 per cent during July-April period of the last fiscal year,’ he said, adding that the credit growth was by no means lower. Replying to a question, the finance adviser said the bank deposit rate increased due to rise in inflation. ‘Banks are offering a minimum positive rate of return to the savers… even it will not entail a significant rise in lending rate.’ The Foreign Investors’ Chamber of Commerce and Industry president, Waliur Rahman Bhuiyan, welcomed the guests at their monthly luncheon meeting.

Monday World Business News

Dhaka stocks open week upbeat Staff Correspondent
Dhaka stocks gained on Sunday, opening day of the week, mainly due to significant rise in share prices of a number of blue chips securities, said market operators. The general index of the Dhaka Stock Exchange gained 11.22 points or 0.38 per cent to close at 2993.21 while its blue chips index, DSE20, advanced by 45.43 points or 1.75 per cent to finish at 2638.99. A DSE stock broker said blue chips pulled up the market. Market witnessed buying of institutional investors who purchased shares to avail lower prices of the securities after downtrend in recent weeks, he said. Market lost steams in last four weeks as investors remained unnerved due to the Securities and Exchange Commission decision barring closed-end mutual funds from increasing their sizes through issuing bonus or right shares and the DSE’s market cooling measures. Blue chip major Square Pharmaceuticals gained 4.29 per cent to close at Tk 5424.75 on Sunday. Of the total 232 issues traded at the DSE, 124 advanced, 99 declined and nine remained unchanged. Turnover at the DSE, however, decreased to Tk 313.20 crore from the Thursday’s Tk 327.38 crore. Beximco Pharmaceuticals topped the turnover leaders with total transaction of Tk 25.27 crore. Square Pharmaceuticals, Apex Adelchi Footwear, ACI, Keya Cosmetics, LankaBangla Finance, Beximco, BOC, Square Textiles and Lafarge Surma Cement, were also among the top ten turnover leaders. Chittagong Stock Exchange selective categories index gained 91.85 points or 1.58 per cent to close at 8196.23 while its blue chips index, CSE30, advanced by 109.52 points or 1.35 per cent to close at 8196.23. Of the total 147 issues traded at the CSE, 79 posted gains, 66 dropped and two remained unchanged. Turnover at the CSE went down to Tk 40.98 crore from Tk 41.93 crore.

Sunday, July 13, 2008

Sunday Bangladesh News

Rights group calls for withdrawal of emergency Staff Correspondent
The human rights body Odhikar on Saturday urged the interim government to hold the parliamentary elections before the local polls and observed that the government and Election Commission’s move to hold the local polls including the August-4 polls beforehand, ignoring opposi-tion of all major parties, might jeopardise the democratic process. Odhikar also called for lifting the state of emergency immediately for the restoration of the democratic rights of the people that remain suspended for the last 18 months, observing that the continuation of emergency was illegal under the Constitution and international law. ‘During a year and a half after proclamation of the Emergency, we have not noticed any exigencies that might have necessitated ‘the Emergency Power Rules’ in the country, which is only necessary when a nation’s existence is at stake because of internal or international disturbances ‘threatening the existence of the nation’,’ the right watchdog said, adding that there could not be any justification for the continuation of the emergency anymore. The rights body made this call while reviewing one and a half year rule under the state of emergency. In its report, Odhikar also came up with recommendations for resumption of trade union activities, scrapping of the proposed National Security Council and repealing of the anti-terrorism ordinance. Instead it urged the government to initiate independent judicial inquiries into extrajudicial killings and deal with crime suspects following the due process. Criticising the interim government for abusing the constitution, Odhikar said that the current government had taken the advantage of the perceived ambiguity of the Constitution in Article 58B on the length of the caretaker administration. It has also ignored the precedents set by two previous caretaker governments, of holding parliamentary elections within 90 days. ‘The present caretaker Government is yet to hold the parliamentary elections, even after a year and half - a job which was done in three months by its predecessors,’ it said. ‘Odhikar believes that by not following the precedents the present caretaker government has set a bad example about the tenure of such governments. The question now is what would be the length of the next caretaker government? Who should be held accountable for damaging the Constitution?’, the rights body observed. It criticised the military-backed government for putting the participatory democracy in jeopardy by fixing the schedule for the local polls ahead of the parliamentary elections ignoring the opinions of the major political parties. Odhikar felt that the decision of keeping aloof from the polls by the Bangladesh Nationalist Party and its four-party alliance that held most of the seats in the last parliament had put a question mark on the credibility of the elections. The rights body said, ‘The military-backed government must create a congenial environment for all political parties to participate in the polls. To achieve this objective the government must lift the State of Emergency as a gesture of political goodwill.’ Odhikar said, ‘A National Security Council, if established, would not only institutionalise the military’s role in governance and dwarf the development of democracy but also constitute a positive threat to human rights and freedom of the people. Formalising the military’s role in the governance through the security council would politicise the military and give them chances to get involved in internal security matters including law and order issues on some flimsy pretext’. In its evaluation Odhikar is critical about the election commission for missing deadlines. Odhikar observes that the election commission’s suspected complicity in the military-controlled interim government’s political agenda is not only eroding its credibility among the people but also having a negative impact on its primary task of holding participatory and credible general elections. The rights body felt, ‘If the commission wants to hold acceptable general elections, it will have to dispel such perceptions about it by distancing itself from the government’s political agenda and focusing all its energy on holding parliamentary elections at the earliest’.
1,373 cases pending for investigation by ACC Moneruzzaman Mission
A total of 1,373 cases, mostly filed against high-profile graft suspects for amassing illegal wealth and hiding information about their assets, are now pending with the Anti-Corruption Commission for investigation and inquiry. Of the cases, 1,259 were filed by the present commission between February 7, 2007 and June 30 this year, and 114 by the previous commission between November 21, 2004 and February 6, 2007, said the ACC’s director-general (admin) Hanif Iqbal. The ACC is also inquiring into the cases against former premiers Sheikh Hasina and Khaleda Zia. Of the 1,373, cases, 673 are pending with Dhaka Division, 151 with Chittagong Division, 192 with Bogra, 89 with Khulna, 107 with Barisal and 47 with Sylhet. A total of 771 cases are pending with the ACC for investigation and 602 for inquiry. As of June 30, the ACC lodged 1,022 First Information Reports with different police stations across the country against graft suspects after completion of inquiry against them. Charge-sheets were submitted in 170 of those cases including 75 cases of which trials have already been completed with the conviction of 35 corruption suspects listed by the ACC, and 95 co-accused who were convicted for abetting the suspects in committing the offences. Of 170 cases, proceedings of at least 20 graft cases have been stalled by the High Court. The reconstituted ACC has so far submitted final reports in 71 graft cases, remanding none of the accused for trial reportedly because sufficient evidence has not been found against them. Of these cases, 28 are for misappropriation of corrugated iron sheets meant for relief, 21 for misappropriation of government money and other relief materials, 13 for bribery and 9 for other charges. Of the total of 29 special courts, 10 have been set up in the capital and began functioning on May 6, 2007 to try high-profile graft suspects listed by the present government. Some 95 cases are now under trial. Of them, 76 are with the special courts in Dhaka, 12 with the Metropolitan Sessions Judge’s Court and 6 with the special courts outside Dhaka. One case is awaiting transfer from the Chief Metropolitan Magistrate’s Court to the Metropolitan Sessions Judge’s Court. Among the lawyers appointed by the ACC to deal with the cases in Dhaka Metropolitan area, 10 are in the Legal Advisory Council, 5 are senior prosecutors, 15 are dealing with cases in the Supreme Court and 26 are public prosecutors. The number of panelled lawyers to deal with the cases as public prosecutors outside Dhaka is 198.
Container scanner for Ctg port in 6 months Special Correspondent
The authorities have approved the purchase of a container scanner for Chittagong Port to eliminate the chances of illegal arms and narcotics smuggling. Officials said the council of advisers committee on purchase at a meeting on Saturday approved the purchase of the scanner amid strong demand from major importing countries, including the United States. The lowest bidder of the re-tender is Swiss company SGS, which got the approval from the special committee to supply the scanner for Tk 43.4 crore and an additional payment of Tk 59.88 crore for providing services for six years after its installation, the finance and planning adviser, AB Mirza Azizul Islam, told reporters after the meeting. ‘The approved quotation is Tk 1.6 crore less than the price of the lowest bidder Cotecna offered in the original tender, which was scrapped by the government. The contract of Cotecna as a pre-shipment inspection company had been under process of cancellation due to various malpractices,’ Aziz told reporters. The contract of Cotecna was cancelled on March 19 by the government for a number of allegations of import valuation forgery. Sources in the finance ministry said the United States under its container security initiative programme asked all the countries concerned to install scanners to check movement of illegal arms and contraband narcotics. The scanner will be installed at the port within six months to equip the Chittagong port with increased capacity for export-import activities to world standards, they said. The purchase committee also approved the procurement of one lakh tonnes of wheat for $419 a tonne, 55,000 tonnes of murate of potash fertiliser for Tk 217.29 crore, 50,000 tonnes of triple super phosphate fertiliser for Tk 449.66 crore and the construction of internal roads in the Purbachal residential area at a cost of Tk 5.79 crore. In reply to a question, Aziz said he saw no uncertainty in the procurement of food grains from thee world market. ‘We are neither scared nor see any threat in procuring required food grains from the world market,’ Aziz told New Age.
Lanka tightens use of mobile phones to fight terrorism Agence France-Presse . Colombo
Sri Lanka Saturday tightened mobile phone regulations and forced service providers to maintain full details of phone users as part of anti-terrorism moves. Phone operators were told to check the identity of subscribers before signing them up, Telecommunications Regulatory Commission chief Priyantha Kariyapperuma said. New and current subscribers also need to keep a certified copy of the letter issued by the operator for inspection by police and military, in order to prove the ownership of the phone connection, he said. ‘The rules were brought in on the request of the defence ministry, because mobile phones are misused for terrorist activities. The government is finding it difficult to trace the real owners,’ he said. Separatist Tamil Tiger rebels, who are fighting for a separate homeland for minority Tamils from the majority Sinhalese community, are known to use several mobile phone connections under different names to evade detection. Mobile telephones have also been used to remotely detonate bombs. Kariyapperuma announced the new rules would go into effect ‘immediately’ but said existing users would be given ‘some reasonable time’ to get their paperwork sorted out. Sri Lanka, which has a population of 20 million people, has 12 million telephone subscribers, of which 10 million are mobile phones, Kariyapperuma said.
Dev partners stress accountability of politicians, bureaucrats for PRS implementation Asif Showkat
Bangladesh’s development partners observed that the accountability of politicians and bureaucracy to the pubic is important for formulation of the draft of the second Poverty Reduction Strategy. ‘Because of the lack of political accountability, the formulation and proper implementation of the PRS will not be addressed,’ said a summary of the development partners’ comments on the draft of the PRS for Bangladesh. They made the comments after the Ministry of Planning submitted the draft second PRS to the local consultative group, a forum of representatives of development partners, in the first week of June. The second version of the lender-driven development handbook, styled Poverty Reduction Strategy, for the three years from the 2008-09 to the 2010-11 fiscal years was announced last month. The representatives of the World Bank, European Commission, UK’s Department for International Development, Denmark, Germany, the Netherlands and Sweden said that public consultations with partners and civil society members is important for the formulation of the second PRS. The draft of the PRS has not made clear the process on how the development partners will discuss with the government the country’s poverty reduction programme. The United Nations, European Union, DFID, Denmark, Austrian Aid and GTZ (German Agency for Technical Cooperation), the Netherlands and Sweden observed that the second PRS needs to be an operational tool for government and partners. The development partners suggested that alignment between the PRS, priority areas under the Millennium Development Goals, national budget and institutional mechanisms is essential. The PRS should be a base for formulation of the planned GOB-Donor Joint Cooperation Strategy. They said the draft of the second PRS should be clear as to what the priority areas are and what the cost for implementation of poverty reduction projects will be. Tighter prioritisation and sequencing of intervention will be required in the second PRS. They suggested that the poverty reduction priority areas need to be resourced and funding gaps have to be identified in the draft of the PRS. The draft should have clear links with national budget, annual development programme and the mid-term budgetary framework. The development partners said the institutional set-up and process of monitoring and reviewing the PRS needs to be clearer. As part of the Paris Declaration, donors have pledged to provide appropriate support to the government for implementation, monitoring and reviewing of the PRS. The first three-year Interim Poverty Reduction Strategy Paper was adopted due to donor pressure in early 2002. The PRSP was the guiding force of the government’s anti-poverty measures, for which the International Monetary Fund and the World Bank had already given it more than $700 million in loans. Earlier, development partners had said that their future loans to Bangladesh would be given on the basis of the PRSP’s directions.
Maoists in Nepal up efforts for new govt Press Trust of India . Kathmandu
Nepal Maoists have stepped up efforts to form a new government under the leadership of its chairman Prachanda, with a key meeting held Saturday with the CPN-UML party on the outskirts of the capital. The Communist Party of Nepal (CPN-Maoist), which emerged as the single largest party in the April 10 Constituent Assembly elections, held a crucial meeting with CPN-UML in an effort to chalk out a roadmap for the formation of a government that has been delayed due to deadlock among the mainstream parties over power sharing. Hectic consultation began among the CPN-UML leaders at Dhulikhel resort in the east of Kathmandu on issues linked to the formation of a new government, power sharing mechanism and common minimum programme. Party sources said besides the election of the first president, vice president, the constitutional process for drafting the statute were among the prominent issues that featured during the discussions between the communist leaders. Political activities have intensified in the country after the tabling of the constitution amendment bill in Constituent Assembly that would pave the way for the formation and dismissal of the government through simple majority vote.
Study finds arsenic threats in South-East Asia Associated Press . Bangkok
Bangladesh is the worst arsenic affected country, where hundreds of thousands of people are in danger of dying from cancers of the lung, bladder and skin, according to a new study. Arsenic, especially in drinking water, is a global threat to health, affecting more than 70 countries and 137 million people. Myanmar’s cyclone-devastated Irrawaddy delta and Indonesia’s Sumatra island face high risks of arsenic contamination in groundwater that could cause cancer and other diseases in residents. Using a digitalised model that examines geological features and soil chemistry in Southeast Asia, researchers writing in the peer-reviewed journal Nature Geoscience mapped several likely hot spots that had never been assessed for arsenic risks. ‘Obviously, there is concern,’ said Michael Berg, one of the five authors, who is a senior scientist at the Swiss Federal Institute of Aquatic Science and Technology in Dubendor, Switzerland. ‘If you look at our data, there is risk of arsenic in the ground water.’ Odorless and tasteless, arsenic enters water supplies from natural deposits in the ground or from agricultural and industrial practices. Arsenic is poisonous when consumed in high doses, but even smaller amounts can cause cancer, skin problems and abnormal heart rhythms. Berg and the other authors determined a high risk of arsenic contamination exceeding World Health Organisation guidelines in Myanmar’s Irrawaddy delta, a low-lying area hit by a May cyclone that killed at least 84,537 people. Their models also found that 38,610 square miles of Sumatra’s east coast was at risk as well as the Chao Phraya river basin in central Thailand – although the dangers in the Chao Phraya were lower because residents in the area tap deeper aquifers. Researchers said regions with organic-rich sediment containing silt and clay have a higher likelihood of arsenic contamination. ‘These are very young sediments. Only in young formation do we find that arsenic can be released from the sediment,’ Berg said Friday, adding that arsenic in soil that is much older has been mostly washed away. Berg said he hopes the maps they developed could serve as ‘a red flag’ for authorities to take precautions before building wells or other water facilities in areas deemed at high risk of arsenic contamination. Until now, testing for arsenic has been rare in many regions because it is costly and time consuming, he said. Lex van Geen, a geochemist at Columbia University’s Lamont-Doherty Earth Observatory who has studied arsenic contamination in Bangladesh and did not participate in the study, said it should be lauded for drawing attention to areas where little research has been done on the arsenic threat, such as Myanmar. But he said the digital models do not identify areas well below the surface where water quality is good. ‘Using the mapping based on surface geology will identify settings where arsenic could be high in shallow groundwater,’ van Geen said. ‘What it can’t tell you is how deep you might have to go to reach the low arsenic water, which is really what matters from a mitigation point of view.’
Govt extends Abdul Jalil’s parole Bdnews24.com . Dhaka
The government has extended the term of parole for Awami League general secretary Abdul Jalil by one more month, a home ministry official said Saturday. Jalil is now undergoing treatment at Mount Elizabeth Hospital in Singapore. Mizanur Rahman, deputy secretary of the home ministry, told the news agency that the decision on extending his parole for a fourth time was taken Thursday. Jalil was released on one-month parole on March 2 for better medical treatment abroad. He flew to Singapore on March 3. The joint forces arrested the AL leader on May 28, 2007. He was admitted to LabAid Cardiac Hospital on July 15 with kidney and heart diseases.
FBCCI to set up one-stop service cell Staff Correspondent
The Federation of Chambers of Commerce and Industry will within weeks set up a one-stop cell and entrepreneur training institute to serve businesses effectively, said Annisul Huq, president of the apex trade body, on Friday. ‘The FBCCI will establish a one stop cell so that businesses can receive instant support from the guardian organisation,’ Annis said while addressing a function organised by the Bangladesh Abhyantarin Poshak Prastutkarak Malik Samiti in Dhaka. Annis hoped that the proposed cell will help businesses reach law enforcers instantly during crisis period and get services from other government organisations, including trade license office, tax departments and utility services providers. The FBCCI president said the proposed entrepreneur training institute would educate businessmen on up-to-date knowledge on cost-effective production, marketing and trend of business. BAPPMS president Mohammad Alauddin Malik chaired the function also addressed by the FBCCI first vice-president Abul Kashem Ahmed and vice-president and Abu Alam Chowdhury. Alauddin said the RMG industries have annual turn over of Tk 22,000 crore and employ over eight lakh people directly or indirectly.
Suspected robber lynched in Ctg Staff Correspondent . Chittagong
A mob lynched an alleged robber after his gang stabbed to death a union parishad member at Burumchhara in Anowara upazila of Chittagong on Saturday. The deceased was Nurul Islam, 60, member of Burumchhara union parishad, while the lynched robber was Shahidul Islam, 25, son of Abdul Mahtab of the area. The police and local sources said a gang of robbers had swooped on the residence of Nurul Islam at about 5:00 am and stabbed him as he tried to resist them and screamed. The local people came to his rescue and caught one of the members of the gang after a short chase. They gave him a good beating eventually killing him on the spot. Islam died from injuries soon after his admission to the Chittagong Medical College and Hospital.
Cop killed in road accident Bdnews24.com . Dhaka
A bus ran over and killed a police officer in front of the Institution of Engineers, Bangladesh on Saturday, the police said. ASM Rafiqul Islam was a sub-inspector of the Kafrul police station. Fazlul Haque, officer-in-charge of the Kafrul police, said Rafiqul Islam, a father of two, was travelling by a motorcycle, with his cousin Masud behind, to the police station from Dhania under the Demra police area. The bus rammed into the motorcycle, tossing Rafique onto the road, Haque said. Masud was injured. The police arrested bus driver Syed Abdullah Al Mamun, 35, and his assistant Sohel, 22. A case was registered with the Shahbagh police station.
Schoolboy stabbed to death in city Staff Correspondent
Assailants stabbed to death a schoolboy at Khilgaon in Dhaka Saturday afternoon. The victim, Mohammad Saifuddin, 13, son of Mohammad Aman Ullah of Dasherkandi area, was a class VII student of Trimohoni High School at Khilgaon. According to the victim’s family, Saifuddin’s cousin Alamgir locked in an altercation with their neighbours Kamruzzaman and his brother Nuruzzaman, over repayment of money Alamgir owed to Nuruzzaman. At one stage, they swooped on each other and some local people present there resolved the issue. Soon after, the two brothers waylaid Saifuddin and stabbed him in the chest on his way home from school at around 3:15pm. Local people rushed him to Dhaka Medical College Hospital where doctors declared him dead. Mohammad Babla, elder brother of the victim, filed a case with the Khilgaon police accusing the two brothers.

Sunday Bangladesh News

Lighter ship workers continue strike in Chittagong Staff Correspondent . Chittagong
The lighter ship workers continued to abstain from working on Saturday, thus suspending cargo transportation to and from Chittagong for the second day, to press home their demand for higher wages. The work abstention of the workers has also forced nine mother vessels in the Outer Anchorage of the Chittagong Port to wait idly, disrupting port activities severely, said sources. Port sources said four of the mother-vessels were waiting with imported food grains, four with cement clinker and one with fertilizer, all of which need immediate unloading for the sake of the national economy. The Lighterage Workers’ Union started the work abstention programme on Friday as per its prior announcement, especially after the workers’ demands remained unfulfilled even after several demonstrations. The workers staged sit-in programmes in front of the office of the Water Transport Coordination Cell in Agrabad on July 5 and 6, and also formed a human chain in Patenga to underscore their demands. Mohammed Isha, president of the Lighterage Workers Union, said their wages were not increased in the past four years even though the prices of essential commodities soared beyond their reach, and even though freight charges were increased several times. Sources said nearly 800 lighter vessels were engaged in carrying goods to and from Chittagong and loading and off-loading the mother vessels at the Outer Anchorage. The Water Transport Coordination Cell was holding a meeting with the leaders of the Lighterage Workers Union and Chittagong Port Lighterage Contractors Association in an effort to end the deadlock till the filing of this report in the afternoon.
Govt mulls all-party dialogue to wrap up series: adviser Staff Correspondent
The interim government is weighing the idea of convening an all-party dialogue to wrap up major recommendations extracted from the on-going talks with the political parties and civic groups to seal a final approval of the agreed issues. ‘At one point of the current bilateral discussions [with the parties], the government may call such an [all-party] dialogue, but its modalities must be finalised beforehand’, the commerce and education adviser, Hossain Zillur Rahman, told newsmen on Saturday after talks with Bangladesh Khelafat Andolan which proposed the idea of an all-party meeting in order to reach a consensus on major national issues. Addressing a joint-press briefing at the Chief Adviser’s Office after the 22nd meeting of the series of dialogues with political parties, the adviser said that the government was continuing its efforts to bring the Bangladesh Nationalist Party to the dialogue. A seven-member delegation of the Bangladesh Khelafat Andolan, led by party ameer Shah Ahmadullah Ashraf, joined the dialogue with a panel of advisers headed by chief adviser Fakhruddin Ahmed at the latter’s office in Tejgaon. The party placed a 30-point proposal including introduction of Shariah law in every sphere of life. The party also proposed amendment to the constitution inserting ‘Allah is Almighty’ and elevating the status of the Khatib of the Baitul Mukarram national mosque to that of the chief justice. The party also wanted measures so that a woman could not assume top constitutional positions like president and prime minister of the country as, according to the party, Islam did not permit women’s leadership. It also asked the government to arrest rocketing prices of essentials, stop ‘destructive’ political programmes, continue the drives against corruption suspects, relax the state of emergency before the national polls and scrap ‘anti-Islamic’ provisions in the National Women Development Policy 2008. ‘We have also requested the government to take all necessary steps to hold a meaningful national election for smooth transition to democracy’, said Zafar Ullah Khan, the general secretary of the party. He said his party wanted a return to the presidential form of government. The commerce adviser said that Khelafat Andolan had emphasised selection of honest and competent candidates for elections to bring about qualitative changes in politics. The party also proposed that an all-party dialogue should be called to wrap up the suggestions made by the parties in the dialogues and to prepare a document for final approval on the agreed issues, said the adviser. He said that the party had also suggested that issues like enactment of laws to ban hartals and strikes and formation of a constitution commission could be discussed at the proposed all-party meeting. When asked how the government viewed the proposal for an all-party dialogue, the commerce adviser said that the government at one point of the on-going bilateral talks might call an all-party meeting. Asked if there had been any progress in the efforts to bring the Bangladesh Nationalist Party to the dialogue, Hossain Zillur said that many quarters were continuing the efforts. The government is pursuing its principle to involve everyone in the process, he said. On the second round of meeting with the Awami League, the adviser said that the party had said it would let the government know when it wanted to sit [for the next meeting]. The commerce adviser said that the government was trying its best to contain commodity prices. He referred to a number of budgetary measures in the social sector to help the poor cope with the situation. ‘We are trying to intervene so that there is no…manipulation of the market’, said the adviser adding that the recent oil price adjustment had a great impact on commodity prices.
TRANSIT TO INDIAWe won’t agree any deal contrary to sovereign interest: Iftekhar Staff Correspondent
The foreign affairs adviser, Iftekhar Ahmed Chowdhury, on Saturday announced an ‘unequivocal and firm’ stance on the issue of transit to India, saying the foreign ministry would never ever agree any arrangement which is contrary to Bangladesh’s sovereign national interest. Referring to media reports on transit to India, he said, ‘I wish to announce unequivocally and firmly that the ministry of foreign affairs will never, under any circumstances, agree any arrangement that is contrary to our sovereign national interest.’ Iftekhar said, ‘We are prepared to negotiate with any country on any subject, but no solution can ever be imposed on us without our consent. This is an axiomatic truth of our diplomacy.’ ‘I wish to apprise all concerned of this in the clearest terms and reassure the nation in this respect,’ he said. After a meeting with the foreign adviser on Thursday, the Indian high commissioner, Pinak Ranjan Chakrabarty, was asked whether the transit issue would come up at the Bangladesh-India foreign secretary talks, scheduled to be held in New Delhi. Pinak said India was discussing the matter at all the forums as it is interested in transit. He said, ‘We believe it is purely an economic issue, not a political issue at all. But here it is made a political issue although I do not see any reason for that.’ Pinak, however, dismissed that India had set any timeframe to get the transit facility from Bangladesh.
BNP won’t accept conditions for joining dialogue Staff Correspondent
The BNP secretary general, Khandaker Delwar Hossain, on Saturday said his party was still willing to contest the elections if Khaleda Zia and other political leaders were released but reiterated that the party would not accept any conditions for joining the on-going dialogues. Delwar denied there was any communication or contacts between the BNP and the government and said that if the interim administration wanted to hold a free and fair election, political leaders, including Khaleda Zia, must be released and that ‘there is no alternative to it’. He also claimed that his party would go by the four-party alliance’s decision not to contest the local government polls and would not field candidates. ‘If anyone of us contests the polls, he will do it on his own and the party and the alliance will take action against them at a right time’, he said. Delwar was talking to a group of party activists from Narsingdi at his Sher-e-Bangla Nagar flat when the former general secretary of Biplabi Chhatra Union, Abdul Mannan Khan, a student leader during the 1969 mass upsurge, joined the BNP. Mannan Khan’s joining the BNP is seen as a measure to fill the gap created by the expulsion of the party secretary general Abdul Mannan Bhuiyan in Narsingdi. Leaders of the district unit BNP, former lawmakers and leaders of its front organisations attended the programme. Maniruzzman, brother of 1969 martyr Asaduzzaman, party joint-secretary general Nazrul Islam Khan, acting office secretary Rizvi Ahmed, Khairul Kabir Khokon, Habibunnabi Khan Sohel and Abdul Kader Bhuiyan Jewel were present on the occasion. The BNP secretary general also expressed resentment that the government had not yet responded to the party’s call for sending Khaleda Zia’s sons Tarique Rahman and Arafat Rahman abroad for better treatment. ‘I think they [government] are not serious about the matter because of their bias against us though it was expected that all should be given equal chances for medical treatment’, he said. Responding to a question regarding the remarks of the party chief’s adviser ASM Hannan Shah that the decision to boycott polls was not taken at the party forum, Delwar said that making such comments was nothing new for him [Hannan]. Delwar accused the government of trying to implement ‘blueprint’ to give away oil, gas and other resources to foreigners.
Iran says talk of US attack ‘craziness’ Agence France-Presse . Tehran
Iran on Saturday dismissed speculation that it risked being attacked by the United States over its contested nuclear drive, saying that a military strike would be ‘craziness.’ ‘Any aggression or military action against Iran is an idiocy whose repercussions would hurt all,’ government spokesman Gholam Hossein Elham told reporters. ‘I don’t think that such craziness and nonsense will prevail or is do-able militarily,’ he added. Iran has repeatedly vowed a crushing response to any aggression against its soil and an aide to the supreme leader Ayatollah Ali Khamenei warned on Saturday that Iran would target US bases and Israel if it is attacked. ‘If America and Israel shoot any bullets and missiles against our country, Iranian armed forces will target the heart of Israel and 32 US bases in the region before the dust from this attack has settled,’ the Fars news agency quoted Mojtaba Zolnoor as saying. The United States and its top regional ally Israel have never ruled out attacking Iran over its nuclear drive, which the West fears could be aimed at making nuclear weapons. There has been concern an attack against Iran could be imminent after it emerged Israel had carried out manoeuvres in Greece that were effectively practice runs for a potential strike against Iranian nuclear facilities. Tensions over the nuclear standoff have surged again in recent days after Iran test-fired a broadside of missiles – including one it says brings Israel within range – in war games that provoked international concern. The Iranian foreign minister, Manouchehr Mottaki, has also warned that if the United States or its regional ally Israel attack Iran, ‘then our response to them will be harsh and devastating.’ On Wednesday, Tehran said it test-fired its Shahab-3 missile – the longest-range weapon in its arsenal – and eight other missiles, adding it fired more missiles on Thursday in land manoeuvres at night and naval war games by day. Mottaki described the missile firing as a show of ‘Iran’s capabilities and ability in the military field.’ Meanwhile, diplomatic efforts aimed at solving the five-year nuclear standoff have also continued. World powers last month presented Iran with a package aimed at ending the nuclear crisis by offering Tehran technological incentives in exchange for suspending its sensitive uranium enrichment programme. Iran has proposed its own package – a more all embracing attempt to solve the problems of the world including the nuclear standoff – and has made much of the common ground between the two proposals. Iran’s nuclear negotiator Saeed Jalili is to meet the EU foreign policy chief, Javier Solana, – who leads the talks on behalf of world powers – in Geneva on July 19 in their latest effort to break the deadlock, Iranian officials said. Elham again insisted that Iran would not give up enriching uranium, saying ‘no issue depriving our people of their rights can be debated. We will never accept any preconditions for negotiations.’ Western powers fear Tehran could use the process to make a nuclear weapon but Iran rejects the accusations insisting its nuclear programme is aimed solely at generating energy for a growing population. Indeed, Elham said it was the world powers who had changed their position and implied he believed they had dropped their demand for a suspension. ‘They themselves have retreated from their positions and became aware that such a request (for suspension) is an illogical one. Thus they have taken a rational move,’ he said. ‘The US position is showing that they are taking a logical path,’ he added, without giving further details. However, the offer handed to Iran by Solana last month makes it clear that Iran must suspend enrichment for full negotiations on the incentives package to begin. Iran has already responded to the offer in a document that has yet to be published but has been described by Solana as a ‘complicated and difficult letter that must be thoroughly analysed’.
No need for special drive before national polls, says Matin United News of Bangladesh . Chittagong
The home affairs adviser, MA Matin, has said the law and order situation is under control even though it has deteriorated a little bit. ‘I think that there is no need of conducting special drive before the national elections. Regular drives to arrest the listed criminals would continue as a routine work. Each criminal, no matter who is, wouldn’t be spared,’ he said. His remarks came while talking to the media after a closed door meeting on law and order situation with high officials of police and district administration at the Circuit House in Chittagong on Saturday. About the strike by river transport workers, he said the government was trying to solve the problem. Replying to a question about the release of the detained BNP chairperson Khaleda Zia and her two sons, Matin said the government was considering the issue and the home ministry had nothing to do with it right now. MA Matin said deputy commissioners and police supers were given directives to maintain law and order so that the ensuing local elections could be held peacefully. DIG (Chittagong division) AKM Shahidul Haq, metropolitan police commissioner M Akbar Ali and deputy commissioners and police supers of 11 districts of the division attended the meeting.
Two killed in ‘crossfire’ in Comilla, Jhenidah Our Correspondents . Comilla and Jhenaidah
Two alleged criminals were killed in separate incidents of ‘crossfire’ in Comilla and Jhenidah on Saturday and Friday respectively. Our correspondent from Comilla reports: An alleged criminal was killed in an encounter with the Rapid Action Battalion in Chandina upazila of the district early Saturday. The deceased was Ali Ahmed alias Oli Dacat,35, son of Abdur Rahim of Mohonpur-Nolpuripara of the upazila. The RAB sources said, on secret information, a team of the battalion raided Madaia village of Chandina upazila at about 4:30 am when Ali Ahmed and his gang were preparing to commit a robbery. As the battalion approached, Ali’s associates opened fire on its members forcing them to fire back triggering a gunfight that continued for 15 minutes. As the shootout ended, the RAB found Ali Ahmed dead. The elite force also recovered a pipe gun, an LG, three bullets, a knife and 7 cartridges from the spot. Ali Ahmed committed various grisly crimes including robbery and extortion in the area for long, the RAB said adding that he was accused in seven criminal cases filed with the Comilla sadar Dakshin police station. Our correspondent from Jhenaidah adds: A suspected criminal was killed in an encounter with the police in Jhenaidah Friday night. The deceased was Bidhan Pramanik, 28, son of Sadhan Pramanik of Paramanandapur village in Moheshpur upazila. The police said, acting on a tip-off, a contingent of the police had raided the Bedepara area of Khalishpur near the bank of the River Kobadak at about 8:30 pm. Sensing presence of the police, Bidhan’s associates started firing on the law enforcers forcing them to retaliate triggering a gunfight in which Bidhan fell dead. The police recovered two local guns, four rounds of bullets and 190 bottles of Phensedyl syrup from the spot. Acting officer-in-charge of the Moheshpur police station, Safiqur Rahman, said, Bidhan was accused in a number of cases including drug trade.
Seven Pak troops killed in ambush Agence France-Presse . Peshawar
Suspected Taliban militants ambushed a Pakistani paramilitary convoy Saturday in a restive northwestern town, killing at least seven soldiers and wounding dozens more, officials said. The convoy was heading to a fort outside Hangu district near the border with Afghanistan when the rebels attacked it with rocket propelled grenades and assault rifles, local police officer Shakirullah Jan said. He did not however confirm the death toll. A senior security official, said seven soldiers were killed and 25 wounded in the attack in the neighbourhood of Zargari, outside Hangu city. Security forces responded by attacking Taliban positions using gunship helicopters and artillery fire in the mountainous region. ‘We have reports three militants were killed and 10 wounded in retaliatory fire,’ the security official said. Hangu district, which has a history of violence between minority Shia and majority Sunni sects, is close to tribal areas bordering Afghanistan where pro-Taliban militants are active. Pakistan’s new government is facing growing unrest just five months after defeating US-backed president Pervez Musharraf’s allies in elections, with Islamist violence on the rise and political fissures opening up. Saturday’s attack on security forces was the latest incident in a bloody week in the country, including several bombings. A suicide attack killed 19 people near a protest marking the anniversary of a bloody government-backed raid on the radical Red Mosque in Islamabad six days ago. Although there was no immediate claim of responsibility officials said they were examining a range of possible culprits, including the mosque’s former students and Taliban militants based near the border with Afghanistan. That bombing was followed the next day by a string of six blasts in Pakistan’s populous southern port city of Karachi, which saw one person killed and 37 injured. Pakistani forces launched an operation two weeks ago against Islamic radicals near the northwestern city of Peshawar but the government has yet to convince its foreign backers it is serious about combating militancy. The government comprises the Pakistan People’s Party of former premier Benazir Bhutto, who was assassinated in December last year, and the grouping of ex-prime minister Nawaz Sharif. Kabul has also put pressure on Islamabad to tackle Taliban rebels based near the border, with a suicide car bomb attack on the Indian embassy in the Afghan capital on Monday leaving 41 dead and around 150 injured. Afghanistan has repeatedly accused Pakistan’s intelligence agencies of supporting the Taliban. Islamabad backed the hardline regime during its 1996-2001 rule but denies any current links to the militia.

Sunday Bangladesh News

Under-trial children still in jails on bailable charges Laws allow bail to children even in non-bailable cases Shahiduzzaman
Three hundred and forty-nine under-trial children keep languishing in jails in violation of laws and despite repeated High Court orders not to keep juveniles in prisons. At least 138 of them are facing bailable charges while the laws stipulate bail for the juvenile even in the case of non-bailable charges. According to a study done by Save the Children UK, 350 children were languishing in 57 jails of the country as of June 30 and only one of them was convicted. Various laws, even the Special Powers Act 1974, are being used in putting children behind bars although children in conflict with the law should be dealt with only under the Children Act 1974. Although an order was issued on August 7, 2006 from the police headquarters, at the instruction of the national task force on juvenile justice, asking police officials not to arrest any juveniles under the Special Power Act 1974, at least 82 children — 77 boys and 5 girls — were arrested under the law between January 1 and May 31 flouting the order, said sources in the task force. Section 48 of the Children Act 1974 stipulates, ‘Where a person apparently under the age of sixteen years is arrested on a charge of a non-bailable offence and cannot be brought forthwith before a court, the officer-in-charge of the police station may release him on bail.’ The juvenile accused also deserve bail in cases on non-bailable charges even under the criminal justice system. Section 497(1) says, ‘Provided that the court may direct that any person under the age of sixteen years… accused of such an offence [non-bailable] be released on bail.’ According to Section 49(2) of the Children Act, a court, on remanding for trial a child who is not released on bail, will order him to be detained in a remand home or a place of safety. A High Court bench of Justice Amirul Kabir Chowdhury and Justice Nijamul Haque Nasim delivered a verdict on April 9, 2003 detailing a seven-point directive for the government in this regard. No juvenile accused should be kept in jail and child inmates should be transferred to correction homes and other designated shelters from jails with utmost expedition, the court said. The directives are yet to be implemented in their entirety, according to information available with the national task force on juvenile justice. The task force has representation of 27 government and non-governmental agencies. As prisons witnessed a gradual increase in the number of juvenile inmates, the High Court on March 4, 2007 issued a fresh rule on the government suo moto to explain why necessary action would not be taken against it for keeping children in jails in violation of the High Court verdict delivered on April 9, 2003. According to sources in the task force, the number of children in jails increased by 42 in a month after the High Court had issued a fresh order on March 4, 2007. In 2007, at least 1,712 children, including 187 girls, were sent to jail. Against this backdrop, the High Court bench of Justice Syed Mahmud Hossain and Justice Farid Ahmed on July 24, 2007 ordered the government to transfer the children languishing in jails to juvenile development centres immediately. The authorities, however, flouting all the laws and despite High Court directives, continue keeping even under-trial children in jails while three government-run juvenile development centres, with the accommodation capacity of 700, remain practically deserted with only 316 inmates.
AL yet to settle issues for three mayoral posts Candidature dispute over six municipal mayor’s posts Partha Pratim Bhattacharjee
The Awami League is still in a dilemma over the selection of mayoral candidates in the three of the four city corporation polls with the deadline for the withdrawal of nomination papers expiring today. The divisional chapters of the Nagarik Committee and local Awami League leaders in Rajshahi, Barisal and Sylhet are disappointed at the nominations made by the alliance led by the Awami League. Local party units are also faced with trouble over the selection of candidates for mayoral posts in the elections to six out of the nine municipalities. The Election Commission on June 20 announced the schedule for the elections to four city corporations and nine municipalities, scheduled for August 4. The four city corporations going to polls are Rajshahi, Barisal, Sylhet and Khulna and the nine municipalities are Naohata in Rajshahi, Dupchanchia in Bogra, Sreepur in Gazipur, Fulbaria in Mymensingh, Golapganj in Sylhet, Sitakunda in Chittagong, and Chuadanga, Manikganj and Shariatpur district headquarters. The high up in the Awami League-led combine is still in trouble despite the announcement of mayoral nominations for elections to four city corporations on Thursday. The combine, however, announced local units would nominate candidates for the nine municipal elections and it would not interfere with the matter. The alliance nominated city Awami League president Talukdar Abdul Khaleque for the Khulna mayoral post, city Awami League convener Shawkat Hossain Hiron for the Barisal mayoral post, district unit president Badar Uddin Ahmed Kamran, now in jail, for the Sylhet mayoral post and Workers Party politburo member Fazley Hossain Badsha for the Rajshahi mayoral post. Although the alliance nominated Badsha, central Awami League leader Khairuzzaman Liton vowed not to withdraw his nomination for the Rajshahi mayoral post as the party’s central working committee on July 1 fielded him as the mayoral candidate. The Nagarik Committee and local party leaders in Rajshahi threatened not to work for Badsha if the alliance would not withdraw his nomination by today. They on Friday gave the central leadership two days to revoke the decision on Badsha’s nomination. All the Awami League-led combine partners except for the Workers Party on Saturday extended their support for Khairuzzaman as the Rajshahi mayoral post. The alliance leaders and activists in Barisal were not satisfied at the nomination of Shawkat Hossain as the mayoral candidate. Local Awami League and Nagarik Committee leaders want the Barisal chapter Nagarik Committee president, Enayet Pir Khan, as the mayoral candidate. They vowed to work in favour of Enayet Pir and urged the central leadership to reconsider the alliance nomination. Local Awami League leaders in Sylhet were also in a dilemma over the mayoral candidate selection. There are at least three aspirants of the party for the mayoral post. Former Sylhet municipal chairman Babrul Hossain Babul and former Awami League lawmaker Inamul Haque Bir Pratik vowed not to opt out of the electoral race. Awami League presidium member Matia Chowdhury told New Age the party was sympathetic to Khairuzzman Liton as he is member on the party’s central working committee, but said he should agree the party decision. ‘Our prime objective is to keep the alliance united and we need to sacrifice something in the greater interest of the alliance… I think Khairuzzaman will understand the reality and change his mind,’ she said. Matia said as local government elections were non-party, the central leaders would not join the campaign for the city corporation polls. The Workers Party general secretary, Bimal Biswas, hoped Khairuzzaman would accept the alliance decision and withdraw his nomination. ‘If he does not accept the decision and does not withdraw his nomination, it will threaten the alliance unity.’ A presidium meeting scheduled for this morning may make a decision in this regard. As for elections to nine municipalities, local leaders could unanimously nominate candidates only for three municipalities — Dupchanchia, Shariatpur and Sitakunda. Three party leaders — Anisur Rahman, Sheikh Nazrul Islam and Ahsanullah — are contesting for the mayoral post of the Sreepur municipality. They are all unwilling to withdraw nomination papers. Three party leaders — Zakaria Ahmed Paplu, Sirajul Jabbar and Aminul Islam Rubel — are also contesting for the mayoral posts of the Golapganj municipality and all of them vowed to contest the polls. There are also three party leaders contesting for the mayoral post of the Fulbaria municipality. The aspirants are Nurul Islam, Golam Kibria and Yunus Ali. Three Awami League leaders have submitted nomination papers for the mayoral post of the Naohata municipality. The aspirants, all still in the race, are Abdul Gafur, Abdul Bari Khan and Bhuban Saha. Two party leaders are in race for the mayoral post of the Chuadanga municipality. They are Reyajul Islam Toton and Eakramul Huq Mukta. Party leaders Sudeb Saha and Ramjan Ali, now in jail, are contesting for the mayoral post of the Manikganj municipality. Grassroots leaders unanimously selected Abdur Rab Munshi for the mayoral post of the Shariatpur municipality, Ahamedur Rahman Biplob for Dupchanchia and Safiul Alam for Sitakunda.
AL but WP extend support for Khairuzzaman in Rajshahi Our Correspondent . Rajshahi
All the components except for the Workers Party of the combine led by the Awami League have extended support for AHM Khairuzzaman Liton as the alliance candidate for the Rajshahi mayoral post. The component leaders at a briefing at the Nagarik Committee office on Saturday also urged to the city dwellers to work on behalf of Khairuzzaman in view of the elections. They said the central leadership of the combine had nominated Workers Party leader Fazley Hossain Badsha. But the leadership had not elicited the opinion of Rajshahi leaders, they said. ‘We will put in all our efforts to work for Liton in the city corporation polls,’ according to the statement read out at the briefing. They also urged the central leadership of the combine led by the Awami League to reconsider the combine nomination for the mayoral post. The Rajshahi city Jatiya Samajtantrik Dal general secretary, Abdullah Al Masud Shibli, read out the statement on behalf of the combine partners holding the briefing. The acting city Awami League general secretary, Shafiqur Rahman Badsha, city unit vice-president Rafique Uddin, district Awami League general secretary Omar Faruk Chowdhury, city unit Jatiya Samajtantrik Dal president Pradeep Mridha, language movement hero Mosharraf Hossain Akhunji, also the city unit National Awami Party president, city Gana Forum president Rafiqul Hasan and city Ganatantri Party president Masud Rana attended the briefing. Language movement hero Abul Hossain, also the convener of the Rajshahi chapter of the Nagarik Committee and member secretary Sayed Shafiqul Alam, former city Awami League president Mahbub Zaman Bhulu and other Nagarik Committee members attended. The Rajshahi chapters of the Chemists and Druggists’ Association and the Muslim Matsyajibi Samaj have extended their support for Liton. At a meeting at the Nagarik Committee office Friday night, they said they would work for Liton in the city corporation polls.
Deadline for nomination withdrawal expires today Staff Correspondent
The deadline for the withdrawal of nomination papers for the August 4 elections to four city corporations and nine municipalities expires today. The returning officers will announce the final list of the contesting candidates and distribute polls symbols soon after the end of the deadline. Candidates are preparing for formal electioneering from tomorrow, the day the government will ease the state of emergency to allow full-fledged electoral campaigns. The interim government announced to ease the ban on rallies and processions for electioneering for 21 days beginning from tomorrow in areas where polls will take place. The home ministry, in the gazette notification, said campaigns, processions, rallies and meetings could be organised and people could join them within the purview of the Local Government (City Corporation) Ordinance 2008 and the Local Government (Municipality) Ordinance 2008. The Election Commission on June 20 announced the polls schedule. The four city corporations going to polls are Rajshahi, Barisal, Sylhet and Khulna. The nine municipalities are Naohata in Rajshahi, Dupchanchia in Bogra, Sreepur in Gazipur, Fulbaria in Mymensingh, Golapganj in Sylhet, Sitakunda in Chittagong, and Chuadanga, Manikganj and Shariatpur district headquarters.
Govt to talk gas rationing with industries, power officials Staff Correspondent
The chief adviser, Fakhruddin Ahmed, on Saturday directed energy officials to discuss with the businesspeople and power officials the issue of gas rationing for industries and closing down energy-inefficient power units to divert gas to efficient units. Fakhruddin gave the directives at a meeting with the energy officials, led by the chief adviser’s special assistant for power and energy ministry M Tamim, on the present gas supply situation at the Chief Adviser’s Office. The energy officials made a presentation on the gas supply situation and possible gas rationing for fertiliser and power plants and industries as Petrobangla is facing a shortage of 200 million cubic feet of gas a day. The energy officials floated an idea that gas supply to industries could be staggered — each of the industries in an area will not consume gas for one day a week and get proper supply for six other days of the week, said sources attending the meeting. Fakhruddin asked the officials to work out how much gas each industrial area consumes and how much the businesspeople would benefit from the plan before they are consulted on gas rationing issue. ‘We do not know area-wise gas consumption rate. We have to work it out. We will then sit with businesspeople on the issue. I think it is better to get gas at 90 per cent pressure for six days than at 60 per cent pressure for seven days,’ said a source present at the meeting. ‘If industries in one area do not take gas for a certain day in a week, other areas will get proper pressure. Industries in all the areas can stop taking gas for a day by rotation,’ he said, adding the government will not make any unilateral decision without the consent of the businesspeople. The energy officials also suggested closing down nine energy-inefficient power plant units to divert gas to efficient power plants. They observed if two small units each at Haripur, Ghorashal, Ashuganj and Shahjibazar and a unit at the Shikalbaha power plant could be closed and gas could be diverted to other big units at Ghorashal, Ashuganj, Siddhirganj and Mymensingh plants, around 100MW more electricity could be generated. Fakhruddin asked the energy officials to implement the suggestion after discussing the matter with power officials. He directed not to ration gas for fertiliser plants after energy officials had suggested the Fenchuganj and Palash fertiliser plants, which are energy-inefficient, could be shut down to supply gas to the Ghorashal fertiliser plant. The fertiliser plants consume almost double the amount of gas they should to produce around 2 lakh tonnes of urea a year. The Ghorashal fertiliser plant is now out of operation for maintenance and is expected to start production in October. Fakhruddin observed fertiliser production should not be allowed to be hampered because of the agriculture sector. Fakhruddin asked the energy officials to find out ways to increase gas production from the existing gas fields. Huge gas supply shortage has put sectors such as power and industries in trouble, hampering electricity generation and industrial expansion. Petrobangla now supplies around 1,770mmcfd of gas against the demand for about 2,000mmcfd.
Govt leases out five state-owned jute mills Staff Correspondent
The government has leased out five state-owned jute mills in the Khulna and Chittagong regions to private companies aiming to revitalise its activities. Of the mills, Nature Back Company and Sad Musa Fabric Company got two each in Chittagong while Kazi Farm another in Khulna. ‘We are taking special measures to revitalise the jute mills by leasing them out to private sector. We hope that the move will help boost the production at sick industry,’ jute adviser Anwarul Iqbal said at a press conference at the ministry on Saturday. He also said they would hand over People’s Jute Mills to Kazi Farm on July 15 when the next cabinet meeting would be held in Khulna. Jute secretary Abdur Rashid Sarkar and Bangladesh Jute Mills Corporation chairman Ataharul Islam also spoke at the press conference. According to the government decision, RR Jute Mills Ltd in Chittagong has been leased to Nature Back Company, People’s Jute Mills in Khulna to Kazi Farm, Karnaphuli Jute Mills at Rangunia in Chittagong to Sad Musa Fabric and Forat-Karnaphuli Carpet Factory in Chittagong to Sad Musa Fabric and MM Jute Mills in Chittagong to Nature Back Company. The jute adviser said the government was helping the jute growers with loans under a programme. ‘Without necessary jute, the mills will not operate smoothly.’ Some 6,329 workers and officials would be in their new employment and the leased-out five mills would produce 33,780 metric tonnes of jute products per year, the adviser said. He said earlier the jute and textiles ministry repaid bank loans by taking money from the finance ministry. Now the jute ministry would repay the finance ministry, he said, adding that the jute and textiles ministry would get more than Tk 12.50 crore per year from these leased-out jute mills. In reply to a question, Anwarul said the government and BJMC would closely monitor the five jute mills so that the leaseholders couldn’t take any unwanted advantage from that leasing. Ataharul said BJMC would set up offices in every leased–out jute mills for close monitoring. A target to produce two lakh tonnes of jute products had been set for this fiscal year, he added. Rashid said, ‘Without diversifying the jute products, the country’s jute industry will not survive.’ BJMC is currently running 14 jute mills. The process to lease out one of the mills — Alim Jute Mills in Khulna — remains suspended due to a case pending with the court. The highest bidders for MM Jute Mills in Chittagong and Qaomi Jute Mills in Sirajganj have not yet deposited security money with the BJMC.
Launch workers withdraw strike Staff Correspondent
The launch workers on Saturday afternoon, after a series of negotiations between the government, workers and inland watercraft owners, withdrew their countrywide strike enforced on Thursday midnight to underscore their demand for salary hike. The riverine workers enforced a countrywide strike demanding higher pay since Thursday midnight, leaving all kinds of launches, steamers and cargo vessels inoperative, and thousands of passengers and goods stranded. The workers joined work at around 3:30pm and water transport movement on all major routes, including the coastal districts of Chandpur, Barisal, Bhola and Patuakhali, resumed at around 4:00pm from the Sadarghat Launch Terminal. According to the Bangladesh Inland Water Transport Authority (BIWTA), the workers went on strike as the Bangladesh Water Transport Workers Federation (BWTWF) called upon them on Thursday to stop working from midnight to press home their demand for higher salaries and more facilities. The workers’ leaders said the recent hike in prices of essential commodities has forced them to go on strike. They have been barely surviving on monthly salaries as meagre as Tk 1,900 per month. A high official of the BIWTA told New Age, ‘We have managed to settle the matter at the last meeting between the government, workers and inland water transport owners, after we ended two meetings without any decision.’ Abdul Mannan Hawlader, chairman of the BIWTA, told New Age, ‘We have to admit that the demand of the workers’ is justified as unabated price hike of essential commodities has made life miserable for them and their families, forcing them to enforce the strike.’ ‘After a fruitful tripartite discussion between the government, workers and inland watercraft owners in the presence of Mahfuzul Haque, secretary of the labour ministry, the workers’ leaders decided to withdraw their countrywide strike,’ Hawlader added. Abdur Razzaq, president of BLLA, told New Age, ‘We have agreed to the proposal of the government and the watercraft owners as they have assured us that out wages will be increased and another committee has declared that we will get interim period salary from July to December.’ ‘We demanded increase of salary to Tk 3,000 from the miserable amount of Tk 1,900 that we get now, and the owners and the government should meet our demand as more than 1.25 lakh workers are engaged in this profession,’ Razzaq added. Thousands of stranded passengers started to board launches and head for their destinations soon after the strike was withdrawn, and those who had earlier returned home after failing to board any launch rushed to the Sadarghat Launch Terminal just after the strike was ended. Acting chairman of the Bangladesh Inland Water Transport (Passenger Carriers) Agency, Badiuzzaman Badal, told New Age, ‘Because of the sufferings of about 10 lakh people who have to travel everyday by launches and other watercraft, the workers decided to withdraw their strike from Saturday afternoon.’ Our Barisal correspondent reports that passenger launches plying 78 local, inner and inter-district routes of Barisal division resumed operation after 3:00pm Saturday afternoon. Ekin Ali, secretary of the District Launch Workers Union, said that they rejoined work in response to the directive of their association. Meanwhile, a press release of the BIWTA revealed that Mahfuzul Haque, secretary of the labour ministry, and BIWTA president Abdul Mannan Hawlader had assured the launch workers that government had formed a committee to increase their salaries and wages. The committee has been asked to submit its report within three months, and the new wages will come into effect from January 1, 2009. Before implementation of the decision to increase wages, another committee headed by the joint secretary of the labour ministry was formed to pay salary in the interim period to the workers, which will come into effect from July 1 to December. The committee was asked to submit its report by 15 days.