BSC Appeals for Exemption from Depositing Excess Funds

Bangla Press Desk: Heaving under huge debts and liabilities, Bangladesh Shipping Corporation (BSC) has sought immunity from the provision of mandatory depositing of surplus funds in state exchequer.

Under the act titled 'Deposition of Surplus Money of Self-Governed Agencies including Autonomous, Semi-Autonomous and Statutory Government Authorities and Public Non-Financial Corporations to the National Exchequer', it is obligatory for these government bodies to deposit their surplus funds into the treasury.

Some 61 such organisations were included in a list of the special schedule of the act in 2020 for their mandatory deposition of excess funds instead of keeping the money in their own  bank accounts or in their possession.

Former managing director of BSC Commodore Mahmudul Malek made the plea in a letter to the shipping ministry late July, which the ministry recently forwarded it to the  finance division advocating for approval.

A senior finance division official says they are scrutinising the BSC's plea before taking a decision.

In the letter the corporation's managing director had mentioned that BSC is a government statutory body listed with Bangladesh Securities and Exchange Commission. Since 47.90 per cent of its shares are privately owned, there are legal restrictions and a requirement for shareholders' approval to deposit surplus funds of this organisation into the public exchequer.

The shipping corporation had raised Tk 3.137 billion from the general shareholders through stock market to buy ships.

Until this past June, the corporation had total debts and liabilities amounting to Tk 16.94 billion: long-term loans worth Tk 12.89 billion against the procurement of six ships from China and another long-term loan amounting to Tk 540 million from the government.

Moreover, the letter has mentioned that the corporation has Tk 900-million debt as interest on old loans, outstanding liabilities to Chittagong Port Authority Tk 740 million, customs dues for ship registration Tk 300 million and liabilities against expenses and provision Tk 1.57 billion.
"BSC is an international shipping organisation. To keep the fleet of ships engaged in international trade profitably and reputably, maintaining a minimum cash flow of Tk 5.0 billion is necessary," the letter reads.

The corporation has said presently the procurement of two mother tankers and two mother bulk carriers on government-to-government basis is in its final stages. Some Tk 1.34 billion will be required from own funds for this project.

Also, the procurement of a mother tanker under self-financing at a cost of Tk 5.94 billion is in the final stage.

The corporation has argued that most of the profitable state-owned companies listed on the stock market, like Titas Gas, Power Grid Co Ltd, DESCO, Padma Oil Ltd, Jamuna Oil Ltd, and Meghna Petroleum Ltd, could not be included in the schedule of the act.

Moreover, though both BSC and Biman Bangladesh Airlines are national-flag carriers, Biman has been exempted from the schedule.

It has mentioned that a meeting was held between the BSC and finance division officials in December 2022 where a decision was made to put the corporation out of the list. "However, the decision has not been implanted until now."

The national-flag-carrier company, BSC, earned net profit worth Tk 3.06 billion in the fiscal year 2024-25, Tk 2.49 billion in the previous year, and Tk 2.46 billion in 2022-23.