Serious allegations have surfaced that a foreign garment company is attempting to exploit loopholes in the administrative and regulatory system to take control of NASA Spinners & Garments Limited, a Bangladesh-China joint venture located in the Dhaka-Cumilla Export Processing Zone (EPZ).
Adding to the controversy are even more disturbing claims and that is BEPZA, responsible for investment protection and facilitating industrial operations in the EPZ, is accused by complainants of aligning itself with the interests of the involved foreign firm instead of rehabilitating the existing entity.
NASA Spinners is a Category-B joint venture, with a large Chinese textile mill as a partner alongside the NASA Group. The company has an estimated annual revenue of approximately 30 million US dollars, directly employs around 1,200 people, and has a loan exposure of approximately 250 crore Taka with IFIC Bank.The core question is starkly simple: why should the interests of an external foreign firm take precedence over the opportunity to revive an existing Bangladesh-China joint venture? If NASA Spinners has the potential for revival, the national interest should dictate its re-launch. A functioning export-oriented factory can create jobs, earn foreign exchange, and repay bank loans. Conversely, who stands to gain from a distressed takeover?
IFIC Bank reportedly has a loan exposure of approximately 250 crore Taka. In such a scenario, if a third party gains commercial benefits from the industrial project while the original shareholders remain burdened with significant debt, it raises serious questions. Simultaneously, the livelihoods of approximately 1,200 workers and their families are tied to this factory.This is not just about NASA. Bangladesh always invites investors from various countries, including China, for joint ventures and industrial establishments. However, if an impression is created that an existing foreign partnership project can be taken over by another foreign entity through regulatory channels, what message will it send about Bangladesh's investment climate?
BEPZA must clarify whether any discussions or agreements have taken place with any other foreign entity regarding the factory, assets, plot or operations of NASA Spinners. Until clear answers to these questions are provided, any initiative for transfer, redistribution or third-party control should be suspended.If the foreign firm genuinely intends to invest in or acquire NASA Spinners, there is only one way: come through the front door. Engage in transparent discussions with the owners, respect the rights of the Chinese partner, safeguard the interests of IFIC Bank and present a clear commercial proposal.
Any other approach will be questioned not as an investment, but rather as an attempt to seize a valuable Bangladeshi industrial asset through the ‘backdoor’.
