Cabinet okays proposal to form Sovereign Wealth Fund
Bangladesh Chartered Accountants
Bill approved
UNB
The Cabinet yesterday approved a proposal for the formation of Sovereign Wealth Fund with an authorised capital of $ 10 billion, aiming to utilise the countrys foreign currency reserve in multifaceted ways, reports UNB.
The approval to the proposal, moved by the Finance Division, came from the regular weekly meeting of the Cabinet held at Bangladesh Secretariat here with Prime Minister Sheikh Hasina in the chair.
Briefing reporters after the meeting, Cabinet Secretary Mohammad Shafiul Alam said the government will form the fund primarily with $ 2 billion from the countrys foreign currency reserve.
Later, the amount of the fund will be raised to $ 10 billion in phases taking $ 2 billion every year from the reserve money, he said adding that there will be no adverse impact on the countrys economy due to this.
Shafiul Alam said the government could utilise the Sovereign Wealth Fund for the development of any sector considering the greater interest of people. Necessary laws and rules as well as befitting structures will be framed for the purpose later, he added.
The Cabinet Secretary explained that such fund is needed especially in case of matching fund with development partners in support of the governments part of finance to implement any project taking loans from foreign banks or development partners.
He also said the government will also be able to meet any emergency through this Sovereign Welfare Fund.
Mohammad Shafiul Alam said the Cabinet was also apprised about the process and the impacts of final report on mutual evaluation in resisting money laundering and terror financing.
He said the final report on the 3rd phase mutual evaluation of Bangladesh was adopted at the Asia Pacific Group of Money laundering meeting held on September 7 last year in the USA where there was a big achievement of Bangladesh.
In the past, the Cabinet Secretary said Bangladesh had no certification for resisting money laundering but with the adoption of various measures, Bangladesh has now reached in a better position.
According to the report, out of the 40 recommendations of the Financial Action Task Force, Bangladesh gained in compliant ratings in implementing 6 recommendations, the country received largely compliant ratings in 20 recommendations, while got partially compliant ratings in 14 recommendations.
Besides, out of the 11 Immediate Outcomes (IO), Bangladesh got substantial ratings in one IO, moderate rating in 6 IOs and low-level rating in 4 IOs.
Shafiul Alam also said Bangladesh could have fallen into the list of risky countries category had the country could not improve at least two out of its six moderate IOs to substantial level.
Now we can claim that were doing very well in resisting money laundering, and now there is no money laundering from Bangladesh, he added.
Meanwhile, the Cabinet also approved the draft of the Bangladesh Chartered Accountants Bill, 2017 in a bid to make the existing law more time befitting and raising punishment for its violation.
Briefing reporters after the meeting, Cabinet Secretary Mohammad Shafiul Alam said that as per the draft law, there will be a 25-member council of the Chartered Accountants Institute and five of them, including one from the Comptroller and Auditor General Office, one each from the Ministry of Commerce and the Ministry of Finance, would be nominated by the government.
Other members of the council would be elected from those who have been working as members of the institute for at least 10 years, he said.
He said the Institute would be empowered to cancel or suspend membership in case of violation of its discipline by any Chartered Accountant after taking professional certificate.
According to the draft law, a person with mental disorder, bankrupt as declared by any court, moral deviation and misbehavior would be considered as professionally disqualified as chartered accountant.
About the provisions of punishment, the Cabinet Secretary said the draft law has a provision of maximum three years of imprisonment or up to Tk 10 lakh fine or both if anyone claims to be a member of the council which is false.
The days meeting of the cabinet also approved in principle the draft of The Ground Water Management in Agricultural Works Bill, 2017 updating the previous The Ground Water Management Ordinace 1985 and its subsequent amended versions.
According to the draft law, the Cabinet Secretary said there will be a committee at the Upazila level headed by the Upazila Chairman that will approve licence of setting up tube-wells. For violation of the law, Shafiul Alam said, there is a provision of Tk 2,000 fine and seven days of jail term in case of failure to pay the fine.
The Cabinet also approved in principle the draft of the The Trade Organizations Bill, 2017 after translating the previous The Trade Organizations Ordinance 1961 into Bangla in a bid to making the proposed law more time befitting.
The Cabinet also approved proposals for ratifying the International Convention for the Control and Management of Ships Ballast Water and Sediments (BWM), 2004 and the International Convention on the Control of Harmful Anti-fouling Systems on Ships (AFS), 2001 both as formulated by IMO.
At the outset of the meeting, the cabinet unanimously adopted two obituary references expressing profound shock at the deaths of veteran Awami League leader and former minister Suranjit Sengupta MP and Jahanara Zaman, wife of AHM Quamruzzaman, one of the four national leaders.
Suranjit Sengupta MP passed away at a hospital in the city yesterday morning while Jahanara Zaman, also mother of former mayor of Rajshahi City Corporation and president of Rajshahi city Awami League AHM Khairuzzaman Liton ,died at her Gulshan residence here early today.
Ministers and State Ministers attended the meeting while Secretaries Concerned were present.
