Max two straight terms in trade body positions

The interim government is set to impose a limit on individuals serving as president or holding any other office in trade bodies to no more than two consecutive terms.

Additionally, there is an initiative to end the practice of nominating directors to the board of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the apex body representing the country's business and industrial sectors.

This is part of the government initiative to ensure full democratic practices in trade bodies. To achieve this, an initiative has been launched to amend and enforce the trade organisation rules that were finalised a year and a half ago.

Commerce ministry officials believe that if these two provisions are implemented, democracy and voting rights will be restored within trade bodies, paving the way for new, capable, and qualified leadership to emerge.

After the Trade Organisations Act of 1994 was amended in 2022, the commerce ministry finalised the draft of the Trade Organisations Rules 2023 in line with the new law.

According to the law, no individual can be elected to the same position in a trade organisation more than twice consecutively. Accordingly, the ministry included similar provisions in the draft rules and published it on the website in April 2023.

But due to pressure from long-serving presidents of various trade organisations and other influential business leaders close to the ousted Awami League government, the commerce ministry was unable to take the initiative to pass and implement the rules, say official sources. 

Now, an initiative has been taken to amend the draft and implement rules. Commerce ministry officials have said that the preliminary draft has already been prepared.

Commerce Secretary Md Selim Uddin told The Business Standard that preparations are underway to revise the rules governing trade associations, though he declined to provide details about the proposed changes.

Former FBCCI president Md Jashim Uddin told TBS, "The law states that no individual can be elected to the same position in a trade organisation more than twice consecutively, but the commerce ministry was unable to incorporate this provision into the rules. This was primarily due to resistance from a section of traders."

He advocated for abolishing the system of nominated directors in the FBCCI and supported the introduction of cluster-based elections.

Hafizur Rahman, a member of the Bangladesh Competition Commission and government-appointed administrator of the FBCCI, also spoke to TBS, saying, "An initiative has been taken to incorporate the provision that no individual can hold the same position in a trade organisation more than twice into the trade organisation rules.

"In the initial draft, the provision allowing nominated directors on the FBCCI board is set to be abolished. This means all FBCCI board members should be directly elected by the organisation's members. However, feedback from traders will be gathered, and the final decision will be based on the consensus of the business community," he added.

Hafizur noted that there has been a mixed response from the business community regarding the potential cancellation of the provision for nominating directors to the FBCCI board.

He cautioned that if the provision is eliminated, it could lead to a lack of sectoral representation within the FBCCI. Therefore, the final decision will be made based on the feedback from traders.

Currently, out of the total 80 directors on the FBCCI board, 34 are nominated, with 17 coming from chamber groups and 17 from association groups, while the remaining directors are elected.

Allegations have surfaced that influential, government-connected businessmen have formed new associations under various names and used their influence to secure positions as nominated directors on the FBCCI board, leading to a steady increase in the number of nominated directors.

Following the fall of Sheikh Hasina's government, some members of the business community have called for the abolition of the nominated director system within FBCCI. They have also proposed reducing the size of the board of directors by half, from 80 to 40 members.

Critics argue that while FBCCI is expected to conduct research on the challenges and opportunities within the country's industrial sector, its leadership has shown limited interest in these matters.

Instead, the organisation's leaders have been accused of leveraging their positions for personal benefits from the government and participating in political activities on its behalf. Notably, after the 2014 general elections, FBCCI leaders actively organised events in support of the Awami League government.

Even before the Awami League came to power, the FBCCI president was often elected with the backing of the ruling party's top leadership, making it nearly impossible for any other candidate to run against them.

After 2014, democratic practices within FBCCI and other trade associations began to erode, with Awami League-affiliated individuals leading these organisations, often without the need for elections.

Business leaders recalled that in 1994, Salman F Rahman was directly elected as president by the general council. Later, the election process was slightly modified. Members of the general council began electing directors by vote, while the president and vice-presidents were chosen by those elected directors.

During Amir Khasru Mahmud Chowdhury's tenure as commerce minister from 2001 to 2004, the regulations were changed to introduce a nomination system. This allowed leaders from large trade bodies and chambers, who were unable to win general council elections, to secure positions on the FBCCI board.

At that time, leaders from eight major trade organisations, including BGMEA, BKMEA, Dhaka Chamber, and Metropolitan Chamber, were appointed to the FBCCI board, while the remaining directors were elected by the council.

Since then, the number of nominated directors has steadily increased by one or two each year. In 2008, when Annisul Haque served as president, the FBCCI board had 38 members. Today, that number has grown to 80, with 34 directors appointed through nominations.