BCS admin cadres' organisation forays into luxury hotel business

Expanding its scope beyond its traditional role, the Bangladesh Administrative Service Association (BASA) – an organisation of Bangladesh Civil Service (BCS) administration cadres – has ventured into diverse commercial endeavours.

In a recent development, the association has launched a share sale initiative among its members to fund the establishment of a five-star hotel within the Sabrang Tourism Park project, currently under construction in Teknaf Upazila of Cox's Bazar.

In addition, another five-star hotel project in Khulna is nearing completion.

The BASA has plans to build five-star hotels, dormitories, administrative centres, and resorts in each district across the country. These initiatives are aimed at generating substantial income for the association's members.

On 29 October, BASA President Md Mostafa Kamal, who is senior secretary of the Ministry of Shipping, penned a letter to all secretaries, divisional commissioners, and deputy commissioners, seeking their support in promoting the sale of shares for the proposed hotel at Sabrang Park.

On receiving the letter, these high-ranking officials urged BCS administration cadre officers within their respective departments to actively participate in the share sale drive.

In his letter, the BASA president highlighted the development of Sabrang Tourism Park, a sprawling 1,000-acre project spearheaded by the Bangladesh Economic Zones Authority (Beza). 

Within this expansive park, Beza has allocated 10 acres of land to the BASA for the construction of the hotel. The project has already gained traction, with a significant portion of shares sold. 

To complete the project's funding requirements, an additional 3,000 shares need to be subscribed. Each share is valued at Tk50,000, and BASA members can invest in a minimum of three and a maximum of 20 shares, the letter mentioned.

Why build a hotel at Sabrang Park?

Sabrang Tourism Park is expected to draw tourists with its array of world-class amenities, promising them an unforgettable experience. 

The park will feature a cutting-edge international entertainment centre, an immersive eco-tourism zone, an exhilarating marine park, and a challenging golf course. 

Conveniently connected to the Marine Drive, an 80km road from Cox's Bazar to Teknaf along the Bay of Bengal, the park offers easy access to the region's captivating attractions. 

The Khulna hotel

Prior to the Sabrang Park hotel project, the BASA embarked on another initiative to construct a luxurious administrative convention centre along Shamsur Rahman Road under the Khulna City Corporation. This centre, essentially a five-star hotel, will comprise a 12-storey commercial building adorned with 66 lavish bedrooms.

The hotel is being constructed by the Khulna Divisional Commissioner's office under the Ministry of Public Administration. Upon its completion next year, this establishment will be handed over to the BASA.

The project's construction costs, amounting to Tk159 crore, are being fully funded by the government. The government has provided 0.6096 acres of land for the building's construction at a nominal price. 

Despite being built with government funds, the project's profits will not go to the government exchequer, said sources at the ministry.

However, Mohammed Mezbah Uddin Chowdhury, senior secretary of the Ministry of Public Administration, told The Business Standard that a portion of the hotel's revenue will be allocated to the government exchequer.

Is there any conflict of interest?

The Government Servants (Conduct) Rules, 1979, outline specific guidelines for government employees engaging in business activities beyond their official duties. 

These rules mandate that government servants seek prior permission from the government before undertaking any private business ventures, including borrowing or lending money on interest, working part-time, or handing over government documents or information to others. 

However, the rules do not explicitly address business activities conducted through an association.

Several government employees' organisations have diversified their operations, venturing into various businesses, including luxury hotels, commercial buildings, banks, consumer goods, and other ventures.

Allegations of government officials engaging in business outside their official duties have intensified, particularly during the pandemic. In response, the Cabinet Division issued a directive in April 2021, urging ministries to take action against officials violating these regulations.

A former cabinet secretary, on condition of anonymity, told TBS that there might be a potential conflict of interest when government officials engage in business activities.

However, Dr Iftekharuzaman, executive director of Transparency International Bangladesh (TIB), said he does not see anything wrong with such businesses. 

He told TBS, "It may be debatable from ethical perspectives, but in a context where profit-making entrepreneurship by their peers in other services like defence and law enforcement agencies have been normalised, it is no surprise that the BCS officers' association have followed suit.

"Public expectation would be that they [BASA] do so on the basis of full legal authority and ensure corporate transparency and integrity."

When and why was BASA established?

Founded in 1981, the BASA is a non-political organisation committed to the professional and personal growth of its members. It fosters camaraderie, promotes ethical conduct, safeguards members' rights, and encourages their contributions to national development.

In addition to its professional development initiatives, the BASA also prioritises the social well-being of its members. 

The association has already established and operates a network of approximately 50 schools across the country through the Bangladesh Institute of Administration and Management (Biam) Foundation, an autonomous state business institute.