FBCCI polls set for April, with inclusion of nominated directors unresolved

Highlights

• Polls schedule to be announced by 11 February
• After power changeover FBCCI president resigned
• Govt on 11 September appointed an administrator
• There are 80 directors on FBCCI board
• Of the directors, 34 are nominated

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country's apex trade body, is set to hold its elections in late April, according to its government-appointed administrator, Md Hafizur Rahman.

Hafizur told TBS yesterday that a draft schedule for the elections has been prepared and the final schedule will be announced by 11 February.

It has been reported that the inclusion of nominated directors in the FBCCI board remains unresolved. A draft of the trade organisation regulations has been prepared under the existing laws. 

Among businesspeople, there are opposing arguments regarding the inclusion of nominated directors. The draft regulations do not include provisions for nominated directors. 

The Ministry of Commerce will hold multiple meetings with stakeholders during the finalisation of the draft to decide whether the practice of having nominated directors will be retained.

After the fall of the Sheikh Hasina government on 5 August, the president of FBCCI resigned. Later, on 11 September, the government appointed an administrator to the organisation for 120 days. 

However, due to plans to issue the draft regulations and organise elections, it was not possible to hold the election within the stipulated time. As a result, the commerce ministry extended the administrator's tenure by another 120 days.

According to the draft regulation, no individual can be elected to the same position in a trade organisation more than twice consecutively. 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.

Former FBCCI president Md Jashim Uddin told this newspaper that it is crucial to hold the FBCCI election promptly. 

He emphasised that without the representation of businesspeople in the apex body, opportunities for dialogue with the government on various business and investment issues do not arise. 

Jashim added that there should be a spontaneous election with the participation of genuine businesspeople.

"If nominated directors are included in the FBCCI Board of Directors, inequalities will persist as before. Therefore, instead of maintaining the practice of nominated directors, appointing directors based on clusters could be more effective. This approach would also ensure the participation of all sectors," he said.

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 the Hasina 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.

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 the Bangladesh Garment Manufacturers and Exporters Association, the Bangladesh Knitwear Manufacturers and Exporters Association, the Dhaka Chamber of Commerce and Industry, and the Metropolitan Chamber of Commerce and Industry, Dhaka, 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.