Primark may pay rest of Tk 30cr to Rana Plaza victims this month

Staff Correspondent

British retailer Primark is likely to disburse over Tk 30 crore to the Rana Plaza victims by this month to complete disbursement of Tk 113 crore in compensation it committed.
The company earlier disbursed around Tk 83 crore to the victims of the deadliest factory disaster in the country.
Primark through its liaison office in Dhaka, ABE Investments Plc, on Sunday filed an application to the labour ministry seeking approval for the receipt and disbursement of its pledged fund amounting to Tk 113.43 crore.
Labour secretary Mikail Shipar told New Age that the British company had sought approval for disbursement of Tk 113.43 crore with a retrospective effect for approval of Tk 83 crore it disbursed earlier.
‘Before disbursement of rest of the amount of around Tk 30 crore Primark sought government approval of its total promised amount according to the law,’ he said.
Earlier, Primark announced a programme to provide appropriate long-term compensation and support services for 580 workers, or their dependants, of its supplier, New Wave Bottoms, equivalent to $11million or around Tk 88 crore.
New Wave Bottoms was one of the five garment factories housed in Rana Plaza at Savar, which was collapsed in April 2013 killing around 1,134 people, mostly workers.
Primark paid $2 million or around Tk 16 crore as short-term financial assistance to 3,639 workers of the five garment factories and their families, equivalent to nine months’ salary.
The retailer also paid $1 million or around Tk 8 crore to Rana Plaza Donors Trust Fund, led by the International Labour Organisation. Victims of all garment factories are supposed to get compensation from the Donors Trust Fund.
Roy Ramesh Chandra, a member of Rana Plaza Donors Trust Fund, said Primark started its payment in March 2014 and it was supposed to complete it by March 2015 before the second anniversary of the disaster that took place on April 24 2013.
A number of global buyers and the Bangladesh government paid around $21 million to the donors’ fund, which still remains short of downsized target of $30 million of ILO.
As some global buyers have not showed any interest to give money to the donors’ fund ILO cut the original target of $40 million to $30 million.

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