A parliamentary watchdog on Sunday asked the government to take measures to stop immediately what it said "illegal" banking by a number of companies in the name of Multi Level Marketing as fear goes high that a large number of the clients might be cheated.

The parliamentary standing committee on the ministry of commerce at a meeting also decided to write letters to the governor of Bangladesh Bank, the banking regulator, and the Finance Minister, asking them to prevent banking transaction by the MLM companies, including that of by the Destiny Group.

The matter came for discussion on the heels of media reports that Destiny Group was doing illegal banking, taking advantage of lack of specific legislation and lax implementation of existing banking laws.

Presided over by ABM Abul Kashem, the chairman of the committee, the meeting asked the commerce ministry to prepare a bill for placement on House table to prevent such illegal activities.

Former commerce minister Muhammad Faruk Khan had last year said that a draft was prepared to formulate a law to monitor the MLM companies. But no significant development followed.

Sunday's meeting was important as a huge number of clients have paid millions of taka to various MLM companies and media reports hinted that Some companies might cheat on the clients, simply by disappearing.

“A total of 17 MLM companies are in operation in the country,” Abul Kashem told reporters after the meeting at a parliament briefing room. He also said that some companies are accused of siphoning off money abroad.

The meeting also discussed similar problems involving a number of companies that have been using websites to lure innocent people.

Attended among others by committee members Tahura Ali, Md Abul Kashem, Rumana Ahmed and Sheikh Afil Uddin, the meeting expressed concern over the price hike of edible oil and eggs.

The meeting asked the commerce ministry to look into the price hike of these essential commodities and take measures to bring down their prices.

The committee also wanted to know if the government was prepared to hoard some commodities ahead of the Muslim holy month Ramadan.

It asked the government to keep prices of 16 essential commodities, including soybean, palm oil, sugar, rice, pulse, wheat, potato, onion, garlic, zinger, slat and powdered milk, within the commoners reach.

The Independent/Bangladesh/ 2nd April 2012