NBR's intelligence wing is investigating the matter and primary findings show that about 30 apparel firms are guilty of abusing the facilities in collusion with a section of corrupt bank officials.

NBR sources said the firms violated Bangladesh Bank's Foreign Exchange Circular no 9 enforced in March 2001 which says the firms that are entitled to bond facilities in export will not be allowed to receive cash incentives.

But the suspected firms received a large amount from the government as cash incentives despite their entitlement to bond facilities.

The firms received the cash incentives by submitting concocted export documents with the help of bank officials, a NBR high official said.

NBR had initiated an investigation last month and asked all the 43 privatized commercial banks (PCB) to provide documents in this connection.

But only 13 banks provided information revealing that 20 apparel manufacturers misappropriated cash incentives of about Tk 17 crore.

The government allows 5.0 percent cash incentive to any cent percent export-oriented RMG and knitwear manufacturer.

Thirty out of the 43 PCBs did not submit any report in this connection despite NBR's repeated requests.

Most of the banks sought more time yesterday when NBR again requested the banks over telephone to submit the required documents, sources said.

NBR Chairman Khairuzzaman Chowdhury said the misappropriated amount will be about Tk 100 crore and the people involved must return the money to the government.

Meanwhile, the Ministry of Commerce in a meeting Sunday decided to investigate the matter.

The ministry will sit again with the officials of the NBR, finance ministry and Bangladesh Bank on March 29 to come to a decision about the misappropriation.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Sunday sat in a meeting to review the scandal.

BKMEA President Fazlul Haque said knitwear manufacturers did not use bond facilities for the particular consignments for which they received cash incentives.

NBR officials are trying to misinterpret the BB circular to prove some of the knitwear firms guilty of receiving cash incentives inappropriately, he added.

Abdus Salam Murshedy, acting president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA) said they will support any initiative taken by any agency for the betterment of the sector.

He said the woven sector do not receive cash incentives, the incentives go to the knitwear sector and textile millers who have composite units.

The government each year provides about Tk 700 crore as cash incentives to the export sector.

Readymade garment sector gets the highest cash incentive followed by vegetable, raw jute, and some other agricultural products.

Donor agencies always put pressure on the government to decrease cash incentives to the export sector and the government is also contemplating alternative export incentives other than cash.