RMG’s entire supply chain corrupt: TIB

Complaint cells, business ethics must rule

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Staff Reporter :Irregularities and corruption have engulfed the entire procedure of supply chain in readymade garment (RMG) sector, said a Transparency International Bangladesh (TIB) study on Thursday. “Corruption in the apparel industry has taken an institutional shape mainly due to lack of transparency, accountability and good governance,” Dr Iftekharuzzaman, Executive Director of TIB, said.He was talking to journalists at a press conference in TIB’s Dhanmondi office to share the findings of the social movement against corruption’s latest research on the sector, titled “RMG Sector: Problems of Good Governance and Way Forward”. Senior programme manager Shahjada Akram and associate programme manager Nazmul Huda Mian presented the study. Bangladesh and Germany chapters of the Transparency International (TI) jointly conducted the study. The survey was done between November, 2014 and April, 2015.  “Irregularities and corruption are taking place at 16 different stages involving work orders, production and supply in the country’s RMG sector,” he said.The study said the highest level of corruption takes place at the production stage followed by work orders and delivery of products.According to the study, in some cases, the factory owners in exchange of kickback manage compliance examiners to make positive report in favour of their industries. On the other hand, the owners of small industries, who can not manage proper papers and documents, through bribe, make an arrangement to give subcontract to some units of merchandiser, the study found.  “All most all irregularities and corruption are taking place in the form of bribes, fake documents, purchase of products at low prices compromising the quality and import of increased volumes of raw materials for sale in the open market,” the study was quoted as saying. Apart from these, working hours of workers are manipulated by maintaining different attendance books, while buyers citing the excuse that the demand for the products has fallen in their respective markets also cancel work orders.Many international buyers, for their part, are giving orders to non-compliant factories in exchange of underhand dealings or commissions, the study said.The TIB made some recommendations, including establishment of a complaint cell, so that labour rights and business ethics can be ensured, necessary measures can be taken against the errant companies and a fair auditing system can be introduced.

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