A Transparency Internati-onal Bangladesh (TIB) report released in Dhaka on January 14, 2016 alleges that grafts are galore in the Bangladesh readymade garment (RMG) sector supply chain. The report is based on a joint survey of the Bangladesh and German Chapters of Transparency International. However, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) trashed the TIB report. It said on January 15, 2016, “We strongly reject this report because it is a baseless, motivated report because it is not rational to make comments on an industry of millions of workers, entrepreneurs and buyers based on the interview of only 74 people”. The BGMEA said that TIB has prepared such a negative report at a time when the RMG sector surpassed its export target in the first six months of the current fiscal 2015-2016 overcoming the negative impact of Rana Plaza, Tajrin Plaza accidents and political unrest. “We did not expect such a report at this time. It will hinder the progress of the sector”, it added. It said the country is progressing fast now and the government intends to raise the export earnings to US$60 billion as part of its plan to attain middle income country status by 2021. The BGMEA has planned to increase export earnings to US$50billion to supplement the government’s plan. Industry insiders said, some US$15 billions are expected to come from the sector when Bangladesh will achieve US$ 50 billion export by 2021. The TIB alleged that widespread corruption and irregularities take place in RMG trade in connivance with the producers, buyers, merchandisers, compliance auditors and other people involved in the process. It was alleged that compliance auditors accept bribes and change the compliance report. On the other hand, buyers and merchandisers accept the changed compliance report in exchange of monetary and other unethical benefits. The study report said, “Bribes are offered to cover up the lapses in quality and quantity of products and in compliance… Irregularities and corruption have been a regular phenomenon in the entire supply chain”. The joint survey report lauded Bangladesh’s efforts to attain the compliance standard and added that around 60 per cent compliance standard was attained and the rest of the target of compliance has to be attained as early as possible. The joint survey report pointed out that cooperation between the European Union retailer’s alliance Accord and the North American retailers Alliance is poor which causes delay in the remediation works in different RMG factories. It alleged that violation of labour rights, working conditions and safety issues are sometimes ignored because of financial benefits. The joint survey report also found that buyers in the manufacturing process changed the design and forced the producer to accept their demand, otherwise they threatened to cancel the order. After the products landed at its port of destination, buyers refused to accept the consignment on flimsy ground and forced the producer to reduce the price. Sub-contracting system is generally prohibited. But in some cases with the consent of the buyers or merchandisers, sub-contracting orders may be placed in another compliance factory. But it also appeared from the survey that factories having no valid papers of compliance are obtaining sub-contracts in exchange of bribe. The booties are divided among the big RMG owners, buyers, and merchandisers. The opinion of 74 people, which included producers, buyers, merchandisers, auditors, inspectors and garment workers were taken before preparing the report. It was also alleged that the compliance auditors and the factory inspectors demand money to give positive report. The RMG owners meet such unethical demands without any protest. The TIB, however, refused to disclose the names of the persons they talked to or even disclose the quantum of money given as bribes. To wipe out corruption and other irregularities the TIB suggested a 13-point action plan. One of the recommendations is to create an arbitration centre to address the corruption allegation. Another recommendation is that buyers should conduct inspection without prior announcement. A model agreement addressing all issues of production and buying process was also suggested. The TIB presented the study report titled “The role of stakeholders in tackling irregularities and corruption in supply chain of RMG sector”. The global civil society organisation said from its local office at Dhaka that it has identified corruption at 16 stages of three layers in the supply chain of the country’s largest foreign exchange earner. It said the three layers where corruption took place are: work order issuance, production, and supply. It further said, the study was based on information available from November, 2014 to April, 2015. According to the study, the bribe-prone stages include communication between brands/importers and local agents/buying houses, contact with compliance factories, work order issuance, price fixation/bargain, orders for samples, back-to-back LC opening against master LC, purchase/import of raw materials, product and factory inspection, quality inspection at pre-shipment level and at shipment level. The TIB said, “Everyone will have to work for further advancement of this sector though it has attained a 60 per cent growth. The growth rate will increase if few more steps are taken to prevent the irregularities and corruption”. Explaining the 60 per cent progress being claimed, TIB said a survey in 2013 had revealed administrative shortcomings in 63 spheres. But the situation had improved because of 102 initiatives taken by the government, factory owners and buyers. Although government officials are usually blamed for irregularities and corruption, the TIB, in this research, highlighted the wrongdoings of others as well. The TIB said, “Everyone is involved in irregularities in lesser or larger measure. It is unfair to pull up government officials only. Buyers, agents, and other linked to this sector cannot shrug off their responsibility”. The government has, however, taken the side of the BGMEA and on January 16, 2016 dismissing the TIB report as “false, motivated and imaginary”. The Ministry of Commerce said , “TIB is trying to harm the country’s RMG industry by presenting untrue, imaginary and motivated information”. The Commerce Ministry made the remark at the closing ceremony of the four-day seventh international garments accessories and packaging exposition titled “GAPEXPO-2016” in Dhaka. It said the TIB is carrying out a negative campaign intentionally and “in a much planned way” so that foreigners and foreign buyers get a negative perception about Bangladesh and its RMG industry. The commerce ministry argues that the Accord and Alliance regularly inspect the RMG factories and the foreign diplomats stationed in Dhaka also expressed satisfaction over the progress made in the RMG sector. It praised the RMG as a rising industry. Nevertheless, the relevant authorities should take the matter seriously and TIB’s findings should be proved wrong through proper and objective investigations into the allegations.
