TIB study: RMG sector filled with irregularities

rmg

A study revealed by the Transparency International, Bangladesh (TIB), has shown widespread irregularities in the country’s largest foreign exchange earner.

In a press conference on Thursday, TIB said that it was able to identify corruption at 16 stages of three layers in the supply chain of the ready-made garments sector.

According to TIB Executive Director Iftekharuzzaman, the three layers where corruption took place are work order issuance, production and supply.

The study report titled ‘The role of stakeholders in tackling irregularities and corruption in supply chain of RMG sector’ was presented TIB’s Shahjada M Akram, Nazmul Huda Mina and Nina Shamunnahar

The report talks about the use of bribes on covering up for the lapses in quality and quantity of products and in compliance. It talks about how corruption is a regular phenomenon in the entire supply chain.

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 shipment.

Iftekharuzzaman also said that a collaborative effort is required to make further advancements in the RMG sector even though it has attained a 60% growth rate.

Source: Ittefaq