Foreign buyers exploiting RMG suppliers
some buyers out to jack
up profits by terming
consignments non-compliant, finds a TIB research
A Transparency International Bangladesh (TIB) research report yesterday said that numerous foreign buyers of readymade garments (RMG) are exploiting Bangladeshi suppliers by first buying products from them and later terming them as non-compliant. TIB, at a press conference at its headquarters in the capital, shared findings of research on The role of stakeholders in preventing irregularities and corruption prevailing in the supply chain of the RMG sector. The research was conducted by the TIB team comprising Nazmul Huda Mina, Assistant Programme Manager; Nina Shamsur Rahman, Deputy Programme Manager; and Shahjada M. Akram, Senior Programme Manager. The trio is from TIBs Policy and Research Department.
Speaking on the occasion, TIB Executive Director Dr Iftekharuzzaman said that they have found that some foreign buyers are in the practice of buying from non-compliant RMG factories to increase their profit. But when the product reaches their country, they create several reasons and excuses and ultimately deprive the suppliers by terming products non-compliant, he said and added that they are only exploiting suppliers to maximise their profit margins.
Asked about the exact number of foreign buyers doing this, Dr Iftekharuzzaman said that research conducted by the transparency watchdog is qualitative research and revealing the exact number is out of the scope of research work. It will be incorrect to quantify because it is out of our research scope. Our qualitative research however was done, maintaining international standards.
It may be noted that qualitative research is primarily exploratory research. It is used to gain understanding of underlying reasons, opinions, and motivations. On the other hand quantitative research is used to quantify the problem by way of generating numerical data or data that can be transformed into useable statistics.
Asked whether they plan to conduct quantitative research on the same issue, the TIB Executive Director replied, It is not that easy to work with statistics in this sector because it is very complex. So, we are not thinking about that now. We conducted our research work by interviewing 70 relevant persons from the sector, starting from buyers to top management to the lower rung to understand the whole supply chain scenario.
He said the research was conducted with support from Transparency International Germany as Europe is one of the most important buyers of RMG from Bangladesh and they want better insights into the current RMG scenario here.
Dr Iftekharuzzaman said that they see corruption and irregularities prevailing in almost all 16 steps of the supply chain management of RMG sector. He said that research showed corruption and malpractices prevailing at the order, production, inspection and supply stages of the entire supply chain. Many owners of factories also bribe inspectors for compliance certificate and give sub-contracts to other non-compliant factories.
TIB placed some suggestions including formation of a dispute cell by the Bangladesh Garments Manufacturer and Exporters Association (BGMEA), inspection of factories without setting prior appointment and taking legal action against factory owners who are engaged in such malpractices.
