Govt agencies run into graft at every stage of RMG business

The readymade garment (RMG) sector lacks good governance as the relevant government agencies and a section of owners, buyers and workers' representatives are involved in corrupt practices at every stage of the business, the Transparency International Bangladesh (TIB) said in a report released Thursday.
The latest TIB report has revealed that an entrepreneur has to pay kickbacks ranging between Tk 0.7 million and Tk 2.0 million to 17 state-owned agencies or departments for obtaining different services and certificates before setting up a new apparel factory.
The state-operated institutions include the Directorate of Labour, Department of Factory Inspections, Fire Service and Civil Defence, Department of Environment, Rajdhani Unnayan Katripakkha, Board of Investment, Customs and Excises, utility service providers, city corporations, municipalities and unions, Registrar of Joint Stock Companies and Firms, and the National Board of Revenue.
Launching the report on "Readymade Garment (RMG) Sector: Problems of Good Governance and the Way Forward," the local chapter of the Berlin-based Transparency International (TI) also suggested creation of a separate ministry for the US$ 21 billion industry.
 "We must pay immediate attention to the issues for sustainable growth of the sector as revival of the GSP (Generalised System of Preferences) highly depends on the developments here," TIB Executive Director Dr Iftekharuzzaman said at the report launching in the city.
He said workplace safety and rights had not been ensured even after providing different types of incentives and facilities by the government to the industry players.
He said apparel sector workers were unable to enjoy their rights mostly because of an unholy alliance among the owners and a section of local politicians who got involved in the business by trading in 'jhut' or garment waste and entering contracts for supplying foods and providing transport services for the workers.
TIB Chairperson Advocate Sultana Kamal termed RMG the country's most important sector in terms of export earnings, employment generation and women's empowerment, saying that contribution of the sector to the GDP (gross domestic product) stood at 10 per cent and it would be 14 per cent, if the backward linkages were included.
"So, it is our duty to protect the sector from the risk factors. There's no alternative to bringing to justice those who resort to different irregularities in the sector. If we don't show the courage now to overcome the challenge, a large-scale disaster may take place in the RMG sector anytime in the days to come," she said.
She said there was a lack of coordination among the relevant state agencies. She suggested creation of a separate ministry for the RMG sector to facilitate supervision and implementation of long-term plans.
Presenting the report, Sharif Ahmed Chowdhury, deputy programme manager of TIB's policy and research wing, said garment makers had directly intervened in related government policies, as 10 per cent of the parliamentarians come from the apparel sector.  
He said many international buyers, who sourced garment products from here, did not raise their objections even after being informed that the products were made at non-compliant factories.
He said manufacturers in league with representatives of some buying houses in some cases created an artificial compliance atmosphere to earn satisfaction of compliance auditors.
The TIB report also placed a 25-point recommendation for ensuring workers' safety and rights, good governance, transparency and accountability in the sector. The recommendations includes necessary changes in the existing labour law in line with the sections 29, 87, 98 and 105 of the ILO (International Labour Organisation) convention, exemplary punishment to owners violating laws, no apparel makers will be allowed on the parliamentary standing committee, introduction of uniform codes of conduct.
It also suggested ensuring gender codes of conduct, establishing transparency in the registration process allowing trade unions, formation of a central welfare fund for workers with contribution from both owners and buyers and ensuring trade union free from intervention of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the political parties.