Non-compliant trade bodies
Tuesday, 14 December 2010
A representative trade body, be it a chamber or an association, has to work for promotion and protection of interests of its members, while complying with the laws of the land, particularly the ones that concern it most. Unfortunately, that has not been the case with a good number of trade bodies. According to a report published in the Financial Express last Saturday, a significant number of such chambers and trade associations have been violating trade rules in relation to holding of their annual general meetings (AGMs) and elections and submission of annual audit reports regularly to the government office concerned.
Such irregularities, as confirmed by the head of the official regulatory agency for chambers and trade associations, do not demonstrate respect for moral and legal requirements on the part of individuals who otherwise represent the people engaged in various segments of trade and commerce. It is expected that all chambers and business associations would follow their respective articles of association duly approved by the official agency concerned, hold annual general meetings and elections and submit their audit reports to the appropriate authorities within a stipulated timeframe. Any deviation from such legal and other standard requirements does not only deprive the members of the trade bodies concerned of the right to elect their representatives on a regular basis but also create a sense of alienation among them.
Since a good number of trade bodies have not been complying with the legal requirements, in terms of their operations, those who are posing themselves as leaders of such bodies can hardly claim themselves as the real representatives of their members. There are some associations where elections have not been held for more than two decades and some unelected people there are identifying themselves as their leaders. And a few of them are even representing as directors in the country's apex trade body and, at times, attending meetings with top government functionaries on trade and other issues. Besides, some trade bodies wield certain power, in terms of issuance of certificate of origin for export products and utilization documents of materials under bonded warehouse and some trade-related matters. Thus, leaders of an officially-recognised trade body do enjoy certain clout and influence both in social and administrative circles.
Surprisingly, neither the office of Director of Trade Organisations (DTO) nor the Apex chamber body has ever looked into the issue with due seriousness and has hardly taken necessary corrective measures. The DTO says it is aware of the irregularities but could not initiate actions for the shortage of manpower -- a very common complaint made by most official regulatory agencies. In fact, the policy-makers should look into the deficiencies of the regulatory agencies, both in terms of legislation and physical capacities, and try to overcome the same with a view to making them truly functional. Otherwise, the so-called trade body representatives, along with elected ones, will continue to exert influence and rub their shoulders with people who matter in the administration while flouting the norms, standards and rules that they are expected to abide by, in order to encourage their members to do the same and, thus, to follow the rules of the game in their normal business. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) should also see to it that chambers and associations are represented only by the elected people who are complying with all the legal provisions that are mandatory for them to comply with.
Such irregularities, as confirmed by the head of the official regulatory agency for chambers and trade associations, do not demonstrate respect for moral and legal requirements on the part of individuals who otherwise represent the people engaged in various segments of trade and commerce. It is expected that all chambers and business associations would follow their respective articles of association duly approved by the official agency concerned, hold annual general meetings and elections and submit their audit reports to the appropriate authorities within a stipulated timeframe. Any deviation from such legal and other standard requirements does not only deprive the members of the trade bodies concerned of the right to elect their representatives on a regular basis but also create a sense of alienation among them.
Since a good number of trade bodies have not been complying with the legal requirements, in terms of their operations, those who are posing themselves as leaders of such bodies can hardly claim themselves as the real representatives of their members. There are some associations where elections have not been held for more than two decades and some unelected people there are identifying themselves as their leaders. And a few of them are even representing as directors in the country's apex trade body and, at times, attending meetings with top government functionaries on trade and other issues. Besides, some trade bodies wield certain power, in terms of issuance of certificate of origin for export products and utilization documents of materials under bonded warehouse and some trade-related matters. Thus, leaders of an officially-recognised trade body do enjoy certain clout and influence both in social and administrative circles.
Surprisingly, neither the office of Director of Trade Organisations (DTO) nor the Apex chamber body has ever looked into the issue with due seriousness and has hardly taken necessary corrective measures. The DTO says it is aware of the irregularities but could not initiate actions for the shortage of manpower -- a very common complaint made by most official regulatory agencies. In fact, the policy-makers should look into the deficiencies of the regulatory agencies, both in terms of legislation and physical capacities, and try to overcome the same with a view to making them truly functional. Otherwise, the so-called trade body representatives, along with elected ones, will continue to exert influence and rub their shoulders with people who matter in the administration while flouting the norms, standards and rules that they are expected to abide by, in order to encourage their members to do the same and, thus, to follow the rules of the game in their normal business. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) should also see to it that chambers and associations are represented only by the elected people who are complying with all the legal provisions that are mandatory for them to comply with.