Monira Munni
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has issued a warning to its member factories, asking them to refrain from conducting any business dealings with a specific foreign company, namely Hapa Fashion Pvt Ltd.
In a circular, the trade body alleged that the company has issued faulty letter of credit (L/C) or work orders to some members, forcing them to purchase essential fabrics, accessories, yarn and other raw materials exclusively from its designated suppliers.
"Local exporters faced difficulties exporting goods timely as the nominated suppliers did not supply goods on time," read the BGMEA circular issued on May 30, adding that it has received complaints from three of its members.
The circular also mentioned the names of the companies that lodged complaints with the BGMEA.
The trade body also said that Hapa Fashion even did not comply with the decision its arbitration tribunal made in presence of both the parties.
The company's country manager has also been dillydallying in paying the dues to the BGMEA members, it said.
As a result, local exporters have suffered financial losses and other difficulties, including re-exporting of goods, which tarnished their business image, the BGEMA said, advising its members against doing business with the company.
The individual factories would bear liability for any future crises that may arise if they choose to engage in business with Hapa Fashion, it warned.
When contacted, Hapa Fashion Country Manager Jay Kumar claimed that they have cleared all the payments.
"Factories want to extract extra money and the BGMEA is favouring them," he alleged.
Terming the claims made by the three factories -- James Design, Famous Design and Masud Apparel -- 'baseless and unjustified', Hapa Fashion in a letter to BGMEA vice president Md Shahidullah Azim said that true and actual facts were never heard or considered.
"…we should not be responsible for the factories' delays, inefficiencies of poor production planning, incompetence and taking the orders for granted," it said in the letter on April 13.
Talking to the FE, BGMEA vice president Mr Azim on Saturday said the company's claims are not correct and it is yet to make full payments to the factories, despite making repeated commitments.
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