Corruption and greed of public and private organisations, and buyers have doomed the RMG industry, the country’s mainstay of the economy, said a new report of Transparency International of Bangladesh (TIB).
The report revealed that irregularities are rampant in 17 public organisations as an owner has to pay additional from Tk700,000 to Tk2m at different stages of the organisations for setting up a new factory.
Factory owners make windfall profit by abusing political power and overlooking workers rights, which play a catalyst for occurring industrial tragedies like Rana Plaza collapse that killed more than 1,100 people in April this year, it said.
Buyers could not also avoid their responsibilities for disasters in the apparel industry as they knowingly keep their eyes shut for financial gains, said the report.
The report on “RMG sector: problems of good governance and way forward” was prepared by taking interviews of stakeholders, experts and workers, and based on published reports in different print and electronic media. Information and statistics were collected between the period of June and October this year.
“Corruption, greed and irregularities ruin the RMG industry,” said TIB Executive Director Iftekharuzzaman, releasing the report in Dhaka yesterday.
To prevent recurrence of such incidents like Rana Plaza and Tazreen Fashion fire, people those involved in corruption in the RMG industry should be brought to justice, he said.
TIB Chairman Sultana Kamal said those tragedies are not the accident as it continues to occur in the country and lack of accountability, sensitivity and poor governance are the result of disasters.
“Nobody, whoever he or she is, should be spared,” she said, adding that all have been trying to blame each other to avoid their respective responsibilities.
According to the report, factory owner is involved with technical and social compliance issues, including construction of building without code of conduct, inadequate safety measures, not allowing receipt of wages, forcing workers to sign in sacked letter in a preplanned way and dismissing pregnant workers.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) plays role as a regulator but its main role is to protect the interest of factory owners and workers.
Absence of transparency in audit report of the association, giving complaint certificate to a non-complaint factory, misuse of buyer’s compensation fund, bribing labour leaders to suppress workers’ demands are the salient features of corruption.
As 10% parliamentary members are involved with the apparel businesses, they influence on formulating any policy. “So, any policy related to the RMG is made for protecting the interest of owners, not for workers,” said Sultana Kamal.
The TIB report says introduction of Apparel Board and Apparel Bill are yet to see the light and tax at source is reduced to 0.8% from 1.2% because of political clout.
Buyers have the vital role to ensure safe working place and workers’ rights, which is mandatory in the international level. But here in many cases, factory owners in league with buyers’ representative arrange complaint environment to satisfy complaint auditor and buyers delays payment showing excuses and even do not pay, according to the report.
In the amended labour law, it spotted many flaws, including absence of adequate punishment, insufficient compensation for victims and difficult condition for trade union formation.
Factory and establishment department are beset with corruption, irregularities and many more malpractices as it has inadequate administrative infrastructure as only 56 out of approved 103 inspectors are active, hampering to oversee such an important industry.
The report also mentioned that officials have allegedly given registration, renewal and floor set up certificates in exchange of money without visiting the spot. In many cases, no legal action is taken because of social, political and economic power of the factory owners, it said.
It said a factory owner has to bribe on an average minimum Tk124,354 in eight stages to the Rajdhani Unnayan Kartripakkha ( RAJUK) officials to get land use approval.
About trade union, it said, leaders are not elected democratically as number of leadership position is limited to 40-50 people. Trade union was formed under political consideration.