Ctg RMG owners accuse BGMEA administrator of conducting activities in violation of regulations

Garment industry owners in Chattogram have accused the administrator of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) of not being run according to the Trade Organisations Act, regulations, and constitution.

After the elected council of the organisation was dissolved, the appointed administrator has been operating the organisation in violation of the law, they said.

Members from the Chattogram region of the organisation have requested the BGMEA administrator to refrain from activities beyond his jurisdiction.

On 2 January, former first vice-president of BGMEA SM Nurul Haque urged Administrator Md Anwar Hossain to cease such activities.

The BGMEA administrator's office received the letter on Saturday.

Former first vice-president of BGMEA SM Nurul Haque told TBS that an administrator can only manage or oversee a federation but cannot run a business-standard organisation like the BGMEA.

He said that in BGMEA's 35-year history, there has been no precedent for such a situation. Since taking on the role, the administrator has been implementing the agenda of a particular group, which is driving the garment sector into a deeper crisis.

The letter stated that on 24 October 2024, the administrator formed a 10-member "support committee" to assist in carrying out his responsibilities.

Following the advice of a particular group, and without any discussion or consultation, the committee was formed based on names provided by the group.

Addressing the BGMEA administrator, the letter stated that the administrator appointed the audit firm Huda Vasi Chowdhury & Co for BGMEA's Membership File Audit and Verification for an amount of Tk14,00,000.

The appointment of Huda Vasi did not follow the universally accepted open tender process, which violates DTO Rules and the organisation's own constitution and memorandum of association, it added.

The administrator does not have the authority to make such an appointment. This is nothing but a waste of money. The administrator finalised this based on a proposal and the name provided by a member of the administrator's support committee, it said.

Despite receiving and acknowledging a legal notice dated 25 November 2024 and a certification dated 28 December 2024, signed by lawyer AM Mahbub Uddin Khokon, a senior lawyer of the Bangladesh Supreme Court and the current president of the Supreme Court Bar, the administrator has not suspended his irregular activities, which is a violation of the law, it added.

The letter further mentioned that despite BGMEA having its legal adviser, the administrator violated regulations and wasted Tk8,00,000 by appointing a law firm for legal consultation. Through this action, the administrator has caused financial loss to BGMEA and engaged in unlawful activities.

The letter questioned why the administrator appointed another law firm despite having an in-house legal adviser.

Accusing the administrator of operating BGMEA in violation of the rules, the letter emphasised that BGMEA is a strong trade organisation registered under the Ministry of Commerce. It is governed by the Trade Organisations Act 2022, the Trade Organisation Rules 1994, and the organisation's constitution and memorandum of association.

However, the administrator's actions appear to be contrary to this, as it seems to us. Membership renewal is an ongoing process that takes place throughout the year. Setting a deadline of 31 January is not reasonable in any way. The letter requested the BGMEA administrator to refrain from all irregular activities.

Attempts were made to contact BGMEA administrator Md Anwar Hossain multiple times via telephone to inquire about the letter, but he did not respond.