* Employers have no respect for laborers:
ILO Conference: ITUC outraged at Employers attack on ILO system
The employers’ group today blocked discussion of some of the worst cases of worker rights violations at the annual ILO conference in Geneva. Since 1926, the conference has discussed the most serious cases included in the annual report of the ILO’s Committee of Experts, a 17-member committee of eminent and independent international jurists. This, year the International Organisation of Employers (IOE) has refused to discuss any cases.
Sharan Burrow, ITUC General Secretary, said “Employers at the ILO are trying to keep the worst abuses under wraps and avoid the international scrutiny which could help save lives and tackle some of the most appalling attacks on the rights of working people.
Last year, 29 trade unionists were murdered in Colombia, but employers don’t think the ILO should even discuss that, nor the terrible campaign of violence against trade unionists in Guatemala or Swaziland.
Egyptians are in the midst of a battle for their most basic rights to decent work, but employers seem to be siding with the military and fundamentalist forces both of which want to deprive workers of a voice.
The IOE has also refused to allow discussion of the withdrawal of collective bargaining rights in Greece and Spain, where plummeting incomes are worsening the country’s economic plight and other serious cases where decent labour laws are under attack. Employer organisations are playing a dangerous political game at the ILO, even as some individual companies are themselves increasingly prepared to discuss workers’ rights openly and frankly.
“The ILO was established on the basis of social justice and a commitment to respect for the rule of law as it applies to working people. The world’s most eminent labour law jurists have presented their findings to the ILO Conference, but the IOE is refusing to allow their findings to be examined,” said Sharan Burrow. read more.
19:07:53 local time CHINA
* Chinese textile firms to attend Rio+20 Conference:
Some of the leading private enterprises from China, including the Hong Kong-based textile company Esquel Group, will be participating in the China Going Green Dialogues, to be held as a part of the Rio+20 conference in Rio de Janeiro in Brazil this month.
Chinese NGOs working for protection of environment, the Shan Shui Conservation Centre, the Greenovation Hub and the SEE Foundation have together selected 21 private companies for participation at Rio+20 or the 2012 UN Conference on Sustainable Development, being held 20 years after the first UN Conference on the subject was held in 1992. read more.
* Q1 revenue surges 32.3% at Zuoan Fashion:
Zuoan Fashion Limited, a leading design-driven fashion casual menswear company in China, announced its financial results for the first quarter ended March 31, 2012.
First Quarter 2012 Financial Performance:
Revenue for the first quarter was RMB279.9 million ($44.5 million), a 32.3% increase from RMB211.5 million ($33.6 million) in the same period last year. The increase in revenue was driven by both distributor and direct store sales volume.
First quarter distributor sales increased 23.1% to RMB260.4 million compared to RMB211.5 million in the first quarter of 2011. First quarter 2012 self-operated direct store and flagship store sales were RMB19.6 million in the first quarter 2012.
18:07:53 local time VIET NAM
* DOC’s preliminary decision against Vietnamese hangers:
The US Department of Commerce (DOC) has preliminarily decided against steel garment hangers imported from Vietnam.
Accordingly, Vietnamese producers and exporters will receive anti subsidy countervailing duties (CVD) ranging from 11.03 to 21.25 percent on their steel garment hangers.
For instance, Haminco companies and Cao Quy companies will be imposed CVD of 21.25 and 11.03 percent respectively. All other Vietnamese producers and exporters will receive CVD of 16.14 percent.
Petitioners including the US producers M&B Metal Products Co Inc, Innovative Fabrication LLC/Indy Hanger, and US Hanger Co LLC. lodged their anti-dumping and anti-subsidy complaints on Vietnamese steel garment hangers at DOC and the US International Trade Commission (ITC) on December 29, 2011. DOC decided to conduct its investigation into the products on January 18, 2012.
DOC will announce its final decision on October 9, 2012.
If DOC and ITC confirm that Vietnam’s subsidized steel garment hangers have caused significant damages to the domestic industry, CVD will be imposed as from November 30, 2012.
Clothes hangers imported from Vietnam were estimated at US$31.9 million in 2011, US$28.9 million in 2010 and US$19.5 million in 2009.
to read in BUSINESS IN BRIEF 6/6.
* Garment makers struggle to make threads meet:
Domestic garment and textile makers are striving to survive amid the global economic turmoil, industry experts said.
Tran Dang Chuc, general director of Thien Nam Garment and Textile Company, said that in the last few weeks his company had not exported anything.
Chuc said Thien Nam, which has 18,000 workers, was receiving just a few orders each month. To reduce losses, he said the company had adjusted its prices to take into account changes in interest rates and the cost of raw materials.
Meanwhile, Nguyen An, general director of Garment Sai Gon, said his company’s traditional partners in Europe had significantly reduced imports.
An said export orders were down 30 per cent across the entire garment and textile sector. He added that small firms faced closure due to larger firms’ competitive advantage. He also said big exporters benefited from free on board (FOB) shipping, where the buyer or seller pays transport and loading costs. read more.
* Firms urged to exploit free trade deals:
Businesses should take full advantage of free trade agreement (FTA) preferences to expand their export markets and product portfolios, a meeting held in Ha Noi heard on Monday.
Statistics from the Ministry of Industry and Trade’s Import and Export Department showed that total export turnover through taking advantages of preferential tariffs from FTAs reached over US$5.5 billion in the first five months of this year, up 66 per cent over the same period last year. The ratio of exports to markets such as China, India and Laos remarkably increased. (…)
Deputy General Director of the Viet Nam Textile and Garment Group Hoang Ve Dung added that industry growth in the first five months dropped by almost 50 per cent over the corresponding period last year.
“Although this is often the most favourable time of the year for export, textile companies can hardly find new orders,” he said. read more.
18:07:53 local time LAOS
* Officials to hold talks on minimum wage:
Representatives from three official bodies are expected to meet tomorrow to seek solutions to recent minimum wage-related disputes, a senior government official said.
Although the Lao government’s announcement of an increase to the minimum wage from 348,000 kip to 626,000 kip per month came into force on January 1, many businesses have failed to comply with it, causing employees to petition the Lao Federation of Trade Unions.
Officials believe that most of the businesses that have infringed the regulation are garment factories. read more.
18:07:53 local time THAILAND
* Star Fashion to update menswear:
Star Fashion (2551) Co, the maker Hazard and Garbang men’s fashions, plans to rejuvenate its two menswear brands to prepare for more competition when the Asean Economic Community (AEC) is formed in 2015.
Executive director Vitoon Tatiyamaneekul said that although many menswear brands, both local and international, had been introduced in Thailand in recent years, demand for Garbang and Hazard products continued to grow year-by-year. (…)
According to a company survey, there are many fashion brands available in the Philippines and Singapore, but the majority are international. (…)
Mr Vitoon expects the fashion market in Thailand to grow by 15% this year, up from 12-13% last year. The footwear market alone is estimated to be worth about 10 billion baht per year.
The company plans to extend product lines. New shoe and bag brands include Tretorn from Sweden, Boxfresh, the British lifestyle shoe, and Herschel bags from Canada.
The company says sales will grow by 50% to 2.4 billion baht this year, up from 1.6 billion baht last year. Of the total, about half will come from apparel and fashion shoes. read more.
18:07:53 local time CAMBODIA
* Better worker food needed in Cambodia’s garment factories: Survey:
A new study has determined that cost and space are the biggest constraints to setting up canteens in Cambodia’s garment factories.
The findings were presented on Monday night at a cocktail party attended by Cambodia’s former ambassador to the US, Roland Eng, the Swedish Ambassador Anne Höglund, Garment Manufacturers Association in Cambodia Chairman Van Sou Ieng, Rami Sharaf of RMA Asia and many others.
Sandra D’Amico of HR Inc, who’s company BD link carried out the study, gave the presentation and spoke afterwards to explain the significance of the findings.
“Garment factory owners are very concerned about the nutrition and health of their workers. However they do not feel they should carry the burden of the cost,” D’Amico said. “However, factories lack information and understanding around professional food service providers like Hagar.” read more.
19:07:53 local time MALAYSIA
* Fewer jobs, higher prices likely with wage floor, survey shows:
With minimum wage enforced, employers may hire less or increase the prices of goods and services, according to a recent survey conducted by major local recruitment agency Jobstreet.
The federal government announced the first ever minimum wage policy for the country last month, setting a floor of RM900 for peninsular Malaysia and RM800 for Sabah and Sarawak, which it said will be enforced within the next six months to a year.
Southeast Asia’s top online job search firm said 44 per cent of 1,520 employers it surveyed last month said they disagreed with Putrajaya’s move, edging out the 33 per cent who agreed. The remaining 23 per cent wanted the status quo kept.
19:07:53 local time INDONESIA
* KARWELL sets tender offer at IDR127 per share:
PT Karwell Indonesia Tbk, a garment and textile company that recently changed its business purpose to maritime infrastructure and logistic services, has set the tender offer at IDR127 a share. read more.
* MARKET MOVING: 5 Industrial sectors most vulnerable to rupiah volatility:
The weakening of rupiah will hit industrial performance particularly textile, electronic, pharmaceutical, chemical, and automotive industry amid declining export due to European crisis.
Therefore, the government and monetary authorities need to maintain exchange rate stability. Such declining may push down the performance in those industries since they still rely on imported raw materials. read more.
* Trisula Internasional Kicks Off IPO:
Garment and textile company PT Trisula Internasional announces on prospectus today it plans to offer 300 million shares, representing 30% of its issued and paid-up capital, through the initial public offering (IPO).
The pre offering will start tomorrow (June 5) and last in June 7, 2012. While the offering is scheduled for June 19-21, 2012. Listing at stock exchange is set for June 28, 2012.
The company will also issue 75 million warrants as incentives. Each 4 shares will get one warrant. read more.
* No agreement on Indonesia-EU industry strengthening:
Indonesia and the European Union (EU) have yet to reach an agreement on building industrial strength between the two parties.
“The cooperation agreement must have mutual benefits; there must also be a consensus regarding building Indonesia`s and the European Union`s growing industrial sector,” remarked the Director General for International Industrial Cooperation of the Ministry of Industry, Agus Tjahajana, here on Sunday night.
According to Agus, the trade cooperation between ASEAN and China – embodied in the ASEAN-China Free Trade Agreement (ACFTA) – should be a lesson for Indonesia, because the agreement is more profitable for China, as a trading partner.
Meanwhile, the chairman of the Indonesian Textile Association (API), Ade Sudrajat Usman, said that the national textile sector is ready for and supports the imminent implementation of the EU-Indonesia cooperation.
“Our textile exports will rise significantly, and the agreement should be realised so that we won`t miss the moment,” Agus added. read more.
17:37:53 local time BURMA-MYANMAR
* Industry minister calls for trade union support:
As labour strikes increase in Rangoon, the Minister for Industry and Myanmar Investment Commission Chairman Soe Thein called for more support of trade unions and the protection of workers’ rights.
Speaking about the garment industry at a workshop on Sunday at the Chatrium Hotel in Rangoon, he said, “Form the trade unions, the sooner the better. I’d like to ask civil society and political parties to offer their help in forming these trade unions.”
Labour Minister Aung Kyi said at the workshop that more than 15,000 workers are now in labour negotiations with their employers over issues of wages and working conditions.
Minister Soe Thein said that as demand increases in the labour market, the workers’ position would be stronger as investments in Burma become stronger. He called on the Labour Ministry to do more for workers’ labour rights.
“We need labour officers to monitor the situation,” he said. “I’d like to suggest that the government appoint such officers. The Labour Ministry must monitor the labour affairs situation. read more.
* Factory announces compensation grant to protesters:
Papers were stuck in the compound of Hi Mo artificial hair factory and hostels, announcing “The striking workers could leave the job after taking salaries of three months or five months as compassionate grant”, according to the striking workers.
* Asean must protect migrant workers:
Aung San Suu Kyi’s goodwill visit to Thailand represents a beacon of hope to Myanmar’s alienated migrant workers, refugees, exiled activists and border-based ethnic groups.
Myanmar’s inclusion as a member of Asean celebrates its rapid transformation and acknowledges the need for progressive reform, free from overt discrimination, unfair treatment and fear of reprisals.
The junta illegally seized power and control in 1988. With no true justice, no rule of law, no independent judiciary, a brutal campaign of ethnic cleansing has been carried out against hapless minority victims, who have suffered egregious abuses including torture, rape, relocation and forced labour.
Suu Kyi’s meeting with Karen, Karenni, Arakan, Kachin and Shan minorities recalls the spirit of the Panlong Agreement which her father, national hero General Aung San, reached with ethnic groups in 1947. The “Angel of Mercy” inspires her fellow countrymen and -women with determination and courage awaiting return to civilian rule. Thailand has been a survival workplace for millions of Burmese labourers, who have significantly contributed toward advancing the Thai economy.
Unfortunately, many hard-working job-seekers – whose sole goal is to find legal employment to meet their own basic needs and to create better lives for themselves and their families – have become victims of extortion, human trafficking, smuggling brokers, corrupt immigration officials and outdated policies that deny civil rights and social-welfare protection, even though Thai laws cover everyone on Thai soil.
It’s time to start an earnest dialogue and to expand it to a fair, negotiated 10-way pact, under the auspices of Asean, to protect migrants intent on pursuing their dreams with dignity and compassion. read more.
17:07:53 local time BANGLA DESH
* Export traders to get Tk 4b cash incentives:
The government has released cash incentive worth Tk 4 billion to the country’s major export earning sectors. Following a government order, issued recently, the Finance Ministry has released the fund, which the Bangladesh Bank will distribute among the eligible export traders.
Exporters will receive the cash incentives as against their export revenues for July 1, 2011 to June 30, 2012 period, after deducting the amount earlier released as first installment. The local exporters should seek cash incentive by applying to the Bangladesh Bank through their respective banks.
“The incentives will be released after verifying documents through their respective banks and the Bangladesh Bank,” said a senior official of the finance ministry.
Of the Tk 4 billion, 15 sectors will receive Tk 3 billion while jute and jute goods sub-sectors will receive Tk 1 billion.
The 15 sectors are apparel manufacturing industries, frozen foods and fish , leather products, finished leather, agro-based products, agro-processing industry, sugar can waste, bone paste, potato, meat, poultry, hatchery egg, ship and bicycle. read more.
* Duty waiver for capital machinery import likely:
The government is set to waive customs duty (CD) on import of capital machinery for 100 per cent export-oriented industries in the upcoming fiscal to encourage investment in the country.
Under the possible waiver, exporters of readymade garments (RMG), leather, frozen foods, jute and other goods will get the opportunity to import capital machinery at zero duty instead of the existing 1.0 per cent tax. read more.
* End crisis in Ashulia garment factories:
The labour minister yesterday asked the stakeholders to arrange a meeting within one week to resolve different crises faced by the garment factories in Ashulia.
The apparel factories in Ashulia are often subjected to attacks due to different problems that tend to persist in the sector, said Labour and Employment Minister Khandker Mosharraf Hossain at a meeting in Dhaka.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) organised the meeting at its office to discuss the “present labour situation in the RMG sector in the Ashulia area”. read more.
* Regulator approves Envoy Textiles’ IPO:
The Securities and Exchange Commission yesterday approved Envoy Textiles’ initial public offering to raise Tk 90 crore from public.
The approval came at the stockmarket regulator’s meeting chaired by SEC Chairman M Khairul Hossain.
Using a fixed-price method, Envoy Textiles will float three crore ordinary shares of Tk 10 each at an offer price of Tk 30, including a premium of Tk 20, the SEC said in a statement.
The company will use the IPO proceeds to purchase machinery and as working capital. read more.
16:37:53 local time INDIA
* No choice but a stitch strictly in time:
Anywhere in Peenya industrial area, at around 6 p.m., an army of women march purposefully towards buses. They have just finished stitching miles of cloth into chic dresses, formal shirts and trendy jeans, and now, have to go home to make dinner for their families.
They are workers at the numerous contracted export garment manufacturing units that the area is known for. The Garment and Textile Workers Union (GATWU) estimates that there are 5 lakh garment workers in Bangalore, of which nearly 3 lakh are in Peenya, working across 15,000 units.
“We won’t be able to find, let alone buy, any of the international brands that we tailor for, in the shops around here,” says 35-year-old Anusuya, with a touch of pride and no irony at all. Wouldn’t she love to dress her children up in clothes she made with her own hands? She is struck by the thought for a moment. Then, she asks, “Where is the time for all that?” read more.
* slavery-like practices:
This report identifies the use of slavery-like practices involved in the manufacture of garments in India for international markets: the use of forced labour of young
women and girls in the factories of Southern India, particularly the spinning mills around Tirupur.
This report also identifies the routine use of child labour in garment finishing in Delhi. Details of international companies whose supply chains appear to be affected by some of these forms of forced labour are given in chapter four of this report.
* Exporters, industry welcome Foreign Trade Policy incentives:
India Inc and exporters on Tuesday said measures announced in the Foreign Trade Policy would help in sustaining export growth momentum amid global uncertainties.
“We welcome the FTP announcements. The policy will help exports a lot during the time when there is economic problem in the US and European markets,” Ficci President R V Kanoria said.
The government today unveiled a seven-point strategy to boost exports, which includes extension of interest subsidy scheme by one year till March 31, 2013. It also exuded confidence that India would be able to sustain 20 per cent export growth in the current fiscal.
Federation of Indian Export Organisations (FIEO) President Rafeeq Ahmed said the measures would have a lasting and positive impact on the country’s trade.
“The announcements have exceeded our expectations. Labour-intensive sectors like textiles have been the thrust area of the FTP. We welcome the steps,” Ahmed added.
Apparel Export Promotion Council Chairman A Sakthivel said the measures would give a huge boost to textiles sector. “During the times of global slowdown, the incentives announced in the FTP would further help in increasing engineering exports,” Engineering Export Promotion Council (EEPC) Chairman Aman Chadha said. read more.
* Amid economic concerns, Govt unveils plan to boost exports:
Amid global economic problems, the government on Tuesday unveiled seven-point strategy to boost exports which include extension of interest subsidy scheme by one year till March 31, 2013.
“We have now decided to extend the scheme (interest subvention) for another year till March 31, 2013 and expand its coverage to include other labour-intensive sectors namely toys, sports goods, processed agricultural products and ready made garments,” commerce minister Anand Sharma said while releasing annual supplement to the Foreign Trade Policy in New Delhi. read more.
* Reebok scam accused file bail plea in high court:
The two main %accused in the Rs 870 crore Reebok fraud case, former MD Subhinder Singh Prem and ex-COO Vishnu Bhagat, have filed anticiparory %bail application in the Punjab and Haryana high court. But the court refused, %pending procedural clarifications. read more.
* Adidas asked us to cook Reebok’s books: Ex-bosses:
The two former executives of Reebok India, at the centre of an alleged 870-crore alleged fraud, have accused German sports goods maker Adidas of attempting to hammer down the valuation of the Indian unit, as part of its strategy to reduce its payout to the minority shareholder in the company.
Former Reebok India chief executive Subhinder Singh Prem and former COO Vishnu Bhagat have in separate suits filed last month in the Delhi High Court said they were asked to ‘carry out certain illegal and unethical actions’ by the Adidas Group, such as manipulating accounts, booking irrelevant expenses and cancelling large distributorships, to ensure that the market value of Reebok India fell significantly ‘so that a significantly lower amount becomes payable to the exiting Indian joint venture partner’. Reebok India is a subsidiary of Adidas. read more.
* Get some green denim today!:
As a crusader for organic and natural fibres, Bangalore designer Deepika Govind presents yet another first — ‘Denim Green’, an Organic Denim Collection for men and women. The collection is a step forward in her continuing mission to spread the message of eco fashion by using of eco fibres and hand-woven textiles. It comprises a limited edition hand-woven denim collection in organic cotton, hand-woven using original craftsmanship and looms that date back to centuries ago; as well as a selection of denims created from semi-automised power looms. This first organic denim collection from Deepika Govind includes short dresses, handcrafted jeans for men and women, simple structured tops and a selection of bags. read more.
* Gujarat mulls textile policy:
Gujarat government is set to make a sharp move towards working out a complete policy which will give an advantage to the state following the crisis that has engulfed Tamil Nadu’s sprawling textile sector, especially the spinning mills.
A senior state bureaucrat said, “Several textile entrepreneurs, including members of spinners’ associations from Tamil Nadu, have approached the state government with the desire to shift to Gujarat in case there is an incentive policy in place. Our own cotton traders have also shown interesting in setting up spinning and cotton weaving enterprises.” read more.
* Will Anand Sharma bail out Indian textile sector today?:
The textile sector hit by a slowdown in its key markets like the US and European Union (EU) will be keenly awaiting the Foreign Trade Policy to be announced today.
The Commerce Minister is expected to announce incentives and subsidies to boost exports for labour intensive sectors like textiles and carpet manufacturing.
Exports of garments alone fell to US $1 billion, down 9.7 percent in the month of April.to read.
* Apparel sector benefits from new Foreign Trade Policy:
In addition to the labour intensive sectors like, carpets, handicrafts, handlooms and SME sector, the Commerce Minister – Mr Anand Sharma extended incentives to the Indian garment sector, today.
Announcing the annual supplement to the Foreign Trade Policy, he said, “We have decided to extend the interest subvention scheme for another year till March 31, 2013”.
In addition to sectors which were entitled to the interest subvention scheme last year, more sectors like apparels, toys, sports goods and processed agriculture products will benefit from this scheme. read more.
* We welcome interest rate subsidy to garment sector – GEA:
Mr. Rakesh Vaid, President, Garments Exporters Association (GEA) has complimented Shri Anand Sharma, Union Minister of Commerce, Industry & Textiles for the positive initiatives announced in the Annual Supplement to the Foreign Trade Policy, which will boost Indian exports by making them more competitive in the International market.
The extension of 2 per cent interest rate subvention to readymade garments till 31st March, 2013 is a step in the right direction and will provide necessary relief to garment exporters, said Mr. Vaid. read more.
* FTP to provide new fillip to textiles sector – Texprocil:
Shri Anand Sharma, Minister for Commerce, Industry & Textiles, announced the Annual Supplement 2012-13 to Foreign Trade Policy (2009-2014), on 05-06-2012. The policy is aimed at sustaining export growth momentum amid global uncertainties.
Welcoming the FTP announcements, Mr. Amit Ruparelia, Chairman, The Cotton Textiles Export Promotion Council (TEXPROCIL) said, “The policy with its seven-point strategy will help boost exports and would provide a new fillip to textiles sector”. read more.
16:07:53 local time PAKISTAN
* EU project imparts cotton selection training in Pakistan:
Sustainable Cotton Production for Pakistan’s Ginning SMEs (SPRING), the European Union project implemented in Pakistan by World Wide Fund for Nature, Pakistan (WWF-P), conducted a four-week long Cotton Selector Training Course in Sukkur.
The SPRING project was launched by the EU, under its regional initiative for Asia – Switch Asia, on March 30, 2012 in Sukkur, Bahawalpur and Rahimyar Khan regions of Pakistan.
The training programme was organized by WWF-P Sukkur, in collaboration with Pakistan Cotton Standard Institute (PCSI), for Switch Asia – SPRING ginners.
16:07:53 local time UZBEKISTAN
* How does cotton Uzbek children are forced to pick get into the products we wear?:
From the Field: Travels of Uzbek Cotton Through the Value Chain -A Report
Responsible Sourcing Network (RSN) (www.sourcingnetwork.org) is a project of the nonprofit organization As You Sow (www.asyousow.org). RSN addresses human rights violations and environmental destruction in the supply chains of consumer products at the raw commodity level. RSN supports network participants in
leveraging their influence to achieve significant and measurable solutions in the areas of conflict minerals and child slave labor.
From the Field: Travels of Uzbek Cotton Through the Value Chain is the first part in a series of learning tools for brands that want to know more about the production and characteristics of Uzbek cotton, their exposure to the issue of forced child labor, and what they need to do to start driving forced child labor out of their value chains.
Millions of children around the world work in cotton production.
Uzbekistan, listed by the U.S. Department of Labor (DOL) for both forced and child labor, is the only country where children are organized and forced by the government
to harvest cotton which earns the Uzbek government over one billion dollars annually. read more & download the report. or here.
* Indian investor lodges US$ 100 Million complaint against the Uzbek Government:
Spentex Industries Ltd, one of the leading textile companies in the world, has circulated a press note explaining the reasons for the forced bankruptcy of its investment project in Uzbekistan, the Spentex Toshkent Toytepa, the largest textile company in the Central Asia, which reads as follows:
“Uzbekistan government has committed itself to foreign investors to protect their investment and provide them legal stability in terms of the provisions of investment agreement and bilateral treaties entered on reciprocal protection and promotion of investments of the natives of other countries. An Indian investor SIl (Spentex) through its project company STTL invested and commenced its business in Uzbekistan in right earnest and made investment vide Investment Agreement dated 26th September 2006 entered between the Government of Uzbekistan and Spentex (investor). However, in the midst of term of the Investment Agreement certain changes in legal provisions, economic and business conditions and policies were adversely changed by the authorities in Uzbekistan. These changes being contrary to the provisions of Investment Agreement jeopardized the legal stability of its project company and its business became completely unviable. Spentex made many representations to Uzbek authorities and its financers for rectifying the situation but the same went unheard and ultimately project company was forced to shut down all its factories in Uzbekistan and bankruptcy was thrust upon it. Harassment by tax authorities and prosecutors was another reason which never allowed STTL to function normally as arbitrary penalties were imposed and pressure from the prosecutor was a common feature. As a result, Spentex has lodged its claim with the Government of Uzbekistan in pursuance to Investment Agreement to the tune of US$ 100 Million to compensate it for its losses in terms of its commitments. Although through the liquidation process the Liquidator has already taken over the management yet Spentex believes that Government of Uzbekistan would honor its commitments to repose and build the trust of vast community of foreign national for investments”. read more.