November 07, 2016

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Merchants pessimistic of 10 % deposit

Mandalay Commodity Depot Society has introduced a 10 per cent deposit system to prevent cheating, said an executive committee member recently.
The new system that requires the advanced payment of 10 per cent of the transaction price was instituted on 1st November. But some society members expressed concerns about its effectiveness and about the lack of input from traders.
“I am not optimistic of this system”, said U Soe Win Myint, a trader. “Legal action is the most effective way to prevent cheating. Actually, they should have implemented this plan only after seeking the opinion of all members. Some members do not agree with this”.
“This system also requires hiring of a lawyer and employment of office staff. It is a waste of the funds of the Commodity society”, he added.
There are three types of agreements. The first type requires terms of agreement being imposed by both parties whereas the second and the third types require terms of agreement being imposed unilaterally by either party. The deposit shall be kept at the bank.
But no one has started to follow this rule yet, said U Htay Maung, chairman of the ten per cent deposit supervising committee.
Three major cases of loss have occurred during the last ten years in Mandalay Commodity depot.—Aung Thant Khine

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