A representative of a member of Kathina robe offering association established by Mandalay merchants has reportedly run away without paying for beans he bought worth over Ks100 million.
Mandalay wholesaler association has already issued a statement warning against advance sale of commodities to prevent unnecessary financial problems. If such kind of advance sale is to occur, at least a 10 percent deposit should be paid, the statement suggests.
The man said to have bought beans worth over K110 million from 19 association member merchants and he has gone into hiding without paying the money, said Kyaw Thwin, general secretary of Kathina robe offering association.
"There was a fraud last night in our association. A member of the association is allowed to have two representatives. One representative has committed a fraud. Nineteen member merchants sold their beans to that representative. Exactly, the amount is K111.9 million. He has run away. We will be searching for him. Those responsible will be solving the problem," said Kyaw Thwin.
The wholesaler association has already formed a legal advisory team with four lawyers. If an advance sale occurs, the buyer has to pay a 10 percent deposit for the commodity. Bank accounts also need to be opened.