NAB to investigate Rs29b sugar subsidy;
FBR to launch enquiry into sales tax fraud
Staff Reporter
Islamabad
Special Assistant to Prime Minister on Accountability Shahzad Akbar on Sunday said that Prime Minister Imran Khan has approved a “matrix of actions” to be taken against those named in the Sugar Forensic Commission’s (SFC) report.
Last month, the government had made public a report by the Sugar Forensic Commission (SFC) constituted to investigate and assign responsibility for the shortage and price hike of the commodity in the country in recent times.
Addressing a press conference in Islamabad alongside Information Minister Shibli Faraz following a meeting with the premier on Sunday, Akbar said it has been decided to take penal actions against sugar mill owners that violated the law, recover the looted money, and overhaul and reform the regulatory system.
“Seven major actions have been approved by the premier. The entire matter of Rs29 billion subsidy given to sugar mill owners will be investigated by the National Accountability Bureau (NAB). Any companies that committed violations after getting subsidy would fall within NAB’s jurisdiction. Subsides given by the federal or provincial governments will be investigated.
“Political families entered the sugar business in the 1990s and since then they have crushed everyone else in the industry. A well-known family in the 1990s exported sugar to India. NAB will also investigate that case and in this regard, a reference will be drafted.
“Not only the nine mills that we have already mentioned were the beneficiaries but nearly all the 80 sugar mills,” he said.
Akbar said that the Federal Board of Revenue (FBR) would launch investigations into sales tax fraud, mill owners showing reduced income and benami transactions, which he said the report had found evidence of. It has been directed to ensure that adjudication on cases and recoveries start within 90 days. The FBR has also been directed to conduct forensic audit of all mills besides those mentioned in the report, he added.
“A significant amount of money might be added to the national treasury through recoveries [made as a result of these investigations].”
The SAPM said that the third action the premier approved was investigation of cartelisation by the Competition Commission of Pakistan (CCP). “These companies became wolves and caused damage to the people and the CCP failed to check this in the past. A new team has been constituted that will submit a report within 90 days.”
The State Bank of Pakistan would be directed to investigate companies that showed fake exports or who “converted foreign remittances into halal income”, defaulted on loans or sold pledged stocks. It would also submit a report to the finance ministry within 90 days. “Not just a
