Staff Reporter
Islamabad
In light of the sugar scam probe report, the federal government on Monday ordered relevant departments to launch formal investigations and where necessary take “penal, corrective and mitigating measures” against the “sugar cartel” implicated in the commission’s report.
Adviser to the Prime Minister on Accountability and Interior Shahzad Akbar wrote letters to Competition Commission of Pakistan, Sindh chief secretary, Punjab chief secretary, State Bank of Pakistan, Federal Investigation Agency, Securities and Exchange Commission of Pakistan and Federal Board of Revenue to “undertake a comprehensive investigation” into the matter.
All recipients of the letters, barring the chief secretaries of Sindh and Punjab, have been directed to wrap up the investigation and submit a report to the federal government within 90 days.
In his letter to the CCP, Akbar highlighted that the sugar commission had conducted a forensic inquiry of nine mills and had found evidence of “cartelisation and anti-competitive practises” by mill owners as well as brokers “which led to hoarding” of stocks.
Furthermore, the letter said, the mill owners “orchestrated ex-mill and retail price manipulation through satta, abuse of dominant position by the sugar cartel and non-provision of sugar to the utility stores corporation”.
Akbar directed the CCP to carry out an investigation to “determine the reasons, magnitude and inordinate delay in taking action against the sugar cartel despite earlier internal findings regarding cartelisation” and where mandated take “penal, corrective and mitigating measures”.
He also directed the SBP to investigate offences committed by mill owners that have been mentioned in the report by the sugar commission, which include loan defaults, suspicious exports proceeds realisation, disbursement of subsidy to exporters “despite payment to cane growers below the support price and misappropriation of pledged sugar stocks”. Akbar also directed SECP and FIA to launch investigations into “instances of corporate fraud” that are detailed in the probe report of the sugar commission.
