Will APSMA swallow this bitter pill?

By: Our Staff Reporter | September 13, 2009 |
Will APSMA swallow this bitter pill?
ISLAMABAD - While the federal government has been dillydallying over the inevitable action against the sugar mafia, the Competition Commission of Pakistan moved to rein in the millers and the CCP teams raided their association offices both at Islamabad and Lahore.
As a result of the said inspection substantial material has been impounded which will be analysed by CCP, an official handout of the Commission stated here on Saturday.
The Commission is authorized to fine the sugar millers in case they are found guilty during the analysis of material confiscated during the raids. Earlier the CCP in a similar move against the cement manufacturers had fined them over six billion rupees.
The Commission in its meeting here on Friday had authorized a set of two teams of officers to simultaneously carry out the search and inspection of the All Pakistan Sugar Mills Association (APSMA)offices both at Islamabad and Lahore.
The search and inspection was authorized on the basis of news item appearing in a section of the press on the same day reporting that APSMA had asked its Member Undertakings to release 1.2 million tons sugar stock to retire State Bank of Pakistan loans.
The said news item, inter alia, also reported that sugar mills had currently stocks of 1.2 million tons but were not releasing sugar in the aftermath of the decision of the Honourable Lahore High Court to ensure ex-mill price at Rs. 36/kg.
Although, it was also stated therein that after the announcement of the Prime Minister, the Sugar Mills have 'started releasing their stock to retire SBP loan and 'get advances from banks for crushing season 2009-10; the above mentioned news item persuasively indicates that the decisions by APSMA in this regard and the collective/collusive behavioural pattern of the Sugar Mills may entail violation of provisions of sections 3 and 4 of the Competition Ordinance.
In view of prima facie evidence of collective withholding of supplies and collective increase in price - which comes across as collective tactics adopted by economic agents seeming to have the object or effect of preventing, restricting or reducing competition, the CCP deemed it proper to verify and substantiate such position, through search and inspection under Section 34 of the Ordinance.
Earlier government sources told The Nation Minister for Industries Manzoor Wattoo has been impeding the investigation into the sugar scam as appointed by the Prime Minister Syed Yousaf Raza Gillani under Finance Minister Shaukat Tarin during the last cabinet meeting.
According to the sources, the Punjab government did not agree to have sugar scam investigation committee under the Industries Minister with certain allegations on the Minister. Asked by the Prime Minister, Punjab Chief Minister Shehbaz Sharif during the last meeting of the Chief Ministers under the PM, had requested to appoint the Committee under Finance Shaukat Tarin.
It is also pertinent to note here that Tarin had already been reported as saying that he was toothless against the sugar mafia that had links in the influential ruling quarters.

This news was published in print paper. Access complete paper of this day.

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