Massive embezzlement detected: CJ

ISLAMABAD A massive embezzlement of billions of rupees in price fixing mechanisms for petroleum products in local markets since 1999 by the beneficiaries, oil companies, OGRA as well as the Federal Government has been detected, remarked Chief Justice Iftikhar Muhammad Chaudhry.
The Chief Justice was heading a three-judge bench of the Supreme Court (SC) that heard two petitions of Rukhsana Zuberi and Iqbal Zaffar Jhagra with regard to oil, CNG and LPG prices. Justice Khilji Arif Hussain and Justice Chaudhry Aijaz Hussain were other judges of the bench. During Thursdays proceedings, the CJ observed that Justice (Retd) Bhagwandas report pointed out billions of rupees embezzlement by the authorities concerned with Ministry of Petroleum.
Expressing displeasure over procrastination in the implementation of Rana Bhagwandas Judicial Commission Report on oil pricing, he observed that the government failed to implement the recommendations of the report as delay tactics were being applied.
It appears that the delay tactics, which left everything to the sweet will, compromise with the oil companies by overlooking loot and plunder in fixing oil prices, the court observed.
The CJ expressed worries over the miseries of common persons as a few selected were earning most of the money. All contracts were being awarded on the basis of nepotism, he explained.
Acting Attorney General Shah Khawar informed the court that the federal government authorised OGRA to determine oil prices.
Khawar further remarked that it would be highly inconceivable to be oblivious of the interests of oil companies and act freely and independently in the larger interest of consumers.
Ikram Chaudhry Advocate, Counsel of PML-N leader Iqbal Zaffar Jhagra, argued that the Oil Companies Advisory Committee (OCAC), which used to determine oil prices, was constituted three decades ago and there was a pressing need to amend antique policies.
There was no justification for the increase in prices of petroleum products when oil prices were on the decline in the international market, he explained.
Under which laws and principles were billions of rupees being received through taxes on petroleum products? the learned counsel asked.
He said it was a fact that governments couldnt run without imposing taxes but imposing so many taxes on one product is unjustified.
The apex court was also surprised over the performance of the cabinet, as the steps recommended by the advisory committee were not taken.
Counsel for oil companies Advocate Khalid Anwar argued that the OCAC announced a deregulation policy by introducing a formula called rationalised import parity policy on petroleum products.
It is worth mentioning here that the apex court asked the relevant authorities to submit their reports. It was also observed during the hearing that the spirit of the deregulation policy was to authorise OCAC till the formation of a permanent regulatory authority, which was later established on March 28, 2002, when the OGRA Ordinance 2002 was promulgated and enforced.
The proceedings of this case were adjourned till 24th November.