To probe profits earned in sugar crisis: Imran forms inquiry commission led by FIA DG

LAHORE: Prime Minister Imran Khan constituted an inquiry commission headed by Panama-fame Wajid Zia director general FIA to probe the increase in sugar prices, besides benami transactions and profits earned during the sugar crisis, and role of the Competition Commission of Pakistan (CCP), private sector, government institutions, in the whole crisis.

Another Panama case linked executive director Security and Exchange Commission of Pakistan (SECP) Bilal Rasool, DG Anti-Corruption Punjab Gohar Nafees, Deputy Director General Intelligence Bureau (IB) Ahmad Kamal, Joint Director State Bank of Pakistan (SBP) Majid Hussain Chaudhry, and DG of Directorate General of Intelligence and Investigation Federal Board of Revenue (FBR) Dr Bashirullah Khan are part of the Commission.

According to the notification, a copy of which is available with The News, 19 Terms of Reference (TORs) are assigned to the Commission by the prime minister to inquire within 40 days. The premier assigned to inquire whether the production was lower this year as compared to the past year, was the low production the primary reason for increase in sugar price. The Commission will also investigate whether the minimum support price of sugarcane was sufficient. Did the mills purchase sugarcane at exorbitantly higher prices than the minimum support price, if yes then what were the reasons.

The inquiry commission will also probe basis for determination of ex-mill price of sugar, reason for increase in ex-mill price, market manipulation/cartelization by sugar mills, impact of forward contract on the sugar prices and what mala fide involve in it. Further, the Commission will also investigate that whether margins between the ex-mill and retail prices increased, compared to previous years, or otherwise. What are reasons of this increase and the beneficiaries of this increase.

It will also inquire about the impact of increase in tax in sugar prices at ex-mill and retail levels, hoarding of sugar at wholesale, retail level and within sugar mills vis-à-vis stocks of last year. Additionally, the inquiry commission will also probe justification of sugar export along with the subsidy given on export and its impact and beneficiaries, one of the important areas of investigation of sugar crisis beneficiaries. The Commission will also investigate the basis of determination of sugar retail price, role of various stakeholders, including government institutions, and private sector in the increase of sugar prices, including timely preventive, preemptive remedial measure taken by the government to control the sugar price and mala fide of the government officials concerned and other stakeholders. The Commission will also conduct the verification of sale of sugar to find out the malpractices of hoarding and manipulation of supply to the market to maximise profiteering. Further, the physical verification of stock to find whether there is any excess/shortage of stock as shown in the books and the verification of the genuineness of the sale record of sugar mills, the role of the CCP, and benami transactions and profits earned during the sugar crisis.

The Commission is authorised to work beyond the TORs with last TOR that “any other issues, deemed appropriate, related to the increase in recent sugar prices”. The Commission is empowered to constitute special team consisting of officers from executive authorities and experts in specific fields for the purpose if assisting the Commission on inquiry.

It is pertinent to mention that Wajid Ali Shah was the Cane Commissioner Punjab during the sugar crisis while he was later transferred to the post of director general food Punjab along with additional charge of Cane Commissioner Punjab. During this charge, country witnessed both sugar and wheat crises while he is still holding the office of director general food Punjab at a time when the province is getting ready for wheat procurement for the next season.