Manipulation in sugar, flour prices: Cabinet members deplore CCP's 'poor' performance

The Cabinet members have reportedly expressed annoyance at the Competition Commission of Pakistan (CCP) for its failure to protect consumers from manipulation in prices of sugar and flour (Atta), well-informed sources told Business Recorder.

This is not the first time, when the incumbent government including the prime minister has expressed its displeasure on the poor performance of the CCP, which was supposed to be in the field to deal with cartelization. Official documents reveal that the Interior Division informed the Cabinet on March 10, 2020 that in order to probe increase in sugar price the following committee was constituted by the Prime Minister, Imran Khan; (i) Director General, FIA (convener; (ii) representative of IB not below BS-20/21(member) and; (iii) Director General, Anti-Corruption, Punjab (member).

The committee was tasked to identify and fix responsibility, if any, on any individual/officer/organisation, including any purported benefit to a private party, besides suggesting a way forward for future course of action.

The director general, FIA submitted a preliminary report, wherein the committee during the course of proceedings, collected information from different, federal and provincial government departments, the Pakistan Sugar Mills Association (PSMA), and other stakeholders for providing answers to the questions on the ToRs of the committee.

The director general FIA suggested that on the basis of information collected from different sources, the committee was able to form a reasonable picture of the possible ways in which the malpractices in sugar sector could be used to hide real production, and possible ways of concealing the record of the sales.

The FIA was of the view that in order to ascertain the factors responsible for manipulation of the market price, further verification is required through forensic audit, and physical stock taking of a few selected mills.

The sources said, in order to carry out this exercise, as proposed by the DG FIA, a commission of inquiry needs to be constituted under the Pakistan Commissions of Inquiry Act, 2017 and in terms of Section 3 of Pakistan Commissions of Inquiry Act, 2017, it will consist of the following members; (i) Director General, FIA (Chairman); (ii) representative of IB not below BS-20/21(member) and; (iii) Director General, Anti-Corruption, Punjab (member); (iv) representative of SECP BS-2-/21 or equivalent officer and; (v) representative of the State Bank of Pakistan (SBP) BS-2-/21 equivalent, and; (vi) representative of FBR BS-20-21 or equivalent officer.

The commission will also be empowered under Section 10(b) of the Act ibid to constitute special teams consisting of officers from executive authorities and experts in specific fields, for the purpose of assisting the commission in conducting an inquiry.

The special teams shall have such power as may be prescribed under this Act.

During discussion, the Cabinet expressed resolve to bring the cartels, manipulating the sugar and flour market, to the book.

The members expressed concern over the role of the CCP in sugar and flour (Atta) crises as it was supposed to act as a watchdog to protect the consumers against market manipulation.

It was also suggested that Benami transaction made through the profits earned during the sugar crisis should also be probed. The Cabinet, while approving the ToRs of the Commission, decided that the role of the CCP in this crisis should also be made a part of the Commission report, in addition to Benami transactions and profits (approx) earned during the sugar crisis.