The Sugar Inquiry Commission is said to have found sugar mills involved in "illegal" deduction in weight of sugarcane under the garb of binding (Bandhan) top, trash and mud aimed at fleecing the growers, well-informed sources told Business Recorder.
The second encounter between Pakistan Sugar Mills Association (PSMA) and a high-powered Inquiry Commission is scheduled for Saturday (today). Insiders claim that both sides are prepared to challenge the claims of the other. The inquiry team has prepared over 100 questions to be asked from the PSM representatives. Unconfirmed reports suggest that the Inquiry team has also summoned the representatives of 10 mills separately for seeking their viewpoints on the accusations.
FIA Deputy Director Muhammad Ahmad, in a recent letter to Cane Commissioner Punjab in his response stated that "under section 13(16) of the Punjab Sugar Factories Control Act, 1950, no deduction shall be made from the weight of cane on the ground that the cane is improperly stripped or an any other ground whatsoever, unless approved by the Cane Commissioner."
It was further stated in the reply of Cane Commissioner, "no any direction of Cane Commissioner Office regarding deduction in weight on pretext of binding ( Bandhan) Top, Trash and Mud was issued. However, the meeting of the Committee on sugar sector held on December 27, 2018 allowed deduction in weight on account of Top, Trash upto 3 per cent and upto maximum 5 per cent in case of banned / unapproved varieties."
FIA is of the view that Hunza Sugar Mills(Pvt.) Limited made deduction in weight on account of Top, Trash and mud and poor quality etc., the quantum of deductions made by both units is as follows:(i) year 2017-18, unit-1, deduction 512,798 mounds and unit-II, 20, 229 mounds;(ii) in 2018-19, unit-I deduction was 25,273 mounds and unit-II 3,417 mounds and;(iii) 2019-20, unit-1, 4537 mounds and unit-II 2,278 mounds.
The Inquiry Commission has sought the following clarification: (i) whether the deductions are legal and justified to the provisions of the section 13(16) of the Punjab Sugar Factories Control Rules, 1950; (ii) whether mere issuance/circulation of minutes of a meeting are sufficient to allow deduction which are in fact not allowed under section 16 of the Punjab Sugar Factories Control Act, 1950 read with section 13(6) of the Punjab Factories Control Act, 1950 and ;(iii) whether, notification for any such deduction etc, is mandatory provision, if it is mandatory than why deduction in weight was allowed through circulation of minutes of meeting of December 27, 2018.
According to official documents, the Inquiry Commission has also included the issue of tax evasion in the ongoing forensic audit and asked 10 sugar mills to provide details about the road cess and market committee taxes of the last five years.
Those mills which have invested in foreign countries to buy stakes in sugar mills will also be quizzed. In addition, the mills which got licence to produce sugar on sugar beet but instead they crushed cane in violation of licence are also on the radar of Inquiry Commission.
Unconfirmed reports also suggest that someone has transferred millions of rupees in different accounts of mill partners, who invested in "collaboration" with a German-based company. At least five or six sugar dealers have also assured complete cooperation to the Inquiry Commission in case they are not dealt harshlu. Sugar brokers Association has accused officials of mishandling its members. However. Chairman of the Commission has assured them that no official will be involved in physical intervention in any case.
Comments
Comments are closed.