Delay in appointment of Chairman and members of the newly established Competition Commission of Pakistan is a serious setback for the commission officials, who are helpless to carry out day to day operations/enforcement since promulgation of Presidential Ordinance.
Sources told Business Recorder on Wednesday that the Ministry of Finance has not yet notified the names of chairman and members of the commission despite promulgation of the Presidential Ordinance on October 2, 2007. This has created a huge gap in the commission due to uncertain situation about the working of the commission under the new environment.
Legally speaking, MCA no more exists and the Monopoly Control Restrictive Trade Practices Ordinance, Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance (MRTPO) 1970, have been repealed. The new Competition Commission of Pakistan has no legal backing due to absence of chairman and members. Thus, the organisation is no more MCA or commission.
Experts said that the vacuum in the organisation has given a free hand to the cartels and companies involved in monopolistic trade practices. In the present situation, the commission has no power to issue any notice to any company. All on-going inquiries against different sectors including cement cartel has came to a standstill. The future hearings against the companies could also not be conducted. No action could be initiated against any violator under MRTPO 1970. If any notice is served on a company by the MCA, it could be challenged on grounds that MCA does not exist. The helpless Competition Commission could not issue any notice due to absence of chairman without powers.
Sources said that the Ministry of Finance has to notify the chairman and members of the commission on top priority basis. A summary has been moved to the Prime Minister Shaukat Aziz for approval of the names of the chairman and members of the commission. The World Bank's (WB) favourite Khalid Mirza appointment as chairman competition commission is also without any legal cover. Under the new law, five members including a chairman must be notified to make the competition commission operative.
On promulgation of the Presidential Ordinance, the MCA had not received any guidelines from relevant ministry about the status of commission's working till appointment of its top management. The commission does not know that what would be the interim arrangement till appointment of top brass. The commission's officials are so confused that all type of correspondence with the companies, regulators and field formations has been stopped. The powerless chairman and his subordinate officials are waiting for the instructions of the Finance Ministry.
The day to day delay in appointment of top management of the commission might give an opportunity to the powerful lobbies to pressurise the government for delaying tactics, experts added.
Presently, commission has no authority to prohibit abuse of market dominance, anti-competitive agreements, deceptive market practices, and mergers of undertakings, which substantially reduce competition.
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