Minister for Industries and Production Mian Manzoor Wattoo has been accused of striking a 'personal deal' with the representatives of Pakistan Sugar Mills Association (PSMA) for agreeing to "unjust" increases in ex-mill sugar prices to Rs 49.75 in Punjab and Rs 48 per kg in Sindh. The sugar prices for Balochistan and NWFP will remain at par with that of the Punjab.
A quick survey on agreed ex-mill sugar prices conducted at Aabapara market in the federal capital revealed massive public discontent with accusations of corruption. "There were hectic closed-door activities in the rooms opposite the committee room of the Industries Ministry and the Minister's office," said one of the officials of the same Ministry. According to that eyewitness, the representatives of the Punjab and Sindh governments were kept away from these 'hidden' negotiations.
Haroon Akhtar and Javed Kayani of the PSMA asked the Minister's staff to give them a separate room and a phone for consultations with some outsiders. After striking a "deal" with the PSMA, the Minister entered the committee room, sat down close to Haroon Akhtar and Javed Kayani before the three decided on the new ex-mill price.
Insiders are of the view that other officials were not consulted on the new ex- mill price. Additional Secretary of the Punjab government was approached by this correspondent and requested for his views on this deal. "I know nothing about what has happened," he said baffled. However, Sindh government representative was heard seeking advice from Karachi about the proposed price. NWFP was represented by a Director whereas there was no representation from Balochistan.
"The way, Industries Minister allowed the PSMA to increase ex-mill sugar prices clearly indicates the existence of some personal deal," sources said. In the committee room, the PSMA representatives made a hue and cry over the crackdown, which, according to them, had demoralised the sugar mill owners and dealers.
"How many countries had launched crackdown on their factories," asked Senator Haroon Akhtar, brother of former Commerce Minister, Humayun Akhtar Khan, and owner of Tandlianwala Sugar Mills which, has been accused of refusing to fulfil its contractual obligations with the Trading Corporation of Pakistan (TCP). PSMA was also of the view that the government was behind what it termed the "media trial" of sugar mills which should be immediately stopped, so said Haroon Akhtar in a hand-written note.
Meanwhile, Competition Commission of Pakistan (CCP) has taken notice of the statement issued by Javed Kayani, the Vice-Chairman of Pakistan Sugar Mills Association (PSMA) and published in all leading newspapers of Tuesday, 18 August 2009, in which he is reported to have said, "if the government does not stop its crackdown, there will be no sugarcane crushing in the next season."
According to some legal experts, this is prima facie a violation of the Competition Ordinance, 2007 by the Association. The CCP has directed Kayani to clarify his position with regard to his statement. Should the statement be confirmed as being true, the Commission may consider the initiation of proceedings in accordance with the Competition Ordinance.
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