Almost all the trade bodies in the country, associations and chambers carry black spots and are defectively constituted. This appalling situation is reflected in the assessment of the Security Exchange Commission of Pakistan (SECP), sent to the Federation of Pakistan Chambers of Commerce and Industry's (FPCCI) President.
The SECP has categorised some of these bodies as "dissolved" while against others proceedings have been initiated under Section 439 of the Companies Ordinance 1984 for striking their names from the register of companies.
Section 439 relates to the removal of defunct companies from the register of companies and reads as follows:
-"439 - Registrar may strike defunct company off register where he has reasonable cause to believe that a company is not carrying on business or is not in operation, he may send to the company a letter inquiring whether the company is carrying on business or is in operation."
The SECP, in response to a letter written by the FPCCI President, asking for the status enjoyed by the trade bodies in the eyes of the SECP, has sent a list of these bodies with position and remarks.
Ironically, the names of most of these trade bodies appear in the preliminary voters' list issued by the FPCCI in connection with the elections due next month.
The horrifying scenario, given by the SECP, fortifies the allegation made by several business leaders recently in the print and electronic media that there exists a large number of fake and self-styled trade bodies only on paper.
Will FPCCI President Riaz Ahmed Tata stand up and block the participation of these bodies in the elections to ensure good governance or will he also ultimately jump on the band-wagon and follow the dictate, "can't beat them join them."
According to the list provided by the SECP, Deep Sea Fishing Trawlers Operators Association, Pakistan Dry Battery Manufacturers Association and Pakistan Tanners Association have been categorised as "dissolved".
All Pakistan Particle Boards Manufacturers Association has been remarked as "fictitious and fraudulent nomination".
Pakistan Film Producers Association and All Pakistan Gem Merchants and Jewellers Association cannot participate in the election as per the Director, Trade Organisation's (DTO) Order 13(1)/2004-T.O. dated October 20.
The DTO had informed the FPCCI Secretary General as follows: "As you are aware that the Federal government has superseded the executive committee of Pakistan Film Producers Association and All Pakistan Gem Merchants and Jewellers Association and administrators have been appointed in the two associations.
The previous representatives of these associations in the FPCCI should, therefore, not be allowed to exercise their right of vote in the forthcoming FPCCI elections.
And proceedings have been initiated against the following associations under Section 439 for striking their names from the register of companies: Pakistan Mine Owners Association, Pakistan Ship Breakers Association, Pakistan Agricultural Machinery and Implements Manufacturers Association, Pakistan Tea Association, Pakistan Motion Picture Investors Association, Pakistan Film Distributors Association, Pakistan Restaurants and Caterers Association, Pakistan Film Exhibitors Association, Pakistan Metal Containers Manufacturers Association and Pakistan Stationers Association.
It is interesting to note that besides the existence of fake trade bodies, even trade bodies which maintain proper record for inspection purposes are controlled by a few persons and get their relatives and close friends elected in rotation to keep their hold on them.
One hardly finds proper quorum in their general body and executive meetings, but continue to exist. They get signatures of absent members to prove quorum later on and issue minutes of the meetings to regularise them.
Muhammad Hanif Khan of Pakistan Seafood Industries Association has also filed an objection, referring to alleged illegal participation of large number of associations/trade bodies in the forthcoming election of the FPCCI for the 2005-06 term, otherwise not being qualified before the chairman and members of the FPCCI scrutiny committee.
A copy of the same has also been sent to the DTO, Ministry of Commerce, government of Pakistan.
He apprised him of the "situation surrounding the holding of the forthcoming elections of the FPCCI amid participation of trade bodies with nominees in the election whose names appear in the preliminary list of nominations. These are self-styled, pocketed, non-existent, non-functional and defunct, otherwise being not qualified to participate in elections.
"It will also be necessary to mention that even fictitious and fraudulent tools have been used to send nominations without bringing or seeking prior consent of the trade bodies from which nominations have been sent to the FPCCI," he said.
The preliminary nomination list had not been corrected by the FPCCI Secretary General as no public notice appeared in that regard, he said.
Hanif Khan prayed that in the interest of justice, those illegal entities illegally seeking participation be deleted in the final list for ensuring fair and transparent conduct of election.