Prime Minister Shaukat Aziz is reported to have expressed his desire for a briefing on the agonising situation prevailing in the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). The Prime Minister, during the recent meeting of Corporate and Industrial Restructuring Corporation (Circ) in Lahore, inquired about the FPCCI affairs from the Circ Director and a candidate for the office of the FPCCI Presidentship for the 2005-06 term, Sardar Muhammad Ashraf Khan.
In response, Sardar Ashraf has written a detailed letter to the Prime Minister, stating that he understood his (Prime Minister's) concern and interest in the affairs of the apex body of the private sector.
"I kept silent only for the reason that it might spoil the atmosphere of the meeting and decided to send you formal report, covering all aspects of the issue," he said.
He mentioned the following few events to show how the affairs of the FPCCI are being managed:
-- British Commerce Minister refused to visit the FPCCI as Pakistan-British Business Council Chairman Ali Ashraf Khan issued an insulting statement against the members of the delegation, who were to visit along with the minister.
-- During an export trophy function last year in Karachi, the Saudi Counsel General and other diplomats left the venue of the ceremony as some non-diplomats had occupied the seats reserved for the diplomatic corp.
-- The FPCCI auditors detected serious irregularities in the finances and the FPCCI accounts funds, maintaining fictitious accounts, in the name of the FPCCI, misappropriation incurring huge expenditure without authorisation and large amount of receipts from different sources has not been shown in the book of accounts.
-- Large amount of money was received in cash from the members of the freight forwarders' council, which was never deposited with the FPCCI accounts.
-- The matter was investigated and a misappropriation of more than Rs 6.5 million was found. The person involved was appointed head of administration and in-charge of 2005-06 elections.
-- No recovery was made and no criminal case was registered against those who had indulged in such a crime.
-- The FPCCI participated in Hanover Fair with great funfair, but it ended in a big fiasco.
-- An international warrant of arrest from German authorities was issued against the FPCCI President through foreign office and the German Embassy in Pakistan for not settling the accounts.
-- The G-77 Cell, the most infamous organisation with wide spread impression of being an umbrella organisation of African Drug mafia, is housed in the FPCCI premises. -Not a single penny in investment or business has been brought by this organisation in the country for last 10 years.
-- Environment cell in the FPCCI had to be closed down after a scandal of spending Rs 140 million from the Dutch government in a suspicious manner. The Dutch government showed its extreme displeasure on the manner and mode of handling the account. The project was wound up to hide the facts, which did not reflect in the FPCCI accounts.
-- Quite a few people spent large amount of money on travelling abroad. FPCCI's immediate past Vice-President Haroon Rashid caused big embarrassment to President General Pervez Musharraf during Rome investment conference. The Board of Investment (BoI) had conveyed the President's displeasure to the FPCCI.
In all, 36 incidents have been highlighted in the letter to show how the working has been pulverised by the group in control of the FPCCI.
Drawing Prime Minister's attention, Sardar Ashraf said it seemed inevitable to take corrective measures by the government to save the institution from being ruined and rebuild its reputation, integrity and dignity.
He suggested the following measures, which might help in finding a solution to the problems being faced by the FPCCI:
-- To appoint a person/businessman of repute or a retired government official like Farooq Rahimtoollah, Zahid Zaheer or Abu Shamim Ariff or any other person of the calibre to screen out bogus chambers, associations to put the cart back on the track.
-- A task force, preferably headed by the Chairman, Securities and Exchange Commission of Pakistan (SECP), to recommend and initiate reforms in consultation with the Ministry of Commerce and genuine trade bodies to restructure the institution to meet the challenges, requirements of the present age and trade ordinance, corporate structure of the trade bodies required major changes to suite the present environment.
-- Hold elections of the genuine chambers and associations to give the FPCCI a status of an apex body of private sector. A group of unscrupulous elements have taken over the apex trade body, who are not only misusing the resources, name and prestige of the institution but also discouraging progress of trade bodies.
He requested the Prime Minister to spare some time to initiate the action to streamline the working and systems in trade bodies so that they could play their role in the economic development of Pakistan.