The Competition (Amendment) Bill, 2009 would empower the Competition Commission of Pakistan (CCP) to give punishment of imprisonment up to 10 years to the chairman and chief executive of a penalised company, who would fail to follow the orders of the Commission.
The Competition (Amendment) Bill, 2009 has been presented before the National Assembly to amend the Competition Ordinance, 2007 to enhance penalty for non-compliance of CCP orders.
Under the proposed amendment, failure to comply with an order of the Commission shall constitute a criminal offence punishable with imprisonment for a term which may extend to ten years in the case of Chairman and Chief Executive of a penalised company, five years in the case of Executive Directors and (Executive) General Managers of a penalised Company and two years in the case of a Company Secretary of a penalised Company. In this regard, the Competition (Amendment) Bill, 2009 has proposed amendment of section 38 of the ordinance.
According to amendment of section 38 Ordinance LII of 2007: "In the Competition Ordinance, 2007 (No LII of 2007) in section 38, in sub-section (6), for the words and commas "one year or with fine which may, extend to twenty five million rupees and the Commission may, in addition to, or in lieu of, the penalties prescribed in this Ordinance, initiate proceedings in a Court of competent jurisdiction", the words and commas "ten years in the case of Chairman and Chief Executive of a penalised company, five years in the case of Executive Directors and (Executive) General Managers of a penalised Company and two years in the case of a Company Secretary of a penalised Company," shall be substituted."
Giving rationale of the proposed amendment, the CCP was of the view the main purpose of the amendment is to ensure that the CCP could carry out the functions and responsibilities assigned to it, it is imperative that provisions are built in to ensure that severe penalties are imposed on the Companies that are in violation of a orders of the Commission.
"By ensuring the specified penalties are applicable to the higher cadres of the corporate hierarchy and are imposed in accordance with the degree of responsibility and authority exercised by each level, this amendment will ensure that the officers of the Company exercise due care and diligence while discharging their duties,", CCP said.
It would also reinforce the pitfalls that await each individual who attempts to manipulate prices or distort the free and fair operation of the market for goods and services.
"The protection of consumers'' right is the most important responsibility of the State in a developing economy like Pakistan, where prices can remain prone to fluctuation and its aim is to protect the consumers from price fluctuations, exploitation, artificial shortage by withholding supplies and other abuses of the free market which have seen recently in sugar industry, edible oils sector, cement industry, fertiliser sector, financial services sector, oil refining and the oil marketing sectors, the CCP added.