Pakistani PM approves action against beneficiaries named in sugar inquiry report

ISLAMABAD, Jun 8, 2020, Pakistan Today. Special Assistant to Prime Minister on Accountability Barrister Shahzad Akbar on Sunday said that the government has decided to refer the issue of Rs29 billion subsidy given to the sugar industry to the National Accountability Bureau (NAB) and will has tasked other federal agencies to probe different aspects of the issue, Pakistan Today reported.

Last month, the government made public a report by the Sugar Forensic Commission (SFC) constituted to investigate and assign responsibility for the shortage and price hike of the commodity in the country in recent times.

Addressing a press conference in Islamabad along with Federal Information Minister Shibli Faraz, the PM’s aide said that Prime Minister Imran Khan chaired a high-level meeting in which he approved recommendations on an action plan against beneficiaries named in the sugar inquiry report.

He said that seven major actions were recommended during the meeting and the premier decided to send a reference to NAB of the subsidies given in the country since 1985.

“The government will forward the issue of subsidies given to the sugar industry in the last five years to NAB for investigation,” he said, adding that a political family received a subsidy in billions of rupees by exporting sugar to India during the 1990s.

Akbar said the government also decided to refer the case of income and sales tax fraud in sugar mills to the Federal Board of Revenue (FBR). “Matters related to unnamed accounts and transactions, tax evasion and similar issues were being sent to FBR,” he said, adding that FBR was directed to complete inquiry in 90 days. The FBR would also conduct an audit of sugar mills, he further said.

The PM’s aide said that the State Bank of Pakistan (SBP) would look into sugar mills’ loans and fake exports.

“The Federal Investigation Agency (FIA) and Securities and Exchange Commission of Pakistan (SECP) would investigate corporate fraud,” he said, adding that stock fraud, shareholder fraud and other types of corporate fraud such as underwriting would be investigated.

He said that the FIA has also been tasked to probe the exports of sugar mills. He also said that investigation agency would also probe money-laundering under the guise of sugar business. The matter of cartelisation of the sugar industry is being sent to the Competition Commission of Pakistan (CCP), he added.

He further said that the incumbent government has decided to forward the issue of extra crushing to the anti-corruption department. “The issue of extra crushing is also a violation of provincial laws,” he added.

Akbar said that an investigation would also be launched to find out where provincial laws were broken. “Sugar mill owners have enhanced their capacities without showing it officially to maximise profits. Most importantly, some mills did not pay farmers their dues on time, and showed more price on harvesting of sugarcane. This will be investigated by the anti-corruption units in Punjab, Khyber Pakhtunkhwa (KP) and Sindh,” he said.

Referring to recommendations made by the SFC, Akbar said that the “regulatory framework would be overhauled”. The commission recommended that technology and IT be used extensively going forward, the SAPM said, explaining that this would involve setting up an online stock system and putting barcodes on sugar bags.

He said the premier also recommended that a committee be formed under Minister for Industries Hammad Azhar that would determine the cost of production and set the price of sugar accordingly.

“The government will take on all the mafias in the country one by one. Everyone will be held accountable, no matter how rich or politically powerful. No exceptions can be made,” Akbar concluded.

Speaking on the occasion, Faraz said that the Pakistan Tehreek-e-Insaf (PTI) government was committed to holding accountable all those people who placed people, institutions and the future of the country at stake. “Our first and foremost priority is to protect the interests of the people,” he said.

“A lot of people thought that no action would be taken because there were some big names in the report but accountability is the government’s first priority,” he added.

He further that the farmers would benefit from the action that would be taken and efforts would be made to retrieve money that was looted.

The inquiry report had revealed names of many bigwigs, including Jahangir Tareen, the former secretary-general of the ruling PTI and a close confidant of the prime minister, who had allegedly benefitted from the crisis. On Saturday, the Pakistan Muslim League-Nawaz (PML-N) had questioned the ‘quiet’ departure of PTI senior leader Tareen for London despite being a prime suspect in the sugar scam.

Shortly after Akbar’s press conference on Sunday, PML-N spokesperson Marriyum Aurangzeb, in an apparent reference to Jahangir Tareen, said that the government was preaching accountability after helping powerful “ATMs” flee the country.

She urged the prime minister to not stage a play after helping to fill the pockets of the powerful. “Only Imran Khan sahib is involved in the sugar crisis. His house at Zaman Park was built using the money from cheeni chori,” she said.

She added that the prime minister and Punjab Chief Minister Usman Buzdar should also be presented before the public. “Because of Imran’s cheeni chori, the people have to buy sugar for Rs90 per kilogramme. The NAB-Niazi nexus will probe Imran’s theft, there is no bigger joke than this. Those who are risking the country’s future and economy are using the slogan of self-accountability,” she added.

The only purpose of forming the commission was to save PM Imran and Punjab CM Buzdar, she further said.

Tags: Pakistan