18 ToRs of inquiry commission: COI to probe increase in sugar prices during last year

ISLAMABAD: The Commission of Inquiry (CoI) led by Federal Investigation Agency (FIA) Director General Wajid Zia is looking into the role of various stakeholders – government institutions and private sector – in increase of sugar prices during last year, its Terms of Reference (ToRs) say.

According to the March 16, 2020 notification of the Interior Ministry, the CoI has been constituted by the federal government under Section 3 of the Pakistan Commissions of Inquiry Act, 2017, to probe into the increase in sugar prices, which recorded phenomenal spike in 2019 after the sugar export was allowed and the Punjab government gave Rs3b subsidy.

The notification said that the CoI will submit its report to the prime minister within 40 days after its issuance, a period that ends on April 25.

The five-member CoI headed by Wajid Zia comprises Gohar Nafees, Director General, Anti-Corruption Establishment, Punjab, Bilal Rasool, Executive Director, Security Exchange Commission of Pakistan, Majid Hussain Chaudhry, Joint Director, State Bank of Pakistan, and Dr Bashirullah Khan, Director General, Intelligence and Investigation Directorate, Federal Board of Revenue, Islamabad.

Its 18-ToRs are: Whether the production, this year, was low as compared to past years? Was low production the primary reason for increase in prices? Was the minimum support price sufficient?

Did the sugar mills purchase sugarcane at exorbitantly higher prices than the minimum support price? If yes, then reasons thereof? Reasons for mills not purchasing sugarcane for a limited period of a few weeks from the farmers, and its impact, if any, on sugar prices?

Basis for determination of ex-mill price and reasons for increase in ex-mill price? Market manipulation/ cartelization by sugar mills, if any?

Impact of forward contracts on the prices of sugar and whether any mala fide is involved? Whether margins between ex-mill and retail prices increased, compared to previous years, or otherwise? If yes, reasons thereof and potential beneficiaries? Impact of tax increase on sugar prices at ex-mill/retail level?

Hoarding at wholesale/retail level and within sugar mills vis-à-vis stocks of last year. Was export of sugar justified? Any subsidy given on export and its impact with potential beneficiaries?

Basis for determination of retail price of sugar? Role of various stakeholders, including government institutions and private sector in increase in sugar prices, including timely/preventive/pre-emptive remedial measures to control sugar prices and mala fide, if any, of any stakeholder?

Verification of the sale of sugar to find out malpractices of hoarding and manipulation of supply to the market to maximise profiteering?

Physical verification of stock to find out whether there is any excess/shortage of stock as shown in the books and the verification of the genuineness of the sale record; The role of Competition Commission of Pakistan in this crisis? Benami transactions and profits (approximately) earned during the sugar crisis? Any other issue, deemed appropriate, related to the increase in recent sugar prices?

The notification further said that the CoI will be empowered under Section 10(b) of the Act to constitute special teams consisting of officers from executive authorities and experts in specific fields for the purposes of assisting it in conducting on inquiry. The special teams will have such power as may be specified under this law.

Section 3 under which the CoI has been set up says whenever it is expedient to conduct an inquiry into any definite matter of public importance, the federal government may, by notification in the official Gazette, constitute a CoI in accordance with the provisions of this Act. Matter of public import includes a matter of general interest or direct or vital concern to the public.