PM Imran says no one above accountability: Noose tightens round sugar mafia’s neck

ISLAMABAD: Special Assistant to the Prime Minister on Accountability Shahzad Akbar on Sunday said Prime Minister Imran Khan had approved a matrix of actions against those named in the Sugar Forensic Commission (SFC) report, including referral of issue of Rs29 billion subsidies to the NAB for report in 90 days.

Speaking here at a news conference along with Minister for Information and Broadcasting Shibli Faraz, Shahzad Akbar said the prime minister approved the recommendations and action points of sugar inquiry commission report in a high-level meeting held in Banigala earlier in the day.

Rs6.5 billion subsidy was given each in 2014-15 and 2015-16, Rs20 billion in 2017-18 and the one given by the PTI government and Sindh government would also be investigated.

Shahzad Akbar said the meeting also decided to send a reference to the NAB of the subsidies given in the country since 1985 and how a well-known political family received subsidy in billions of rupees by exporting sugar to India during the 1990s and some leading political families set up dozens of sugar mills.

He pointed out that the commission in its report suggested recommendations including punishment and recoveries, overhaul of regulatory framework and rationalization of sugar prices based on the actual cost of production.

The matter relating to unnamed accounts and transactions, tax evasion and similar issues, he noted, was being sent to the FBR and it had been directed to complete its proceeding in 90 days' time for further action.

He said the matter of cartelization of sugar industry was being sent to the Competitive Commission of Pakistan, which had a new team in place within a week. He said the matter of investigation of corporate fraud was being referred to FIA and SECP and with a direction to complete the investigation in 90 days for filing in courts.

The government, a few days back, made public a much-awaited 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.

Shahzad Akbar said it had been decided to take penal actions against sugar mill owners who violated the law, recover the looted money, and overhaul and reform the regulatory system.

He explained, "Seven major actions have been approved by the prime minister. The entire matter of Rs29 billion subsidy given to sugar mill owners will be investigated by the NAB. Any companies that committed violations after getting subsidy will fall within NAB's jurisdiction. Subsides given by the federal or provincial governments will be investigated”.

Shahzad Akbar pointed out that the political families entered the sugar business in 1990s and since then they had crushed everyone else in the industry. The NAB would also investigate the case of sugar trade with India in 1990s and in this regard, a reference would be prepared.

He also asserted that not only the nine mills that had already been mentioned after their audit were the beneficiaries but nearly all the 80 sugar mills. Shahzad Akbar said the Federal Board of Revenue (FBR) would launch investigations into sales tax fraud, mill owners showing reduced income and benami transactions, which he said the report had found evidence of.

It has been directed to ensure that adjudication of cases and recoveries would start within 90 days while the FBR has also been directed to conduct forensic audit of all mills besides those mentioned in the report.

He was confident that a significant amount of money might be added to the national treasury through recoveries made as a result of these investigations. Shahzad Akbar noted that the third action the prime minister approved was investigation of cartelisation by the Competition Commission of Pakistan (CCP), as these companies became wolves and caused damage to the people and CCP failed to check this in the past. A report within 90 days will be submitted in this connection.

The State Bank of Pakistan, he noted, would be directed to investigate companies that showed fake exports or who converted foreign remittances into halal income, defaulted on loans or sold pledged stocks. It would also submit a report to the Ministry of Finance within 90 days.

He explained that not just a generalised report, the SBP would mention companies and their frauds by name and it would impose heavy fines on those found in violation.

Moreover, the FIA and the Securities and Exchange Commission of Pakistan (SECP) would investigate corporate fraud, he said and continued that stock fraud, shareholder fraud and other types of corporate fraud such as underwriting would be investigated.

The FIA would also investigate the matter of fake exports to Afghanistan and money laundering. Every receipt would be checked and the FIA would file cases in the courts within 90 days against those who did this fraud.

Shahzad Akbar said an investigation would also be launched to find out where provincial laws were broken. The 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 and imposed weight cut. This will be investigated by the anti-corruption units in Punjab, Khyber Pakhtunkhwa, and Sindh.

Citing the recommendations made by the SFC, Shahzad Akbar said regulatory framework would be overhauled, while the commission recommended that technology and IT be used extensively going forward and this would involve setting up an online stock system and putting barcodes on sugar bags.

He said the prime minister 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.

He emphasized that the government would take on all the mafias in the country one by one and everyone be held accountable, no matter how rich or politically powerful. No exceptions could be made.

Taunting senior PML-N leader Shahid Khaqan Abbasi, he alleged the ex-premier proved to be more loyal to his party leadership than his elders and doling out unprecedented Rs. 20 billion on the wishes of Salman Shahbaz was one such example.

Replying to questions, he said all had reservations about the NAB and so many scandals had already been there, while results were being awaited but the government was bound to go by the law and the anti-graft body had an independent status.

He said the government would provide resources, if the NAB needed them in the face of burden of cases. He said the FIA would be overhauled and 600-700 persons had been recruited and their training was being impeded by the coronavirus.

“Cases would be filed with the courts and the government is in the process to increase the judges’ strength. Senator Shibli Faraz said PPP leader Bilawal Zardari Bhutto would emerge after every months or so, finding acceleration in the accountability process of Shahzad Akbar holding news conferences.

He alleged that their APC was being held in relation to the ongoing accountability process and how to do bargaining. “The APC is being held by the sugar daddies on how to defend them. Their lawyers are trying to find basis for filing writs to save their skins but so far have not been able to find anything,” he remarked.

About allowing export of sugar, he said both Asad Umar and Advisor Abdul Razzak Dawood had appeared before the commission and the permission was given in view of huge deficit against dollar. However, despite this, the matter was referred to the NAB.

Shibli noted the government was fully committed to holding accountability of all those who had put the people, institutions and future of the country at stake.

He said the first and foremost priority of the government was to protect the interests of the general public while before coming to power, the PTI had promised to hold accountability of all those who had misused the national resources for personal benefit.

The minister recalled that when the prime minister constituted a joint investigation team on sugar crisis, people thought that like past practices, its report would not be made public, but it was made public.

He said as the prime minister was serious about this issue, an independent inquiry commission was constituted and asked for forensic audit of sugar mills, but people were skeptical about any positive outcome.

However, he said not only its report was made public, but now the prime minister had also given approval for action against all responsible persons, as the government was determined to protect the rights of the masses.

He said credit for this achievement went to Shahzad Akbar and his team, who worked hard and despite facing hurdles and problems accomplished the task. He thanked the Joint Investigation Team and

Shahzad Akbar on behalf of the government and the masses. He expressed hope that the benefits of this inquiry would reach the sugar cane farmers and the consumers.

He said sugar price would be reduced as per cost of production assessed by the inquiry commission and recoveries would be made from those involved in illegal practices. To a question about delay in disposal of cases in the accountability courts, he read a couplet from his late father Ahmed Faraz’s poetry meaning, “one should play one's part without caring about others, having the same level of commitment”.

Meanwhile, the government Sunday decided to unban the inter-provincial transportation of wheat and abolish duties on import of the commodity in order to ensure its sufficient availability in the country.

Prime Minister Imran Khan took this decision in a high-level meeting and discussed the measures to cope with the country’s flour need and control the flour price. The meeting decided that the government would allow the inter-provincial transportation of wheat and remove all inter-provincial check posts.

The government would also allow the import of wheat through the private sector without any restriction on the limit. The meeting decided to abolish 60 percent regulatory duty, six percent withholding tax, and two percent additional tax on the import of wheat. It was decided that the government would curb the smuggling of wheat and flour and launch a huge crackdown on the hoarders.

The meeting also dilated on the volume of wheat crop in Punjab and Khyber Pakhtunkhwa, procurement by the provincial governments, available stock, and needs of the provinces. This waiver will also be applicable on the import of 0.5 million tons of wheat, already allowed by the ECC in March this year.