ISLAMABAD:
The nation will probably never know the names of those who made billions out of the sugar price scam of 2009 as a judicial commission could not complete its investigation in absence of much-needed financial resources.
Justice (retd) Sardar Raza Khan, who was the sole member and head of the commission, quietly tendered his resignation almost 15 months ago after he got the ‘cold shoulder’ instead of a helping hand from the government, according to people close to Khan.
Khan, who was supposed to submit an inquiry report to the prime minister in 45 days, submitted the resignation on August 19, 2011 in a letter addressing former prime minister Yousaf Raza Gilani.
Known for his integrity that earned him respect in all walks of life, Khan could not convince the finance ministry to allocate resources for the smooth functioning of the commission, these sources said. It took him five to six months just to get an office and some staff.
Ironically, he has so far not even received the confirmation that his resignation has been accepted.
In 2009, according to reports at that time, influential and politically-connected sugar mill owners as well as hoarders sparked an artificial crisis, sending sugar prices soaring. An inquiry report prepared by the Competition Commission of Pakistan – the anti-competition watchdog – also established the existence of a cartel in the sugar industry.
The judicial commission was constituted in January 2011 after the ruling Pakistan Peoples Party (PPP) and the main opposition Pakistan Muslim League-Nawaz (PML-N) reached a consensus. Both the parties held negotiations on a 10-point economic reforms agenda, presented by the PML-N, and probe into the sugar scam was part of it.
However, the commission could not get funds or a designated bank account, which it said should be under the control of the finance ministry to ensure transparency. The money was needed to pay for travel expenses of witnesses coming from other cities to appear before the commission to record their statements.
Some officials attributed the fiasco to lack of interest from both the PPP and PML-N. The situation was further aggravated by sympathisers of the sugar mafia in government circles.
According to a notification issued by the law ministry, the commission was required to fix responsibility and recommend action against those responsible for omission and commission. It also had to recommend effective measures to prevent such incidents in future which involved corruption, corrupt practices, price hike, hoarding, scarcity, profiteering and heavy cost to poor people.
The commission started work in May-June last year and recorded statements of over two dozen witnesses. These witnesses were from Islamabad who did not require any travel allowance and a couple of volunteers came from Lahore and Karachi.
According to knowledgeable people, the witnesses helped the commission understand the working of the industry, but the body was nowhere near conclusion.
When it contacted people who had direct stakes in the sugar price scam, they asked their travel expenses should be borne by the commission, which according to the officials was a lawful demand.
Sources said the head of commission wrote many letters to the finance ministry, but it did not even respond to a single letter.
Ironically, when the commission was asking for funds, the finance ministry was busy in heavy spending. This was the year when the prime minister spent roughly Rs5 billion over and above his discretionary development budget and the government paid Rs45 billion in fertiliser subsidy.
Power sector subsidies, mainly on account of inefficiency and bad governance in power distribution companies, swallowed close to Rs500 billion that year.
Published in The Express Tribune, November 11th, 2012.
COMMENTS (13)
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@Faisal: its not indo Pak only but corruption happens everywhere. However, in west they have far better checks. Here govt and opposit MPs form collusion and poor voters have no choice. They either sell there vote or give to tribal elders.
@Asad: You forgot to add ANP, MQM, JUI-F, PML-Q.
That is the problem that if Justice (R) Saradar Raza wanted to investigate; would anyone had provided him with relevant details/records? Either you have investigating organization like NAB or FIA who are either biased or good for nothing and if you appoint an independent honest inquiry officer he fears his own inquiry & transfer/posting etc.
Look at the moral value of the Ex-Prime Minister who accepted resignation without asking reason or appointing a new Inquiry Officer.
Cool we will vote for PPP and PML-N and keep paying higher price for everything we are a true genius nation.
When more than 80% of the sugar mills are owned by members of the assemblies and sitting politicians , what does one expect.
Approx. all sugar mills owners are sitting in NA or PA. I don't think such type of invetigations are gona serve the purpose. You can't take action unless you remove them from their seats. This is we who vote such corrupt people whole tenure they are looting us and again they appear infornt of us when their tenure is over. strong textWake up now!!! People of Pakistan. Support Imran Khan.
This system of corruption is not new in subcontinent, it has been running here for last 200 years. Indo Pak nation is corrupt as a hole. Their people want corruption as they are corrupt themselves. These looted Billions are only peanuts which appear in news.
The fotograf and the first few lines say it all. The occupants of the NA and PAs know every trick, calumny and deceit to create discomfiture for the citizens and put the country on hold from going ahead in life. Why because they want to perpetuate their odious feudal ways. The Ephedrine Scam has politicians from the PPP and PML N involved and the last two lines are a dismal and brazen revelation of what is being done by these horse and cattle thieves. Salams
"Power sector subsidies, mainly on account of inefficiency and bad governance in power distribution companies, swallowed close to Rs500 billion that year."If one goes through the budget allocation of 2012-13 Rs. 186 billion `only has been allocated for power subsidy whereas this year too it was Rs. 500 billion and in current yer too it will not be less than thast of previous year. this will widen the budget deficit and direct financing from SBP ( printing of Notes) will increase inflation.
No wonder the involved people live the life of extreme wealth when the country is rife with extreme poverty. They flout the rules and then change the laws so the flouting becomes legal. I sometimes wonder if the cabinet sits only to decide how to divvy up the various government tenders and subsidies.
Scam survives because "connected" Elites made sure it would never be investigated by having government "friends" deny funding!!! What is sugar good for in Pakistan, besides making "suckers" out of the public!