Arrest of steel pipe makers shocks businessmen

LAHORE: The business community has said that the registration of cases against steel pipe manufacturers for alleged involvement in the plunder of Pakistan Steel Mills is an attempt to divert attention of the authorities from the big fish behind the scam.

In a statement, Lahore Chamber of Commerce and Industry Acting President Ijaz A Mumtaz said the steel pipe manufacturers are genuine businessmen who are paying taxes worth billions of rupees. “It seems that they were being made scapegoat to ensure a safe passage to the black sheep who committed wrongdoings against the steel mill.”

He said the steel pipe manufacturers were not commercial dealers and they purchased raw materials at prices quoted to them. “So there is no point in any sort of purchases below the prescribed rates.”

Mumtaz urged the government to intervene into the matter, enabling people attached with the steel sector to do their businesses with peace of mind.

Reacting to the case, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said the arrest of two leading businessmen for suspected connivance with the Steel Mills has come as a shock.

FPCCI President Sultan Ahmed Chawla said the business community feels that this is an ill-advised move and will gravely hurt the already worsening business environment of the country.

He said if there is any evidence of corruption on the part of these businessmen it should be made public along with proof and “we will fully cooperate with the government to bring them to book and get them punished.” He said “many people feel that they are being made scapegoat for the sins committed by others.”

Published in The Express Tribune, July 20^th, 2010.