Swept under the carpet: ECC shuts door to probe into substandard sugar import

Approves sale of remaining commodity despite doubts over its quality.

ISLAMABAD:

A sugar import scandal has been finally swept under the carpet as the Economic Coordination Committee (ECC) of the cabinet has given a clean chit to officials allegedly involved in importing substandard Indian sugar, in storage for the last two years.

According to sources, the ECC, in a meeting held on Tuesday, gave the go-ahead to disposing of 700 tons of imported sugar and did not allow investigation into the scam.

The ECC approved the sale after some of its members called for initiating a probe and fixing responsibility for delay in disposing of sugar imported in 2010. They stressed that officials, involved in importing substandard sugar and keeping it in storage for over two years, should be taken to task.

In response, some other members pointed out that a huge quantity of sugar had already been sold in the market and a small amount was left.

In a sugar sale tender, floated on December 25 last year and opened on January 11 this year, contract was awarded to the highest bidder. Therefore, ECC members said, the Trading Corporation of Pakistan (TCP) should be allowed to dispose of the commodity.



Sources recalled that in December last year the ECC, headed by former finance minister Dr Abdul Hafeez Shaikh, had launched a probe into the scandal, but at the same time permitted release of 700 tons of Indian sugar in the market.

Despite repeated attempts, Finance Minister Saleem Mandviwalla was not available for comments.

A TCP official claimed that test results showed that the Indian sugar was fit for human consumption. He said Utility Stores Corporation (USC) had stopped lifting the imported commodity after receiving supplies from domestic mills, adding this had caused delay in disposing of the imported sugar.

USC, in the December meeting, had refused to lift the imported sugar, complaining that the commodity contained high moisture content.

When pressed to lift the commodity, which was of Renuka brand, USC said it had stones and foreign particles and bags had no expiry date. It would be difficult to satisfy the consumers, who would not purchase the commodity, it said.

Defending the TCP, the commerce ministry told the ECC that laboratories of Pakistan Council of Scientific and Industrial Research (PCSIR) had conducted tests and declared in their report that the imported sugar was not harmful for human health.

Published in The Express Tribune, February 28^th, 2013.

Like Business on Facebook to stay informed and join in the conversation.