Evidence of collusion in sugar industry

KARACHI: Competition Commission of Pakistan (CCP) has found prima facie indications of collusive behaviour of sugar mills in the preliminary investigations, CCP Chairman Khalid Mirza said here on Friday.

Speaking at a press briefing, Mirza said that we are in the middle of an investigation and the raids were conducted on the three sugar mills and the preliminary investigations found out that it smacks of irregularities in the sugar price.

However, the situation would be cleared once the final report is completed under the directives of Supreme Court of Pakistan. He hoped that it would be finalised in the next two weeks and possibly be submitted during the next hearings.

CCP Chief, appeared cautious to talk openly and categorically on the sugar crisis and said that he would do his utmost to complete the task as assigned by the apex court and admitted that if it could not be done, it would definitely be "negligence" on his part.

When asked about the political pressures in conducting the investigations in the sugar scam, Mirza rejected the notion and stated: "There are always political pressures while carrying out my job. However in this particular case, there is no such thing".

About the sugar price fixation, Chairman CCP said that he would only suggest the Supreme Court what should the appropriate price be. Otherwise, price determination is not the job of CCP.

He further said that apart from investigations against sugar mills, CCP also issued a policy note in which Ministry of Industries was admonished for the sugar crisis.

About the compliance situation of cement industries regarding imposing the fine some time back, Khalid said that cement industries has 60 days to file an appeal against the decision of CCP and once the deadline expires, the next step would be taken.

He informed newsmen that the commission is carrying out studies on 15 to 20 cases to check whether fair competition is going on or some anti-competitive behaviours are being practiced in these areas.

Calling the country's competition commission law, the best in the world, Mirza pointed out that law is aimed at harnessing economic productivity and protecting consumer's rights.

He felt that for the implementation of competition law, financial autonomy, political will, an appreciation from the judiciary is must for the encouragement of the people and success against the cartels.

Mirza also spoke at length on the competition commission law, calling it the modern peace of legislation that has delivered in the last two years since its implementation.

source: dailytimes