ISLAMBAD: The Competition Commission of Pakistan (CCP) has imposed a fine of Rs 44 billion on industry for what it noted in its decision ‘Collusion for jacking -up sugar prices”.
The commission said it considered all aspects of the case in detail and reached to the conclusion that sugar industry doea not have any dominance to distort the market . However, it maintained that during the proceedings it collected solid proof that the Pakistan Sugar Mills Association (PSMA) platform was used by the mills to exploit the market to dictate the trend for jacking- up sugar rates at higher level.
The commission released here on Friday said it raided two premises of PSMA to take its record and gadgets in custody for forensic anaylises to reach to the conclusion as if the industry indulged as an association in legal activities that fall under CCP domain for investigations.
The commission also noted in its findings that in the raids on PSMA premises it also took into custody the cell phones of the employees to anaylise the data. It claimed that after forensic anaylises of all the data taken into the custody during raids it became evident that PSMA got indulged into illegal activities through collusion among its members.
There are many points in the CCP order that may prove self -explanatory.
For example, when CCP says the telephomic conversations and anaylised data of the cell phones of PSMA members confirms collusion among them as they were discussing sugar in their telephones calls.
One can think for a minute how comes any telephonic conversation about sugar prices and date of crushing season can be called collusion.
All associations made under the law are supposed to have meetings and discuss their relecant subject.
CCP report itself noted that two of its members have divergent views and finally chairperson used casting vote to make the decision effective as majority decision.
CCP report may end -up at another litigation that may at the end prove as a futile exercise.
Taking strong exception to CCP decision, PSMA released its formal reaction on the issue to the media on Friday evening.
PSMA handout formally signed by its chairman , Iskander Khan, said CCP decision on sugar price hike was divided as its two members totally disagreed to the final decision . It said the two of the commission members disagreed to the commission to impose fine on industry as they did not considered the evidence strong enough for such an unfounded decision. PSMA said the chairperson’s decision of opting for casting vote is incorrect and it can be self-explanatory.
