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IHC allows govt to act against those held responsible for sugar crisis
In its short order, the IHC observed that the constitution of the commission and its report did not violate the fundamental rights of the petitioners. — Dawn/File
The Islamabad High Court (IHC) on Saturday dismissed a petition filed by leading sugar mill own
ers challenging the inquiry report of the commission constituted to probe the sugar scam, setting aside its earlier order that barred the government from taking action against those held responsible.
On June 11, IHC Chief Justice Athar Minallah had granted a stay order against the recommendation of the inquiry commission on the sugar scam that has called for registration of criminal cases against sugar mill owners.
The petition was filed by the entire sugar industry, including family members of PTI leader Jahangir Khan Tareen, opposition leader Shehbaz Sharif and federal minister Khurso Bakhtiar.
The petitioners had claimed that the probe report “exceeds the constitutional mandate and limitations of a Federal Commission of Inquiry constituted under the 2017 Act, as it trespasses into matters within the exclusive legislative and executive domains of provinces”.
In its short order, the IHC observed that the constitution of the commission and its report did not violate the fundamental rights of the petitioners. "The report was, therefore, lawfully considered by the federal cabinet," it said.
The order also said that the federal cabinet could not under the Consitution delegate functions and powers vested in the federal government, as had been previously decided by the Supreme Court.
In light of this, the federal cabinet's decision to delegate power to Special Assistant to Prime Minister on Accountability Shahzad Akbar was not in accordance with the law laid down by the Supreme Court, it said.
However, the court noted that the federal government had the power to send a reference to the National Accountability Bureau (NAB) under the National Accountability Ordinance, 1999.
"The learned attorney general [...] has stated that he would advise the competent authority to submit the proposed action(s) for the consideration of the federal cabinet. The federal cabinet after considering the proposed action(s) shall be at liberty to take such decisions as it may deem appropriate," it read.
Sugar probe report
The sugar inquiry commission had been constituted by the government in the first week of April following the release of two separate inquiry reports of the FIA on the issue of artificial shortage of sugar and wheat in the country and sudden increase in their prices last year.
The inquiry report on sugar had revealed names of many bigwigs, including Tareen, the former secretary-general of the ruling PTI and a close confidant of the prime minister, who had allegedly benefitted from the crisis.
After the release of the report, the opposition had demanded that the premier take stern action against those who had been declared responsible for the crisis by the FIA committee.
Prime Minister Imran Khan had vowed to take action, but said he would do so after receiving the forensic audit report from the commission that he had constituted on the recommendation of the ‘initial’ reports.
Last month, the government had made public the inquiry report, which blamed key political figures and government functionaries for wrongdoings within the industry. Among those implicated by the commission are Tareen and PML-Q MNA Moonis Elahi.
The commission was critical of the role of Planning and Development Minister Asad Umar, Adviser to the Prime Minister on Commerce and Industries Razak Dawood and Punjab Chief Minister Usman Buzdar on the issue of sugar export subsidy as they failed to satisfy the commission.
These three key government functionaries and former prime minister Shahid Khaqan Abbasi had appeared before the commission and recorded their statements on the issue of grant of sugar subsidy.
The commission, which was formed to probe the recent sugar crisis in the country, observed that during 2017-18, Rs10.7 per kg subsidy was granted by the Economic Coordination Committee (ECC) of the cabinet only for export of two million tonnes of sugar (Sindh was granted an additional subsidy of more than Rs4bn). A decrease of Re1 per kg of subsidy meant saving of more than Rs2bn.
Even if observations of the Finance Division were to be ignored and only adjustments of Rs5.10 per kg considered, this would have saved more than Rs10bn. The major export subsidy was availed after January 2018. Therefore, timely intervention could have saved billions of rupees for the national exchequer.
According to the report, Pakistan exported more than four million tonnes of sugar over the past five years and more than Rs29 billion had been given to sugar mills in terms of export subsidy.
“Exporting sugar with subsidy means that we are exporting on international rates which are lower than the cost of production claimed by sugar mills and the differential cost is being paid from the taxpayers’ hard-earned money,” the report said.
In its short order, the IHC observed that the constitution of the commission and its report did not violate the fundamental rights of the petitioners. — Dawn/File
The Islamabad High Court (IHC) on Saturday dismissed a petition filed by leading sugar mill own
ers challenging the inquiry report of the commission constituted to probe the sugar scam, setting aside its earlier order that barred the government from taking action against those held responsible.
On June 11, IHC Chief Justice Athar Minallah had granted a stay order against the recommendation of the inquiry commission on the sugar scam that has called for registration of criminal cases against sugar mill owners.
The petition was filed by the entire sugar industry, including family members of PTI leader Jahangir Khan Tareen, opposition leader Shehbaz Sharif and federal minister Khurso Bakhtiar.
The petitioners had claimed that the probe report “exceeds the constitutional mandate and limitations of a Federal Commission of Inquiry constituted under the 2017 Act, as it trespasses into matters within the exclusive legislative and executive domains of provinces”.
In its short order, the IHC observed that the constitution of the commission and its report did not violate the fundamental rights of the petitioners. "The report was, therefore, lawfully considered by the federal cabinet," it said.
The order also said that the federal cabinet could not under the Consitution delegate functions and powers vested in the federal government, as had been previously decided by the Supreme Court.
In light of this, the federal cabinet's decision to delegate power to Special Assistant to Prime Minister on Accountability Shahzad Akbar was not in accordance with the law laid down by the Supreme Court, it said.
However, the court noted that the federal government had the power to send a reference to the National Accountability Bureau (NAB) under the National Accountability Ordinance, 1999.
"The learned attorney general [...] has stated that he would advise the competent authority to submit the proposed action(s) for the consideration of the federal cabinet. The federal cabinet after considering the proposed action(s) shall be at liberty to take such decisions as it may deem appropriate," it read.
Sugar probe report
The sugar inquiry commission had been constituted by the government in the first week of April following the release of two separate inquiry reports of the FIA on the issue of artificial shortage of sugar and wheat in the country and sudden increase in their prices last year.
The inquiry report on sugar had revealed names of many bigwigs, including Tareen, the former secretary-general of the ruling PTI and a close confidant of the prime minister, who had allegedly benefitted from the crisis.
After the release of the report, the opposition had demanded that the premier take stern action against those who had been declared responsible for the crisis by the FIA committee.
Prime Minister Imran Khan had vowed to take action, but said he would do so after receiving the forensic audit report from the commission that he had constituted on the recommendation of the ‘initial’ reports.
Last month, the government had made public the inquiry report, which blamed key political figures and government functionaries for wrongdoings within the industry. Among those implicated by the commission are Tareen and PML-Q MNA Moonis Elahi.
The commission was critical of the role of Planning and Development Minister Asad Umar, Adviser to the Prime Minister on Commerce and Industries Razak Dawood and Punjab Chief Minister Usman Buzdar on the issue of sugar export subsidy as they failed to satisfy the commission.
These three key government functionaries and former prime minister Shahid Khaqan Abbasi had appeared before the commission and recorded their statements on the issue of grant of sugar subsidy.
The commission, which was formed to probe the recent sugar crisis in the country, observed that during 2017-18, Rs10.7 per kg subsidy was granted by the Economic Coordination Committee (ECC) of the cabinet only for export of two million tonnes of sugar (Sindh was granted an additional subsidy of more than Rs4bn). A decrease of Re1 per kg of subsidy meant saving of more than Rs2bn.
Even if observations of the Finance Division were to be ignored and only adjustments of Rs5.10 per kg considered, this would have saved more than Rs10bn. The major export subsidy was availed after January 2018. Therefore, timely intervention could have saved billions of rupees for the national exchequer.
According to the report, Pakistan exported more than four million tonnes of sugar over the past five years and more than Rs29 billion had been given to sugar mills in terms of export subsidy.
“Exporting sugar with subsidy means that we are exporting on international rates which are lower than the cost of production claimed by sugar mills and the differential cost is being paid from the taxpayers’ hard-earned money,” the report said.
