Six major groups including Tareen, Zardari, Sharif family commit fraud and manipulation

The federal cabinet on Thursday released a forensic report on the Chinese crisis. The report includes details of audits of mills of nine major groups in Pakistan.

According to the commission's report, Jahangir Tareen, a prominent PTI businessman, former ruling Sharif family, Chaudhry brothers of Gujarat, Federal Minister Asad Umar, Punjab, and Sindh governments have committed 'fraud and manipulation'. In a press conference with Information Minister Shibli Faraz, Special Assistant to the Prime Minister for Accountability Shehzad Akbar said, "It is clear from the report of the commission that the owners of sugar mills have cheated the common man and farmers and robbed them."  He said that the Prime Minister used to say that "those who are businessmen cannot be in government". This is a conflict of interest. In this regard, today is an important day in the history of Pakistan. Shehzad Akbar said that according to the commission report, Jahangir Tareen's JDW Mills was the largest sugar-producing group in Pakistan and that he had allegedly "illegally increased the maximum production capacity".

In this regard, Shehzad Akbar said that "in terms of production capacity, JDW has increased the number of violation of law by about eight to nine mills".  He said that the report has covered everything from sugar procurement to sugar exports.

After these allegations came to light, Jahangir Tareen said in a tweet that he was shocked to hear the kind of false allegations leveled against him. I have always done clear business. The whole country knows that I have always paid the full price to the farmer. I don't have two accounts. "

He said that he pays his taxes and will answer every allegation.

Senior PML-N leader Shahid Khaqan Abbasi has said that PML-N will respond after reading the report.  PML-Q leader Monis Elahi has said, "I have said before that I am not on the board or management of any sugar mill." I support the Commission's recommendations for legislation. "

The other figures named in the report have not yet commented.  According to Shehzad Akbar, the commission report alleges that the sugarcane farmers were constantly harmed and looted. Sugar mills have paid the price to the farmer at very low prices. When the mill owners bought sugarcane for less than Rs 140, the support price was Rs 190.  "After investigation, the price of sugarcane was increased when the government announced the formation of a commission," he said. According to Shehzad Akbar, "mill owners have abused the people and robbed them."  Shehzad Akbar said that according to the report of the commission, "mill owners have increased the production cost and according to the audit, there is an average difference of Rs 13 per kg in the price of sugar."  According to him, the commission says that in 2018, the price was fixed by the mills at Rs 52.6 paise while it used to be Rs 40.6 paise.  Explaining the details, Shehzad Akbar said that the mills had fixed the price at Rs 62 in 2019-20 while according to the commission, the price was only Rs 46 four paise. He said that according to the commission, the price has been shown higher in the papers by buying at a lower price. Mills have also shown their losses in this production cost. The Sugar Commission has not agreed with the position of the mill owners

According to Shehzad Akbar, the report of the commission said that there is a difference of Rs 12 to 13 per annum in the production price. The sugar crisis has been deliberately manipulated to the benefit of the mill owners and the people.

Shehzad Akbar spoke on the method of betting on delivery in the sugar market which has been written in detail by the commission. He said that due to the formation of Sugar Commission, businessmen have suffered in gambling and betting. If the investigation had not started, sugar prices would have risen.

Referring to the report, Shehzad Akbar said that even if four or five per cent was kept for Gana Garh, no information was given as to where the remaining 25 per cent went.

According to Shehzad Akbar, 1.7 million tons of sugar was not reported. The mill owners have two accounts. One is what is shown to the institutions and the other is to Seth how much has really benefited.

He said the commission's report stated that "anonymous transactions have taken place, which is a case of tax evasion." The mill owners are neither paying road development nor paying sales tax.

"All the mills have increased their crushing capacity," he said. Permission is required first. Different mills have increased the production capacity from 10,000 to 65,000, ie eight or nine mills have been set up without permission. In this regard, he has also mentioned the name of Jahangir Tareen.

Shehzad Akbar said, "In this way, these accounts have been fraudulent."

Shehzad Akbar has alleged that according to the report of the commission, the Sindh Chief Minister has given a subsidy of Rs 9.3 billion to benefit the Omni Group.

"In the last five years, a subsidy of Rs 29 billion has been given," he said. During this period, the mill owners paid income tax of Rs 52 billion, of which Rs 29 billion went to subsidies. Of this, Rs 12 billion was refunded and thus only Rs 10 billion in total income tax has been paid.

Shehzad Akbar said that sugar mills have established a monopoly at present. The Competition Commission has failed to break this cartelization. Some mills have been forensically audited. Six major groups that produce 51% sugar. According to him, the largest share of these mills, ie 20 per cent, belongs to Jahangir Tareen's JDW Mills Group. Recommendations on the violations will be made after Eid on the instructions of the Prime Minister.

According to Shehzad Akbar, it will also be decided which institution will take action against these mill owners against this fraud.

Shehzad Akbar said that according to the report of the commission, government institutions are currently being held hostage.

He said that Prime Minister Imran Khan had made it his responsibility to make recommendations on what kind of reforms should be introduced in the FBR, NAB, FIA, Competition Commission and other agencies. ...

It may be recalled that an inquiry report on the Chinese crisis has been published earlier.

The investigation alleged that Jahangir Tareen's 'JDW' Sugar Mills and 'JK Colony-II' were the most profitable during the year 2018-19. Is.

JDW produced a total of 640,278 tonnes of sugar out of which 121,621 were exported which constitutes 15.53% of the total exports. Jahangir Tareen received more than Rs. 56 crore subsidy from the government which is 22.52% of the total subsidy given.

Jahangir Tareen's JK Colony-II produced 70,815 tonnes of sugar and exported 1,000 tonnes and then got further subsidy on it.

The RYK Group, a close relative of Federal Minister Khusro Bakhtiar, exported 31.17 per cent sugar and received 18.31 per cent subsidy, amounting to over Rs 450 million.

Other companies include Almoys Industries and Thal Industry Corporation, which received 16.46 per cent of the total subsidy.

After the commission report came to light, Jahangir Tareen had given his position on Twitter saying that out of the subsidy of Rs 3 billion, Rs 2.5 billion was given to him in the last period of PML-N when he was in opposition.

"My companies exported 12.28 per cent of sugar and it accounts for 20 per cent of the market, while exports were on a first-come, first-served basis," he said.

Monis Elahi, while giving his position to the local media, said that he welcomes the report but he also clarified that he has direct shares in Rahim Yar Khan Mills but has no direct connection with the management of the mills.

According to the Commission of Inquiry report, other sugar mills seeking subsidy and export permits include Hunza Sugar Mills, Indus Sugar Mills, Fatima Sugar Mills, Hussain Sugar Mills, Sheikho Sugar Mills, Noon Sugar Mills, Joharabad Sugar Mills and Huda Sugar Mills. Are Photo

The inquiry report on the Punjab government said that the provincial government, under pressure, subsidized the sugar mills and the Economic Co-ordination Committee (ECC) allowed exports.

However, there is no mention in the inquiry as to under whose pressure the government of Chief Minister Usman Bazdar allowed subsidy and export to sugar mills.

According to the report, the subsidy was given to these sugar mills at a time when the prices of sugar in the local market were constantly rising.

According to the report, the sugar mills announced the closure of the mills under a regular plan and later bought sugarcane at cheaper prices but in the race for higher profits, its benefits could not be passed on to the people.