The Competition Commission of Pakistan (CCP) has asked Pakistan Sugar Mills Association (PSMA) and 55 sugar mills to pay within two months the Rs44bn fine they have been slapped with. However, there are indications that the association and the mills would be able to escape the fine which is being dubbed as historical.
The CPP has imposed a fine of Rs44bn on the PSMA and 55 sugar mills after year-long investigation into sugar crisis that hit the country in 2019 and permanently raised sugar prices. The CPP has held a total of 81 sugar mills responsible for cartelization and plans to announce fine for 26 mills after determining their turnover. The total fine could be as high as Rs60bn.
The 186-page ruling (PDF), however, was a split 2-2 decision with the chairman and another member supporting the fine and the other two members opposing it. The chairman had to use his administrative vote to break the tie, the CCP said in a statement.
The two members who opposed the fine also wrote dissenting notes.
Sugar mills owners are planning to benefit from the split decision, it has emerged.
Reacting to the decision the PSMA has said that the CPP ruling was neither unanimous nor on majority votes. It noted the fact that two of the member had given dissenting opinions.
The PSMA also underscored that the chairman CCP had used his administrative powers to break the tie. It said the chairman’s decision to use his administrative vote had raised a legal question. The association claimed that the chairman did not have the authority to use such administrative vote while presiding over legal proceeding.
from SAMAA https://ift.tt/3yPmgBO
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