FIA forms 11-member team to investigate sugar mafia

ISLAMABAD: The Federal Investigation Agency (FIA) on Friday constituted an 11-member inquiry team to investigate sugar mills based on the findings of the Sugar Inquiry Commission report.

The prime minister has instructed the Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP) and FIA to launch an investigation in light of the sugar inquiry commission report.

The team will be headed by Director FIA Islamabad Zone Dr Moeen Masood and comprise of representatives from Customs, FBR, and State Bank of Pakistan (SBP). The team will investigate the matter of illegally exporting sugar to Afghanistan and find evidence regarding money laundering.

On July 27, Prime Minister Imran Khan had instructed authorities to launch a crackdown against sugar mafia. He had also directed the FBR to conduct an audit of all sugar mills across the country.

In this connection, Special Assistant to Prime Minister on Accountability Mirza Shahzad Akbar has forwarded a letter to Governor SBP, Competition Commission of Pakistan, and the governments of three provinces. The government has directed the departments to launch an investigation and a report should be submitted within 90 days.

The Sugar Inquiry Commission Report mentioned how the amount of sugar exported to Afghanistan is routinely inflated to show that 75 tonnes of the commodity was being exported per truck, while the maximum capacity of a truck does not exceed 30 tonnes.

The scam is used for laundering money because if the sugar is being exported to Afghanistan, the payment should also be coming in from the same country. However, the commission found out that sugar mill owners receive telegraphic transfers for payments of sugar sold to Afghanistan from the United States and Dubai, implying that the money was being laundering.