Should This Man Be Smiling?

[Lahori paa jee]

Opposition for forensic probe: Stock market crash

Opposition leaders and parliamentarians have called for forensic investigation into the stock market crashes and threatened to move the Supreme Court if the government did not take any action against those involved in the scam that led to the loss of billion of rupees of investors.

Former Prime Minister Benazir Bhutto in a statement, issued by the Pakistan Peoples Party media office here Sunday, called for a forensic investigation into the manipulation of the stock market.

She lauded the National Assembly standing committee on finance and revenue for highlighting the corruption of the regime by investigating the stock market crashes.

The former prime minister cited the statement of the former chairman of the Securities and Exchange Commission (SECP), Dr Tariq Hassan, who indicated corruption in a white paper on the manipulation of the stock market.

“The National Accountability Bureau is abusing its office and squandering billions of rupees in a political witch-hunt while corruption flourished in the country and poverty increased with unemployed persons killing themselves for want of food”.

The former prime minister said that the guilt of the Musharraf regime was evident from the failure to act when the former SECP chairman was removed for seeking action against those connected to March 2005 stock exchange crash because they were close to the regime.

Dr Hassan claimed on Friday last claimed that he was removed from office for taking the decision to appoint forensic investigators to probe 11 high-profile brokers suspected for their involvement in the Karachi Stock Exchange crash.

Deposing before the members of the National Assembly standing committee on finance and revenue, the former SECP chief said that the brokers had access to the prime minister. In his letters he had mentioned the names of Minister of State on Finance Omar Ayub Khan as well as the Prime Minister’s adviser on privatisation Dr Salman Shah.

It may be noted that the sale of Steel Mills at a throwaway price was stopped by the Supreme Court which noted omissions and commissions in its sale and that the rules and procedures were not properly followed.

Despite the Supreme Court verdict, the NAB refused to arrest government members who were behind the sale as required by NAB law.

The stock market manipulation scandal follows the accusations of corruption in the Steel Mills as well as manipulation of sugar prices by the sugar barons who are influential in the Musharraf regime.

Ms Bhutto said the opposition members had demanded the resignation of the prime minister against whom a vote of no-confidence was threatened following the Supreme Court’s decision stopping the controversial sale of Pakistan Steel Mills.

The opposition members also called for prime minister Aziz’s resignation for his alleged links with some brokers. He is accused of protecting the suspect brokers through abuse of office stopping the former SECP chairman from taking action against manipulators and for sacking him when he initiated reforms.

The opposition noted that during Shaukat Aziz’s era, first as finance minister and later as prime minister, the stock market crashed in 2000, 2001, 2002, 2005 and May 2006.

PML-N: The Pakistan Muslim League-Nawaz information secretary Ahsan Iqbal said investigations into stock market crisis had proven involvement of highest level functionaries of government in this mega scam.

“The statement of former SECP chief before National Assembly standing committee is an indictment against the government”, he said in a statement here Sunday.

According to government’s own estimates the scam cost nation over Rs800 billion hitting the small and medium investors drastically.

“After Steel Mills scam the involvement of senior-most government office holders in this scandal belies the claims of Gen Musharraf that his government has eliminated corruption at high level”.

“It is very unfortunate that all these multi-billion-dollar scandals are too insignificant to grab attention of NAB, which shamelessly pursues accountability of junior government functionaries for embezzlement of meagre amounts”, Mr Iqbal said.

Therefore, the opposition has decided to move a no-confidence motion against Musharraf regime after July 31, he said.

The comments of Gen Musharraf in a meeting with Q League parliamentarians violate constitution and Election Commission’s Code of Ethics, he maintained.

“How can there be even an iota of fair and free election under Gen Musharraf when he has made his intentions and preferences known so openly. It is very disgusting to read the report that the said meeting was conducted by an intelligence agency chief. It is very clear now that if Gen Musharraf conducts elections the country will plunge into a deeper political crisis. Pakistan needs fair, free, and non-controversial elections to achieve political stability.

“It is time to think about Pakistan’s interest rather interest of Musharraf. Those government functionaries who are planning rigging of elections are guilty of treason and unconstitutional acts”, Ahsan Iqbal said.

Online adds: Meanwhile member National Assembly standing committee on finance and revenue Mujeeb Pirzada has said that the opposition will move Supreme Court if the government not takes action against brokers involved in the stock market crash.

Talking to newsmen here on Sunday, he noted that Rs16 trillion of ordinary investors lost in stock market crash.

The PPPP legislator said that the government should doubly fine those involved in stock market crash and not to allow them to do business again.

He said that the brokers involved in the KSE crash have been pointed out in the task force report adding, Arif Habib is the head of persons involved in stock market crash and rest of persons are Aqeel Karim Dedi and Jehangir Siddiqui.

Source

The stock exchange crash is such a big issue that Shaukat Aziz can lose his post. It may give Mush a reason to get rid of Mr. Aziz

 

[Lahori paa jee]

Court stops Pakistan Steel Mills privatisation

Pakistan's Supreme Court on Friday blocked the sale of Pakistan Steel Mills (PSM), the country's biggest steel producer, to a Russian-led consortium in an another setback to the country's privatisation process.

The privatisation was referred to the Supreme Court after a petitioner said the plant was a "strategic asset" that was being sold to the consortium in haste at a throw-away price.

The consortium, made up of Russia's Magnitogorsk Iron and Steel Works Open JSC, Saudi Arabia-based Al-Tuwairqi Group of Companies and Pakistani firm Arif Habib Securities, made a bid of $362 million for a 75 percent stake in Pakistan Steel Mills at an auction on March 31.

The consortium paid 16.8 rupees per share to take control of Pakistan's only integrated steel manufacturing plant.

"The process of privatisation of Pakistan Steel Mills Corporation stands vitiated by acts of omissions and commissions on the part of certain state functionaries reflecting violation of mandatory provisions of law," the Supreme Court said in a decision.

The court said the valuation of the project and the final terms offered to the consortium had been adversely affected.

"The letter of acceptance dated March 31, 2006, and the share purchase agreement dated April 24, 2006, are declared as void and of no legal effect," the court said.

The court said the case should be sent to the Council of Common Interests, a constitutional body that considers matters of national interest.

Pakistan's privatisation programme has gone far from smoothly and the government has had to abort several sales.

The biggest privatisation of all, the $2.6 billion sale of a controlling 26 percent stake in Pakistan Telecommunication Co Ltd, was renegotiated after Emirates Telecommunications Corp (ETISALAT) said it needed more time to pay.

RAISING QUESTIONS

Arshed Arif, director at the Khadim Ali Shah Buhkari & Co brokerage, said Friday's court decision raised questions about the credibility of the privatisation process and would lead to delays.

"The court decision revealed that the privatisation process, as claimed by the government, is not at all transparent," Arif said.

"It will definitely delay the privatisation of big tickets like PSO (Pakistan State Oil) and ODGCL (Oil and Gas development Co Ltd)," he said.

"But still, in my opinion, it's beneficial for the country. It will stop the government throwing away national assets at throw-away prices," he said.

Pakistan Steel Mills plant was built by the Soviet Union and industry officials say it will need significant investment to become more competitive.

The Pakistan Steel Mills plant, 30 km (20 miles) southeast of the city of Karachi, has an annual designed production capacity of 1.1 million tonnes.

Source

I feel this is enough to prove my point. Mushy is in deep trouble these days.

 

[Lahori paa jee]

An insight into sugar crisis

THE tussle between sugarcane producers and mills, for the last couple of years, has adversely impacted consumers. The government has not succeeded in overcoming the problem. The rift has led to a mistrust between the mills and the government. The government has not been able to persuade mill-owners to release their stock.

The likely gap between the requirement and the availability (production plus carryover stocks particularly in the private sector) was not correctly assessed , for the authorities do not have the mechanism to accurately estimate cane and sugar production.

Other factors which contributed to the current situation are: Absence of clarity of the government to implement the so-termed ‘indicative price’ policy; it perhaps does not realize the implications of a ‘free-market’ policy advocated by the international aid agencies under local environment and the cartelization; all this has resulted into a continued sugar crisis.

To investigate its causes, the National Accountability Bureau (NAB) and the Central Board of Revenue (CBR) had to abandon their efforts because of a pressure from the higher authorities.

To find a workable solution, it is necessary to analyse problems and complaints of stakeholders - mainly of growers and mill owners, and efforts should be made to solve these. Cane growers’ grievances are:

i) Mills do not start ‘crushing’ cane according to the Sugar Factories Control Act 1950 which stipulates that it should begin in the second week of October, or so. Mills usually commence the process late, at times as late as by the end of November or early December.

ii) Mills don’t issue ‘indents’ in time while growers have to struggle hard to get these indents.

iii) Growers have to wait for hours, for the whole day or beyond, even if they take the produce to mills on time. Remaining away for long hours is troublesome as they have to tend to their livestock for feed and water. There also is a security concern for family and residence.

iv) Farmers complain of the common under-weighing practice.

v) Unwarranted deductions made from the weighed produce are disadvantageous for sellers.

vi) There is an inordinate delay in cane payments. At times such delays extend beyond the crushing season and quite often these are affected in the following season and even thereafter.

vii) The funds created by levying percentage on the sale from farmers are not used for research, development and on the improvement of market infrastructure.

viii) There is a tendency among mill owners of not purchasing the produce directly from growers but through the middleman, for which they pay in cash but at a discounted rate.

ix) Crushing also continues late i.e., by the end of February or the beginning of March. The land occupied by sugarcane becomes available for wheat late which impacts its per hectare yield, as well.

The complaints of mill owners against cane growers are as follows:

i) Varieties grown by farmers have low recovery in relation to weightage, e.g., variety CO1148, commonly grown by farmers. The price paid to sellers is not related to the sucrose content as they pay the support (or indicative price) even if sugar content is lower than the base – 7.5 per cent.

ii) Cane brought to mills is not properly ‘stripped’ and dry leaves are left with the sticks. This not only adds to weight but also creates problem during the crushing process.

iii) The material used for binding canes into bundles cause problem during the crushing process.

iv) With an increasing tendency of farmers for ‘gur’ making, the supply of sugarcane to mills is adversely affected. The permission to allow ‘gur’ exports adds to the problem.

In may view, the sugar crisis can be averted if the following recommendations are considered:

i) Should sugarcane cultivation be encouraged or not, as this is a high irrigation demanding crop? The policy in this respect should be clearly stated.

ii) Would the government like to have a support (or indicative) price programme for cane? If so, how would it be implemented? At present, no clear procedure seems to have been laid down.

iii) In case the support (or indicative) price programme is to be implemented, the government should be prepared to buy sugar from mills at a predetermined price if the market price goes below this level.

Such a price would be based on the fixed price of cane which the mills buy from farmers. (This exercise can be conveniently done by APCom as it did so some year years back). Such a course of action was in force in the 1980’s. The government may incur losses in some years and earn profits in others, depending on the market situation. But in longer run, losses and profits would equalize. This will safeguard the interests of grower, mills and the consumer.

iv) The experience of ‘free-market’ mechanism as advocated by international aid organizations have not worked under our local conditions. The examples of wheat, cotton and sugarcane prove this. In fact, the occurrence of such failures adversely affects the popularity of a government.

v) As in the past, there should be a ‘Sugar Board’. The minister of food and agriculture should be the Chairman and the minister of industries/commerce as co-chairman. The provincial governments and all stakeholders should be the members of this Board. It should at least meet twice a year and lay down the policies which should be accepted at all government levels, to resolve the issue that any of the stakeholders brings up in the Board.

vi) The government should set up a Committee which should meet as frequently as required, to get an idea of the size of the crop which can help it to plan export/import programme. This Committee should be headed by an independent person, whether from public or private sector, who does not have any role in cane or sugar production, but in any case a minister/minister of state or secretary of the relevant ministries should not head this Committee to avoid any bias..

vii) The farmer should be paid according to the quality of cane, measured in terms of sucrose content. ‘Core-sampler’ system can be adopted which at one time was taken-up by the Thatta Sugar Mill and Abadgar Sugar Mill. But as mills did not get the same profit as they used to get prior to the adoption of such a system, they gave it up. The Kamalia Sugar Mills was also keen to initiate the adoption of this method of determining the price, but following the example of the Thatha Sugar Mills, it gave up the idea. Many countries of the world are using this method for payment to farmers, successfully.

viii) Despite the government announcement that no new sugar mills will be set up in the country, particularly in cotton growing areas, the influential people are reported to be setting up four new mills in Punjab - one in the D.G. Khan district. As the existing mills are operating on less than 50 per cent of their capacity, there is no justification in allowing new mills. This proposal has to be seen in the light of water shortages, the country is to face in the years to come.

Source

 

[Lahori paa jee]

And please go through the links also


NAB to prosecute price hikers: Sugar crisis, oil prices

Probe into sugar crisis

NAB becomes sweet to sugar mafia

How to fight rising prices?

 

[KashifAsrar]

Coming back to topic.
Mush has done some excellent jobs for Pakistan around 9/11. But recently he looks more of a puppet of Bush than any thing else.
And yes, I agree that a civilian leader might have erred a lot, particulalry around 9/11 time. Also Mush is doing a great job in making Pakistan a country of science and technology, actually the only way, Pakistan can come out of the dragnet US of A. Moreover, economy another great factor for devlopment, is improving fast. So over all card of performance of his is quite good, apart looking very meek and submissive when dealing with Uncle SAM.
Kashif

 

[Lahori paa jee]

Kashif,

This scandal of privatization of Pakistan Steel Mills and the stock market crash are such big issues that they will haunt Mush, Aziz and there government for years to come. NS and BB have many cases against them but non has been proved so far. On the other had PSM privatization was taken up by the supreme court and government was found to be involved in big ghaplas

Would like to bring Mr. Awais Leghari to the notice of my fellow members. He is the son of Farooq Ahmed Khan Leghari (Former President of Pakistan.............just to remind Mr. Farooq Leghari was involved in Mehran bank scandal............God knows what that was). And as the saying goes "Like Father, Like Son" Mr. Awais has done his share of the damage too. He ordered the privatization of PSM in one months time during which he was only the caretaker of privatization commission. This is against the law. Care takers dont have the power to handle such important issues.

 

[Lahori paa jee]

Over Rs1.2bn bungling in defence services: AGP report 2003-04

The auditor general of Pakistan (AGP) in its report for the year 2003-04 has detected several incidents of mismanagement, irregular payments and non-recovery of dues worth over Rs1.21 billion in the accounts of Defence Services and the Military Land and Cantonments Department.

According to the report, the highest irregularities worth Rs780.204 million were found in the accounts of Military Land and Cantonments Department followed by Rs188.416 million in Military Engineering Service (MES) and Rs103.529 million in Pakistan Army.

The report finds mismanagement of Rs81.021 million in the accounts of Pakistan Air Force, Rs54.031 million in Pakistan Navy and Rs7.592 million in the accounts of Director General Defence Procurement.

The AGP observes that “in a number of cases, contract conditions were not followed resulting in overpayments and irregular payments to contractors and expenditure was incurred without budgetary provisions on construction of various residential buildings.”

Moreover, “approval of the government for use of military buildings or lands for the purpose other than specified was also not obtained.”

It says significant overpayments were made in respect of pay, pension and allowances.

The report also points out non-recovery of cantonment taxes and other charges worth over Rs500 million by various cantonment boards. As per record of Cantonment Board, Murree, Chinar Public School was constructed by army authorities on 9.253 acres. Neither property tax was levied by the cantonment board nor recovery of property tax was made from January 1992 to June 2003. An amount of Rs22.901 million was recoverable from the school management.

In another case, army took over Alpine Bakery Complex in Murree which is being run on a commercial basis without paying any rent to the cantonment board, thus Rs678,674 was outstanding against army authorities as rent of the complex.

Similarly, it says, a big shopping centre, “Chinar Plaza”, was constructed by the management of Army Public School for commercial use on a piece of land measuring 4,077 square-feet belonging to the Cantonment Board, Murree. No property tax, however, was imposed by the board resulting in non-recovery of Rs660,068 as property tax from 1992-93 to 2002-03.

As per record of Cantonment Board, Multan, 23 properties held on residential lease were being used for commercial purposes. Neither sanction from the competent authority was obtained nor payment of premium was made by the users. An amount of Rs122.94 million was recoverable on account of premiums only on the basis of rates approved by the cantonment board. The report points out that lessees of 85 properties changed their residential buildings into commercial units in the limits of Cantonment Board, Nowshera, without obtaining fresh commercial leases. An amount of Rs60.77 million was recoverable on account of premium, development charges and ground rent.

Over the years, the report says, the land meant for active military use was being utilised for commercial purposes by construction of shops, markets, cinemas, poultry farms and petrol pumps without government sanction. It says that A-one military lands were also being leased out for agricultural purposes. “Neither the premium/rent of the land was being paid to the government nor was the income earned being deposited in government treasury.”

Quoting the rules, the report says that “all receipts from land entrusted to the management of the Military Estate Office shall be credited in full to the federal government and all expenditure on or income from land entrusted to the management of the military authorities is to be debited or credited, as the case may be, to the central revenues.”

http://dawn.com/2006/08/21/nat24.htm

This is just the beginning. Only time will tell the true corruptions during Mush's rule

 

[Skeptic786]

Kashif,

This scandal of privatization of Pakistan Steel Mills and the stock market crash are such big issues that they will haunt Mush, Aziz and there government for years to come. NS and BB have many cases against them but non has been proved so far. On the other had PSM privatization was taken up by the supreme court and government was found to be involved in big ghaplas

Would like to bring Mr. Awais Leghari to the notice of my fellow members. He is the son of Farooq Ahmed Khan Leghari (Former President of Pakistan.............just to remind Mr. Farooq Leghari was involved in Mehran bank scandal............God knows what that was). And as the saying goes "Like Father, Like Son" Mr. Awais has done his share of the damage too. He ordered the privatization of PSM in one months time during which he was only the caretaker of privatization commission. This is against the law. Care takers dont have the power to handle such important issues.

Steel mill privatization should not be described as a scandal. The proper discription for it is.....Pakistan's history's biggest and most daring robbery attempted. I will post a thread on it.

 

[sigatoka]

1. Imran Khan is definitely a good option for your country if he is democratically elected, I have heard his thought too, I think he is all together a different bread, he will be a huge motivation factor for the young generation of Pakistani. He could be even more moderate then Mushy, because he is so different class and back ground, his priorities would be more improvement on internal policies like education & commercial development, and foreign relation.

1. Imran Khan had been a great cricketer and a fine face of Pak. but apart from that he hasnt achieved much. A playboy in the prime of his life and presiding over a shattered marriage with his children constantly being shuttled between him and his wife. A man who cant run his family, what hope does he have of running a nation of 160 million?

 

[sigatoka]

1. The Government should keep the major national mills under government control.

2. Corporate greed destroys everything.

3. Gov. can keep running mills even though they report losses,

4. corporates fire employes at the first hint of a loss.

1. Why?

2. Corporate greed/efficiency creates wealth that raises the standard of living of the nation. It is then up to the nation to decide how to use the wealth, whether in poverty elimination or tax cuts to the rich.

3. Which is terrible because it represents economic waste. When its running at loss, it means Pak. taxpayers are paying to help run a bleeding business. There is no free lunch. Why not use the money that govt. subsidizes mill from taxes to build more cancer hospitals?

4. By running a business with the least amount of workers possible means that labour is freed up to be engaged in other areas of the economy. This is a cause of celebration (however there will be short term costs as these people go finding new jobs)

 

[sigatoka]

1. There were even news about some indian business men acquiring shares in the mills and were talking part in purchase of the mill few months back.

1. This is great news because when conflict breaks out Pak. can acquire mill for free by expropriating Indian investment for nothing. Whats wrong with this Jana?

 

[Lahori paa jee]

Steel mill privatization should not be described as a scandal. The proper discription for it is.....Pakistan's history's biggest and most daring robbery attempted. I will post a thread on it.

Thank God at last i have someone on my side. Hope to hear more from you.

over to psm privatization thread

 

[Neo]

Friday, October 13, 2006

Musharraf ‘most popular leader’: Azeem

LAHORE: State Minister for Information Tariq Azeem on Thursday dubbed President Pervez Musharraf as the “most popular leader” of Pakistan, while Pakistan People’s Party (PPP) Senator Babar Awan said the president could not win a councillor’s seat without uniform.

Speaking on Geo television’s Capital Talk programme, Azeem said the Musharraf government had made “amazing achievements” during the last seven years. “Even the worst enemies of President Musharraf admit that he brought about economic and political stability in Pakistan, empowered people and gave the best foreign policy that made Pakistan stand proudly in the comity of nations.”

Federal Minister for Ports and Shipping Babar Ghauri said that it was difficult for politicians to praise military rulers. He said the opposition had failed to mobilise people against the government, adding that the failure proved that Musharraf was the most popular leader of the country.

Pakistan Muslim League-Nawaz (PML-N) leader Khwaja Saad Rafiq refused to answer why his party could not gather 5,000 people to protest against Javed Hashmi’s arrest, contending that the channel had called him to comment on Gen Musharraf’s seven-year rule. Rafiq said that movements against military rulers always took time and hoped that the opposition would unite gradually. Ghauri and Azeem said that misunderstandings between their parties - the Muttahida Qaumi Movement and Pakistan Muslim League, respectively - had been cleared. They said that a good working coordination between the two coalition parties was in the offing. daily times monitor

http://www.dailytimes.com.pk/default.asp?page=2006\10\13\story_13-10-2006_pg7_27

 

[Skeptic786]

Friday, October 13, 2006

Musharraf ‘most popular leader’: Azeem

LAHORE: State Minister for Information Tariq Azeem on Thursday dubbed President Pervez Musharraf as the “most popular leader” of Pakistan, while Pakistan People’s Party (PPP) Senator Babar Awan said the president could not win a councillor’s seat without uniform.

Sycophancy at its worst

"Tariq Azeem on Thursday dubbed President Pervez Musharraf as the “most popular leader” of Pakistan"

 

[flameboard]

Musharraf only did what he did for money. He sold the Steel Mill for money. He gave away innocent people for money. He killed his own civilians for money. This guy doesn't care about Pakistan. He just going to sell the country make money buy some property in a foreign country and spend the rest of his life in luxury while back in Pakistan we are still paying for his luxuries. Imran Khan seems to be the only one talking sense these days.