Investigations on sugar companies have shaken up the business world and the political sphere, especially with the recent findings which will undoubtedly bear heavy political implications. The Federal Investigation Agency (FIA) has detected Rs110 billion earned by a majority of sugar groups during the last year through ‘speculative pricing’. Among those in trouble include PTI leader Jahangir Tareen’s JDW group, PML-N leader Shehbaz Sharif, his sons Hamza and Suleman, alongside major food companies.
The FIA has registered an FIR against Jahangir Tareen’s JDW group and Gourmet Bakers & Sweets Pvt Ltd, to arrest Jahangir Tareen and Ali Tareen under sections 406 (criminal breach of trust), 420 (cheating of public shareholders) and 109 of the Pakistan Penal Code (PPC), as well as for money laundering reasons. Shehbaz Sharif, Hamza and Suleman have also been booked for financial fraud, impersonation and forgery, as well as money laundering and other various crimes.
These revelations are both surprising, yet predictable. Firstly the PTI government has complained about a “sugar mafia” with Prime Minister Imran Khan in June approving massive investigations through various accountability organisations for taking action against the “sugar cartel”. The timing of the discoveries is surprising- the FBR and FIA teams were bound to submit their report by October 2020.
With so much time and effort invested, it is hoped that a clear and well-evidenced case against the sugar cartel is presented. The allegations are very serious—FIA has unearthed that through illegal coordination on Whatsapp groups and other covert communication channels, the price of sugar was deliberately being increased through artificial shortage and gambling (satta) on the price of sugar. However, this matter will not just end with the FIA—those who have been issued an FIR against are determined to settle the score. This issue will lead to an extensive case before the courts, making giant political splashes every step of the way.
