Major sugar mills underreported sales, committed fraud: forensic report.

Information Minister Shibli Faraz and Special Assistant to the Prime Minister (SAPM) on Accountability Shehzad Akbar on Thursday revealed details from a report issued by the Sugar Forensic Commission (SFC) constituted to investigate and assign responsibility for the shortage and price hike of the commodity in the country in recent times.

Addressing a press conference in Islamabad alongside the information minister, Akbar said the commission's report, which had already been discussed by the federal cabinet earlier today, revealed that six major sugar mill groups were acting as "cartels".

"They hold 51 per cent of the total supply," he added.

"A mill called Alliance from Rahim Yar Khan - partially owned by Pakistan Muslim League Quaid (PML-Q) senior leader Moonis Elahi - was audited. It showed that between 2014 to 2018, farmers faced an 11-14pc systematic cut, which translated into Rs970 million and was a huge blow to them," Akbar said.

He added that the mill under-reported sugar sales "for years" and sold the commodity to unnamed buyers and had committed violations under the Pakistan Penal Code.

Akbar also mentioned the JDW sugar mill in which PTI stalwart Jahangir Tareen has a 21pc stake. He said according to the report, the mill committed "double booking, under-reporting and over-invoicing".

"The report noted that the mill [JDW] under-invoiced sales from bagasse and molasses which resulted in 25pc cost inflation. They also committed corporate fraud whereby money was transferred from their PLC to their private company.

Forward sales, satta, unnamed sales have all been associated with JDW too.

The Al Arabiya mill owned by Salman Shahbaz Sharif was also audited, the SAPM said, adding that it was found to have committed fraud worth Rs400m through informal receipts and market manipulation.

Akbar said the report had proven what PM Imran Khan had always maintained.

"Whenever a businessman comes into politics, he will always do business even at the expense of the poor. So his [PM's] thinking has been validated. A certain business community has captured the market and as a result, people are suffering," he said.

He added that the report will be available online shortly for anyone to read following the prime minister's orders.

Akbar said that the report revealed that certain sugar mills also used informal receipts. "It was ultimately the farmer who was crushed because there was no official record. The mill owners showed the price of production as...