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Misappropriation of sugarcane cess widespread

* Suggestion to use cess for earthquake rehabilitation welcomed

By Hamid Waleed

LAHORE: The sugarcane cess contributors have welcomed the suggestion put forwarded by certain circles that the money collected under the head of sugarcane cess be utilized for the welfare and rehabilitation of the earthquake affectees.

It has been learnt on good authority that the Punjab government had collected about Rs 240 million by the end of 2004-05, most of which is still unutilized. Investigations revealed that misappropriation of the cess money is widespread, as fake deposit account of the cess has been ascertained in haphazard manner. The cess money is being misappropriated at every level of authority and audit has not been conducted since long.

Sources claimed the cess money for the most part was being used for political purposes, including political bribery. The sources mainly blamed managers for the misappropriation.

Moreover, district-wise inquiries would expose more financial irregularities and violation of the rules, the sources claimed. They claimed that the district administration in Faisalabad utilized the sugarcane cess for construction and repairs of the by-pass road. Investigations revealed that the cess has never been given to most districts in Punjab despite persistent demand by the sugarcane growers and the sugar millers.

Some sugar millers claimed that MNAs, MPAs and district council members looked at these funds with greedy eyes and wanted to become member of the committee at the district level by all means.

The Sugarcane Development Cess Rules 1964 have since been invoked under SOF (sugar) 13 (35)/64 (Part II wef 18-06-1965) duly tamed and accordingly modified by the lawful authority. The Sugar Factories Control Act of 1950 may also be referred to in this respect. Under the Act, occupier of a factory means the person who has ultimate control over the affairs of a sugar mill and seller means a person selling sugarcane to a sugar mill and includes the authorized agent of such a person. The portion of the cess payable by the seller at the rate of 25 paisas a maund of sugarcane under the Act shall be recovered from the seller by the mill management while making the payment for sugarcane to him. The mill management shall contribute to the portion of the cess recovered from the seller under sub rule (1) however, an equal amount and deposit the total amount of the cess together with the whole of the cess due in respect of any quantity of sugarcane obtained from the mills over sugar farms or from the farms of the occupier of the factory in the nearest government treasury in the manner prescribed under rules (3) and (4).

The Act prescribes that the cess shall be deposited in the government treasury within five days of the close of each fortnight, ie, by the fifth and twentieth of each month.

The Sugarcane Development fund has been established under the Act.

The sugarcane growers urged the National Bureau of Accountability to take notice of the misappropriation at the earliest, especially when the crushing season was to start.

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