ISLAMABAD: The Competition Commission of Pakistan (CCP) has failed to submit the annual reports for last two years to the Finance Ministry.
As per mission statement, CCCP strives to foster a robust economy and to help promote economic growth by encouraging and enforcing free competition in all spheres of commercial and economic activity. The Commission wishes to enhance economic efficiency and protect consumers from anticompetitive behavior.
“However, in contrary to mission statement, state of affairs present negative picture, because CCP has not published the said reports in last two years on account of confusion regarding auditing authority” a well placed source at Finance Ministry told this scribe here on Tuesday.
“The reason for not publishing annual reports and submitting the Finance Ministry is a confusion as to which institution would conduct the audit of the Commission; the Chartered Accountant Firm as was previously done or the office of the Auditor General of Pakistan” the source said adding that provisions of Article 170 (2) and Section 21 (2) of the Competition Act, 2010 did not synchronized with each other, therefore, interpretation of said articles took time which resulted in delay of finalization of the annual reports.
To a question regarding mechanism for checking CCP’s performance, the source said that under Section 12 (3) of the Competition Act 2010, CCP was an independent entity both administratively and functionally, therefore no specific criteria had been laid down to check the performance.
The source said that Competition Act, 2010 was part of the broader competition policy framework of the Government of Pakistan through which it endeavoured to engender free competition in all spheres of commercial and economic activity. The source said that the crucial objective of CA ’10 was to enhance economic efficiency and to protect consumers from anti competitive behavior.
“However, the performance of the Commission was checked on the basis of annual activities report under Section 21 and 22 of the Competition Act, 2010 and year book in term of Rule 25(2) of the Rules of Business, 1973”the source added.
The source confusion regarding the auditing authority had been clarified in the 18th amendment in the constitution, therefore the Directorate General Audit (Federal Government) had asked for submission of financial statements for the year 2011-12 to 2013-14 for certification as per requirement of section 21 of Competition Act, 2010.
The source said that Finance Ministry expected receipt of the certified accounts in near future from the Directorate General (Govt. Audit) and CCP. “Thereafter, the annual reports along with certified accounts will be published in the Gazette of Pakistan” the source added.
The source said that CA 10, the law prohibited situations which tended to lessen, distort or eliminate competition such as actions constituting an abuse of market dominance, competition restricting agreements and deceptive market practices.
“Although essentially an enabling law, it briefly sets out procedures relating to review of mergers and acquisitions, enquiries, imposition of penalties, grant of leniency and other essential aspects of law enforcement” the source observed.
