LAHORE: The Pakistan Poultry Association (PPA) has disassociated itself from members accused of cartelisation.
Commenting on the ongoing Rs155 million cartelisation case against eight poultry companies and the poultry association for price-fixing of day-old broiler chicks, a spokesperson of the PPA told The News that the association has nothing to do with the alleged wrongdoings of member companies.
He argued that the case against the PPA is unfair, as the association is not involved in the alleged wrongdoing and does not benefit from it.The association’s comments came as the Lahore High Court (LHC) on Thursday refused to stay proceedings of the Competition Appellate Tribunal (CAT) in the Rs155 million cartelisation case against eight poultry companies and the poultry association for price-fixing of day-old broiler chicks (DOCs).
The petitioners had requested the court to restrain CAT from deciding the appeals during the pendency of their constitutional challenges.One petitioner challenged the constitutionality of Section 34 of the Competition Act, 2010, which empowers the CCP to enter and search premises, and Section 53, which allows the CCP to seek assistance from other authorities and agencies for the collection of evidence. The petitioner also sought a stay on CAT proceedings and requested that the Tribunal be barred from relying on forensic reports prepared by the Federal Investigation Agency (FIA) and data obtained from the Pakistan Telecommunication Authority (PTA), which were relied upon in its order.
The PPA spokesperson termed functions of the member companies a standalone affair saying the PPA could not be held responsible for individual members’ actions. He added that members pay a membership fee, and the association uses this fee for its operations.
The association used revenue for industry-related purposes including outreach, research, and other initiatives. The spokesperson questions why the association should be held responsible for individual members’ profits, when the association itself does not share in those profits.
The poultry association’s representative emphasizes that the association is not a profit-making entity and relies on member donations to operate. If there is any illegal step taken by the member, it is not the association’s decision, he stressed.
It is pertinent to note that during search and inspection operations, the CCP teams recovered electronic material evidence from the offices of the poultry association and several hatcheries. The materials were later forensically analysed and used by the CCP to pass its order.
Another petitioner filed a separate petition before the LHC on similar grounds, requesting the court to restrain CAT from issuing a decision based on evidence obtained from cellular phones and PTA data. The LHC did not accept the pleas seeking a stay or suspension of CAT proceedings. However, the court will continue to hear the petitions on merit.
In April this year, the CCP imposed a cumulative penalty of Rs155 million on eight major poultry hatcheries and the poultry association for cartelization and price-fixing of day-old broiler chicks. The action followed a suo motu inquiry initiated by the CCP into the DOC market.The inquiry concluded that major hatcheries were engaged in coordinated price-fixing, in violation of Section 4 of the Competition Act, 2010.
