KARACHI, Nov 8: The Securities and Exchange Commission of Pakistan (SECP) and the federal industries and production ministry are investigating the credentials and corporate compliance status of 46 chambers of commerce and industry and more than 150 trade associations in the country. Representatives of these chambers and trade associations constitute the electoral college for the President and the seven vice presidents of the Federation of Pakistan Chambers of Commerce and Industry.

Khalid Amin, the secretary of the secretariat of the Federation of Pakistan Chambers of Commerce and Industry said on Saturday that the SECP wants to ascertain the corporate compliance of the chambers and trade associations. Riaz Tata, the President of the FPCCI, however, insists that it was on his initiative that the SECP is carrying out such an investigation. Tata's adversaries in the businessmen politics allege that he was doing so to suspend election process of the FPCCI so that he could continue to hold office even on expiry of his two-year term.

Tata concedes that he issued no objection certificates for the setting up of chambers and trade offices during his last two-year term. But he does not give the number or the names of such chambers and trade associations. Khalid Amin too confirms that the FPCCI did issue NOCs in last two years for chambers and trade association but he too is reluctant to give any specific number or names.

Ilyas Bilour, a former President of the FPCCI is more than blunt in pointing out that Tata gave NOC for the setting up of Tribal Areas Chamber of Commerce and Industry. Bilour talking to this correspondent in a hotel room on Saturday disclosed that DTO has refused to correspond with the Tribal Areas Chamber on Peshawar address. He concedes that NOCs for chamnbers and trade associations were issued when he was President. "But I did it in consultation with managing committee members.

Tribal areas NWFP is in convulsion these days. There are reports of population dislocation, mine blasts every other day and closure of markets. But there is an active Tribal Area Chamber of Commerce and Industry with a postal address from Peshawar. A preliminary list of nominations on the Managing Committee of the apex trade body, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) of this Chamber shows four names of the businessmen. Out of these one will become member of the Managing Committee of the FPCCI and cast his vote in the election of the President and seven vice presidents of the FPCCI on December 14.

In fact, there are 46 chambers, 78 A category trade associations and 70 B category associations.

According to details there are 17 chambers in Punjab, 12 in Sindh, 5 in Balochistan, 6 in NWFP and 5 in Azad Kashmir. Chambers represent the business interest of a specific area while trade associations represent a specific trade be it industry or commerce.

The irony is that FPCCI is involved in setting up of these chambers and trade associations. The FPCCI issues a no objection certificate after ensuring the credentials of the businessmen members. A joint secretary of the Commerce Ministry is assigned the job of Director of Trade Associations (DTO) who issues licence to the trade body. The SECP oversees corporate compliance.

Tariq Sayeed, an activist of business politics for last more than 25 years and who held top offices in Karachi Chamber and the FPCCI, refuses to accept that there were bogus chambers and paper trade associations. As for the 46 chambers he predicts it is bound to increase further and "you may see as many as 18 chambers in Karachi alone because there are 18 town committees in the city after devolution. There are more than 500 chambers in Japan," he argues.

As economy grows and new technologies come new business interests are bound to be created and hence the businessmen of an interest get together to seek solutions of their specific problems with the government.