ISLAMABAD, Dec 7: The conversion of Monopoly Control Authority (MCA) into a proposed competition commission has been delayed due to the law ministry's doubts over the draft law, although it was duly approved by Prime Minister Shaukat Aziz.

Sources in the ministry of finance told Dawn on Thursday that the much- sought-after conversion of the MCA into commission was in jeopardy as the draft law has not been cleared by Law Minister Wasi Zafar for the last two months and it was still lying on his table.

"We really do not know whether the minister is so busy and unable to sign the draft law or the vested interests have succeeded in thwarting the proposal of having this commission," a source said.

Interestingly, the draft law, he said, had been appropriately approved by the secretary ministry of law and should not have been delayed for so long.

He said the conversion of MCA into a competition commission was the part of the second generation economic reforms, which, too, had not been undertaken by the government. "Perhaps people at the top are busy in other pressing political issues and have no time to initiate the second generation reforms," the source said.

He also said that like many people in the government, international donor agencies, especially the World Bank and the Asian Development Bank (ADB) were also surprised over the delay of having a competition commission, which was to be formally functional from October this year.

Senior Joint Secretary (Investment) at the ministry of finance Iqbal Hussain, when contacted, said that the draft law was yet to be approved by the cabinet and the parliament.

---However, when reminded that draft law was lying on the table of the law minister, he said, "then why are you asking me and are not asking the ministry or the minister." He said he was in Karachi for the last three days and did not know what was happening in Islamabad.

Earlier, sources said President Gen Pervez Musharraf was expected to promulgate an ordinance to convert the MCA into a competition commission with "increased powers" for which Rs400 million had also been earmarked by the government.

However, the officials of the President House believed that let the draft be passed by the cabinet and the parliament and that the issue should be first resolved by the law ministry and the finance ministry.

They confirmed that the draft law of the commission has been approved by the prime minister.

The draft law has been termed as "modern law" which would discourage bad business conducts by proposing prosecution through courts and heavy penalties against the violators.

When contacted Chairman of the MCA and the proposed competition commission Khalid Mirza said that the draft law was currently going through various processes before it is sent to the parliament for approval.

However, he said in the absence of the commission, he was trying to improve things in the MCA and make it an effective organisation. He was taking steps against variety of cases involving unreasonably restricted trade practices and unfair manipulation of powers.

MCA has been termed as a 'dead horse' which has to be made alive by taking urgent and necessary steps favouring businesses as well as protecting the rights of the consumers, he said.

One of the very important features of the proposed competition commission is the introduction of public hearing system to develop and promote good competition and competitive behaviour among the business organisations.

It was also said that there will be a complete shift from previous practices of MCA to intrinsically discourage bad trade practices for ensuring responsibility by the businesses.

While there will be a level-playing-field for the business organisations, the commission will ensure at the same time that there is no manipulation by the industrial houses and companies. The job of the proposed commission will be to ensure rational commercial conduct and action against the manipulators.

After having received a complaint against any company, the commission will first make sure that this complaint was genuine. Then it will investigate the issue and if any wrongdoing was found, it will issue a show cause notice to the defendant.

According to the concerned officials, the whole hearing will be conducted by a commissioner of the commission and after his decision, there will be a right of appeal before a bench comprising two commissioners.

And if a decision still goes against a business organisation for having been involved in any wrongdoing or manipulation, it would be given the last right of appear in the High Court.

The job of the commission will be to discourage cartelisation and monopolisation by business organisations and companies. However, the commission would not be ignoring global business practices, which allow profit making.

The commission will certainly take steps to discourage cartels rather than taking a punitive action. It will be taking a liberal and progressive approach not to penalise people without substantial evidence.

In the new law a very important function, which has been enshrined was that of effective advocacy by holding public hearing against any complaint.

Although the role of the commission was that of an advisory nature, its decisions were expected to be accepted by the government.

The World Bank has agreed to develop the capacity of the commission, which is not there in the MCA. An official said that technical skills of the commission were needed to be largely developed to ensure its improved functioning aimed at encouraging businesses and at the same time looking after the interest of the consumers.

He said a bigger research capacity will be developed through out-sourcing in the commission for which, "we would appoint good forensic accountants, micro economists and prominent lawyers, who would form a team."