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  Home   » News   » Press Conferance to expose irregularities in SMEDA
 

Press Conferance to expose irregularities in SMEDA

 

LAHORE, June 26, 2006: First of all I welcomes all journalists and photographers to this press conference, who have always supported us in conveying our voice to the government. It may be General Sales Tax or law and order situation with the jewellers community. We now again expect that you will extend the similar support to us.

Dear brothers! As you all know that jewellery making is our national cultural inheritance, which is continuing for centuries. At present, over 0.6 million artisans are attached with this sector, which include from the jewellery box makers to the jewellery makers. Pakistan is at the ninth position of gold consumer and about 110 ton gold is consumed every year. Pakistan is preparing gold jewellery of international standard. Our jewellery exports revolve around a few million dollars, but on the other hand India is exporting gold jewellery worth 11 billion dollars despite our high jewellery standard.

Dear brothers! You are invited to this press conference today to convey our voice to the government on a very vital national issue and we expect that you will assist us on this sensitive issue. You are well aware of our struggle from Lahore Division Sarafa & Jewellers Association (LDS&JA) to Gold Art Promotion Council-Pakistan (GAPC-Pakistan). With your cooperation we are now in the position of taking this sector from cottage industry to a regular industry.

Our national press is aware of the fact that government is giving due consideration to our demands, including gems resources of the country. Therefore, on our demand the Ministry of Industries constituted a working group of gems & jewellery sector, Strategic Working Group (SWOG) in Small & Medium Enterprise Development Authority (Smeda) with the USAID investment. 

The group was formed in October 2004 and Gold Art Promotion Council-Pakistan was nominated its member on December 15, 2005. The Smeda were of the view that with the inclusion of Gold Art Promotion Council-Pakistan in this group, far reaching results will be achieved. 

Gold Art Promotion Council-Pakistan remained in touch with Smeda and asked it to inform about the development and working of SWOG so that the council could play an active role in it. But we were always told that a strategy is being prepared and the result will be made public soon.

Sir! Fraud and favouritism came to surface when Smeda convened a meeting to give briefing about Bangkok Jewellery Show on June 16, 2006. On this occasion an announcement was made that the strategy will be made public soon, without taking any member into confidence. SWOG is being given a shape of company with its directors already nominated. Mr Asad-ur-Rehman has been made director from Punjab with one or two directors from other provinces.

Dear journalist brothers! I want to draw your attention towards a tragedy that for the last 30 years a group, All Pakistan Gem Merchants & Jewellers Association, has a control over this domestic industry. These people are promoting their business with the concessions and favour of the government. They discouraged every new exporter of jewellery to fulfill their designs.

For increasing exports of gold jewellery, Lahore Division Sarafa & Jewellers Association and Gold Art Promotion Council-Pakistan succeeded in get eliminating the membership condition of All Pakistan Gem Merchants & Jewellers Association for jewellery export from Commerce Minister. More measures were taken to boost the confidence of the people in this regard. Therefore, with these positive signs, our jewellery exports is increasing and more and more exporters are joining this field.

Dear Sir, Our jewellery industry’s biggest bad luck has emerged in the shape of Smeda (SWOG). In this organization, the same group has misguided the Chief Executive Officer, Smeda, Shahab Khawaja. And they have kept away genuine and true representatives of the jewellers. These people have usurped millions of rupees in the form of TA, DA and consultancy and now after the constitution of Jewellery Company they have been planning to digest billions of rupees.

It will be a new disclosure that out of 80 members of SWOG most of them have nothing to do with the jewellery industry. For example, Dr Akbar Kasi has been included in SWOG fro Balochistan who is running the business in the name of Agropak Company. From Peshawar those people have been inducted in SWOG who are doing the carpet business. These examples are sufficient to prove that Chief Executive Officer, Smeda, Shahab Khawaja and a handful of these people are bent upon looting the national exchequer similarly with the 27 million rupees Jewellery Development Institute project.

Mr Asad-ur-Rehman is, at present, director of three companies—Pakistan School of Fashion, Lahore, Tuesday Company, Kit Lachlan, Lahore and Gem and Gemology Institute, Peshawar, and now he is trying to become director of the jewellers company, so that he could usurp the budget of Punjab. Chief Executive Officer, Smeda, Shahab Khawaja has been backing him in the achievement of his nefarious designs. Therefore, there is serious resentment among the jewellers community against this injustice.

Therefore, our demands are:

         Smeda has lost its worth and importance because it was constituted as a political bribe during the regime of former Prime Minister Nawaz Sharif. The department, which was created for the research work, but it has never prepared any research reports. Same is the case with the preparation of gems & jewellery strategy, which is still under process for the last two and a half years. It could have been completed within six months if genuine and true representatives have been included in it.

         We request and demand from President General Pervez Musharraf, Prime Minister Shaukat Aziz and Minister of Industries Jehangir Tareen to immediately merge Smeda into Export Promotion Bureau. While taking notice of embezzlement in Smeda, its Chief Executive Officer, Smeda, Shahab Khawaja should be immediately be dismissed. An advisory committee should be formed, having true and genuine representatives from the four provinces. 

         If these demands are not accepted within one week, then the jewellers community will be free to take any action, including coming on the roads. Then the government will be responsible for the situation.



            I once again offer my thanks to all of you who have come to this press conference by giving a practical proof of your assistance in the solution of our problems.

LAHORE, June 28,2006: Gold Art Promotion Council-Pakistan (GAPC-Pakistan) and Lahore Division Sarafa and Jewellers Association (LDS&JA) office-bearers have condemned the Small & Medium Enterprise Development Authority allegations leveled against GAPC-Pakistan President and Chairman LDS&JA, Muhammad Ahmad.
In an emergent meeting on Wednesday, the office-bearers of about 50 associations have reminded the Smeda spokesman that this department made its first public appearance at the First National Jewellers Seminar and Awards Distribution ceremony on December 19, 1998, organized by Lahore Division Sarafa and Jewellers Association. The office-bearers of these associations advised Smeda officials to see Gold Art Promotion Council-Pakistan and Lahore Division Sarafa and Jewellers Association working and put its record straight.

The jewellers’ representatives also reminded the Smeda spokesman that on March 2, 1999 Smeda invited Mr Muhammad Ahmad at the presentation on developing gold & jewellery sector. The occasion was the signing ceremony between Smeda and the World Gold Council. On this occasion, GAPC-Pakistan President and Chairman LDS&JA, Muhammad Ahmad was specially invited to attend the function. Till 2003, there was a continuous contact between the Smeda Chief Executive Officer, Mr Shahab Khawaja and GAPC-Pakistan President and Chairman LDS&JA, Muhammad Ahmad on the matters related to the jewellers community.

On December 15, 2005, Smeda offered membership of Strategic Working Group (SWOG) on gem & jewellery sector to GAPC-Pakistan President and Chairman LDS&JA, Muhammad Ahmad, keeping by acknowledging its working and status among the jewellers community.

On February 21, 2006, Smeda gave a positive and factual report to the World Gold Council about Gold Art Promotion Council-Pakistan and Lahore Division Sarafa and Jewellers Association.

At the end, the meeting urged Smeda Chief Executive Officer, Mr Shahab Khawaja to look into his department’s record for the confirmation of the above-mentioned record. If he has no record of these facts, then Gold Art Promotion Council-Pakistan and Lahore Division Sarafa and Jewellers Association are ready to provide him the record.



 

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