Mike Surridge, head of the Financial Investigation Division. - Damion Mitchell photo
THE MIKE Surridge-led Financial Investigation Division (FID) is set to investigate irregularities involving vegetables brought into the country by importers and which may have indirectly led to last month's 'price gouging' showdown between the Consumer Affairs Commission (CAC) and local retailers.
According to Phillip Paulwell, minister of commerce, science and technology, the findings of an investigation into the events surrounding price gouging accusations by the CAC have been forwarded to the FID as a result of indications of under-invoicing at Customs by importers.
"An investigation will have to determine the truth," Mr. Paulwell said yesterday, while noting that suggestions of under-invoicing were not yet definitive. He was speaking at the weekly post-Cabinet press briefing at Jamaica House yesterday.
CUTS IN IMPORT DUTIES
Consumers were expected to benefit from drastic cuts in import duties after Hurricane Ivan, had brought the local vegetable industry to a crawl. However, vegetable prices remained high and the CAC, after field investigations, was compelled to present a list of retailers it suspected of price gouging.
But yesterday Mr. Paulwell indicated that the field surveys were primarily corrupted when CAC officers inadvertently mixed up the prices of local vegetables and imported vegetables.
During yesterday's briefing Information Minister Burchell Whiteman outlined the issue of under-invoicing and other elements of a report to Cabinet by a four-member committee which was set up to examine the events which led to the CAC's claims. "It was found that there were discrepancies at the point of Customs ... there was a view that all was not on the level," Mr. Whiteman said.
Last month, the CAC's claims led to a furore when retailers denied any wrongdoing and demanded a retraction. After initially holding firm to its findings, the CAC recanted and announced the resignation of Raymond Pryce, the commission's director of research, information and communication.
SERIOUS ERRORS
Yesterday Mr. Whiteman, a member of the four-member committee set up by Prime Minister P.J. Patterson, told journalists it was clear the CAC had made serious errors, but noted that the commission is "well respected by the public" and could regain any lost respect.
He noted that in its report to Cabinet, the committee had recommended that steps be taken to increase staffing and training at the CAC, so that it can better fulfil its mandate. Also, it has asked that the reduced duty rate on imported items (except for carrots which need more time to mature) announced immediately after the hurricane, should cease at the end of this month.
The committee also recommended that future imports, during similar emergencies, should be done through "an unbreakable chain" between importers, the government, and consumers.
