FBR, ECP at war over �real� assets of parliamentarians

ISLAMABAD: A tug of war has started between FBR and the Election Commission with the taxmen wanting to investigate parliamentarian’s assets while the ECP does not want to share the declared assets data.

In a bid to net the powerful and wealthy politicians, the Federal Board of Revenue (FBR) has sought data pertaining to the declared assets of elected parliamentarians from the Election Commission of Pakistan (ECP). FBR sleuths will be tasked to scrutinize whether the ‘real’ assets are in consonance with their officially declared assets, it is learnt.

The ECP however is unwilling to share this data on the plea that the law does not authorize it to share the relevant data. Despite repeated formal requests made by the FBR, the ECP is not ready to share assets declarations in official capacity and giving mandate any other entity to scrutinize this data.

“No such law exists in the country that binds the ECP to give mandate to any other institution including the FBR to scrutinize the assets declarations of Parliamentarians,” Secretary ECP, Ishtiaq Khan told The News on Saturday.

He said that the ECP was working on different reforms to bring more transparency. A sub committee, he said, has been formed that was assigned to come up with its recommendations to the ECP for introducing more reforms. “If the need arises, the ECP can refer to the Parliament for considering approving of legislation where the law of land is silent as of now, “ he added.

The FBR is working to broaden its narrowed tax base by identifying non- filers as well as under-filers (those undervaluing and partially hiding assets) to ensure true materialization of the tax potential. In this regard, the FBR has officially requested the ECP to share the data of asset declarations of parliamentarians so that FBR would be able to carry out a serious audit.

Top functionaries of the FBR confided to The News that they had been trying for months now to get this data from ECP, which had stonewalled all efforts and requests. “We have been seeking data of asset declarations of parliamentarians from the ECP from last several months but in vain. We know that the data of asset declarations of parliamentarians is available with different stakeholders but we want it in official capacity that will enable us probing them by putting mismatch in their filed returns and asset declarations,” a top official of FBR said. The FBR, the sources said, has given its legal viewpoint and expert opinion on key issues relating to sharing of assets and liabilities related information of the Members of the National Assembly and Senate to the ECP.

The FBR has proposed that all parliamentarians should be bound to declare that no asset has been kept as ‘Benami’.

The ECP and the FBR are considering comparing the income tax laws with the Section 42A of the Representation of People Act, 1976 and Section 25A of the Senate (Election) Act, 1975 under which it will become mandatory for the Members of the Parliament and provincial Assemblies to submit to the Election Commission the yearly statements of assets and liabilities of their own, their spouse and dependents.

The FBR and ECP are contemplating eight points including whether the ECP should place on the website the notifications containing details of political parties accounts as well as statements of assets and liabilities of Members of the Parliament and Provincial Assemblies. The eight points include: Whether information about assets of close relatives and dependents is equally important in our context as most of the assets are kept in their names and whether an affidavit should also be made mandatory to the effect that no asset has been kept as ‘Benami’.

Whether ECP is duplicating activity by seeking assets declaration Form and whether it should coordinate with Federal Board of Revenue and seek a certificate from FBR regarding assets declaration and tax payment certificate on behalf of the individual and political party and what is the effect of the existing provisions of law contained in Section 42A of the Representation of the People Act, 1976 and 25A of the Senate (Election) Act, 1975? Whether the enforcement of law (Sections 49-50 of the Representation of the People Act, 1976) relating to election expenditure is necessary?

Whether there should be an undertaking from the political parties and not necessarily the individual candidate?

Whether there should be Coordination Committee involving the Auditor General of Pakistan, FBR, ECP to prepare a mechanism for declared campaign expenses and their further assessment.

Zep Inc. Completes Purchase of Washtronics of America Inc. Assets

ATLANTA--(BUSINESS WIRE)-- Zep Inc. (NYSE:ZEP - News), a leading producer and marketer of a wide range of cleaning and maintenance solutions, today announced it has completed the purchase of certain assets of Nevada based Washtronics of America Inc. (“Washtronics”) a pioneer of automatic truck and fleet wash systems and products, for an undisclosed amount of cash. Washtronics, which posted 2010 sales of over $1 million, had been in bankruptcy proceedings since September 21, 2011. The acquisition was effective December 7, 2011, and is expected to be accretive to Zep, Inc. earnings during Fiscal 2012.

Washtronics will become a part of Zep Inc.’s Niagara National division. Niagara National is currently a leader in automatic truck wash systems and products, and with this transaction, extends its geographic customer access to the west coast. The addition of Washtronics brand of custom truck wash, pressure washers and maintenance chemicals also expands Zep Inc.’s overall transportation product portfolio that today consists of the Zep, EnviroEdge, Niagara, and Armor All Professional brands.

“This acquisition is another example of our strategy to expand our product portfolio and access to market by further strengthening our position in truck and fleet wash,” said John K. Morgan, Chairman, President and Chief Executive Officer of Zep Inc.

“This addition emphasizes our commitment to the truck and fleet wash segment and our desire to provide our customers with expanded, innovative product offerings,” said Ron Kirschner, Vice President and General Manager of Niagara National. “The combination of Washtronics and the Niagara National product line will further enhance Zep’s leadership position in the truck and fleet wash marketplace.”

About Zep Inc.

Zep Inc., with fiscal 2011 net sales of over $646 million, is a leading producer and marketer of a wide range of cleaning and maintenance solutions for commercial, industrial, institutional, and consumer end-markets. Zep Inc.'s product portfolio includes anti-bacterial and industrial hand care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, and pest and weed control products, as well as high performance products and professional grade chemical products for the automotive, fleet maintenance, industrial/MRO supply, institutional supply and motorcycle markets. We market these products and services under well recognized and established brand names, such as Zep(R), Zep Commercial(R), Zep Professional(TM), Enforcer(R), National Chemical(R), Selig(TM), Misty(R), Next Dimension(TM), Petro(R), i-Chem(R), TimeMist(R), TimeWick, MicrobeMax(TM), Country Vet(R), Konk(TM), Niagara National(TM) and a number of private labeled brands. Some of Zep's brands have been in existence since the Company's 1937 founding. Zep Inc.'s headquarters are in Atlanta, Georgia. Visit our website at www.zepinc.com.

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Chevron Fails in U.S. Court Bid to Restrain Ecuadorean Assets

Chevron Corp. (CVX)’s bid to protect its assets that could be seized as part of an $18 billion environmental damages verdict against the company in Ecuador was denied by a U.S. judge, who said the request could be renewed at a later date.

Chevron, the second-largest U.S. oil company, had asked U.S. District Judge Lewis Kaplan in New York to block the collection of the judgment and the “dissipating” of any proceeds pending resolution of the company’s racketeering lawsuit alleging that the plaintiffs engaged in fraud to win the Ecuadorean judgment. The company sought to “temporarily ensure the availability” of all assets while the U.S. case proceeds.

“Chevron has made no effort to quantify the damages it alleged has been sustained to date, let alone to support any damage claim with evidence,” Kaplan said in his ruling today.

Chevron was ordered on Feb. 14 to pay as much as $18 billion in compensatory and punitive damages for Texaco Inc.’s alleged dumping of toxic drilling wastes in the Ecuadorean jungle from 1964 to about 1992. The ruling came in an 18-year-old lawsuit decided by a judge in Lago Agrio, a provincial capital near the Colombian border.

While Kaplan blocked the collection of the Ecuadorean judgment in March, a federal appeals panel in September tossed that ruling. The appeals court hasn’t issued a full opinion in the matter.

Chevron denies wrongdoing in the Lago Agrio lawsuit. The company says Texaco cleaned up its share of the pollution at its former oil fields, which were taken over by PetroEcuador, Ecuador’s state-owned oil company. Chevron says it was released from any future liability by an agreement between Texaco and Ecuador.

The company alleged in a U.S. racketeering lawsuit before Kaplan that lawyers for the Ecuadoreans conspired to fabricate evidence. Attorneys for the Latin American plaintiffs said the lawsuit is an unjustified attempt to derail the pollution lawsuit damages.

Kent Robertson, a spokesman for Chevron, said in an e-mail that “we appreciate the court’s prompt response to our motion. The court decided the motion on very narrow grounds and did not question the strength of Chevron’s fraud evidence. Clearly the court has left the door open to a future attachment filing. We look forward to the balance of our racketeering case proceeding and remain committed to holding the plaintiffs’ lawyers accountable for their misconduct.”

Karen Hinton, a U.S. spokeswoman for the Ecuadorean plaintiffs, said in an e-mail that “it is clear that Chevron’s motion had no legal basis and was designed yet again to distract attention from the company’s fraudulent misconduct in Ecuador as well as its obligation to clean up its toxic waste in Ecuador’s Amazon that threatens the lives of thousands of people.”

The racketeering case is Chevron v. Donziger, 11-00691, U.S. District Court, District of New York (Manhattan). The case in Ecuador is Maria Aquinda v. Chevron, 002-2003, Superior Court of Nueva Loja, Lago Agrio, Ecuador.

To contact the reporter on this story: Patricia Hurtado in New York at pathurtado@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

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