Six sugar mills owe Rs 2.65 billion to TCP: official

The country's six leading sugar mills owe Rs 2.65 billion to Trading Corporation of Pakistan (TCP), an audit report revealed here on Wednesday. Secretary Ministry of Commerce Younas Dhaga while briefing the Public Accounts Committee (PAC) meeting, which was held under the chairmanship of Syed Khursheed Ahmed Shah here on Wednesday, said that the TCP has moved the court against the defaulters.
It was claimed that Tandlianwala Sugar Mills Limited (TSML), which is owned by Humayun Akhtar Khan, is the biggest defaulter with a Rs 1.15 billion outstanding amount to the government. According to the audit report, TMK Sugar Mills, owned by Mohsin Tabani, is at second place and has committed a default of Rs 640.74 million, followed by Abdullah Sugar Mills Limited (Rs 510.64 million) and Sehri Sugar Mills (Rs 150 million).
The officials of the Auditor General of Pakistan (AGP) while briefing the committee on the audit paras of the Ministry of Commerce for 2012-13, said that Rs 540 million allocated to the ministry in 2012-13 lapsed due to financial mismanagement. Moreover, the ministry failed to utilise Rs 168 million earmarked for developmental budget. Taking notice of the serious financial mismanagement in ministries and divisions, the PAC observed that it was a matter of serious concern and decided to write a letter to all the federal secretaries to ensure financial management or stop taking supplementary budget at the end of financial year.
The PAC decided to write to the Economic Coordination Committee with the request to halt all advance payments to sugar mills after the secretary informed the body that the funds were transferred to the mills under the head of advance payments. The secretary commerce said the matter related to advance payments against six sugar mills had been sent to the National Accountability Bureau (NAB) for an inquiry.
The ministry revealed in the meeting that bank guaranteed for the only 10 percent of the total amount taken from these sugar mills. The ministry said the advance payments were made to six sugar mills - Abdullah Sugar Mills (Depalpur), Abdullah Sugar Mill, Haseeb Waqas Sugar Mills, TMK Sugar Mills, Seri Sugar Mills and Tandlianwala Sugar Mills - for purchase of sugar in 2008 and 2009.
However, the sugar mills defaulted in delivery of the contracted quantity of sugar, on that TCP filed a case in the Sindh High Court for recovery of the amount. He said that contracts were granted to the sugar mills under terms of reference given by the then ECC. On which, the PAC sought the details from the NAB regarding the inquiry of above scam.
Chairman Trade Corporation Pakistan (TCP) Sheikh Mushtaq told the committee that Rs 21.7 billon and Rs 23.8 billion have been remitted to TCP from Utility Stores Corporation and National Fertilizer Marketing Limited respectively in line of supply of sugar, wheat and urea. The management explained that since 2013, out of Rs 50.669 billion Rs 45.518 billion have been recovered from various organisations. Discussing the sugar export, the PAC directed the ministry to submit export policy and last three-year details of sugar export with the committee in the next meeting.
The secretary commerce further told the committee that the export quota to the sugar mills was used to grant under 'first come first pick' policy. The PAC expressed concerns over the absence of secretary Cabinet Division in discussion of relevant paras. Additional Secretary of the Division, Syed Sohail Altaf wanted to brief the body but Khursheed Shah stopped him and directed for pending the agenda until the next meeting.
The PAC meeting was attended by Syed Naveed Qamar, Raja Javed Ikhlas, Shafqat Mehmood, Mahmood Khan Achakzai, Sardar Ashiq Hussain Gopang, Maulana Abdul Ghafoor Haideri, Mushahid Hussain Sayed, Jafar Leghari and Mian Abdul Mannan.