The Ministry of Industries and Production (MoI&P) has imposed a ban on procurement in Utility Stores Corporation (USC) at all levels with immediate effect, paving the way for privatization of the public sector national chain.
An office order issued by USC headquarters said: "As directed by the joint secretary of Ministry of Industries and Production that during the presentation to the Prime Minister's Advisor and Secretary Industries, they have directed to stop all kinds of procurements at head office, zonal office and regional office level immediately till further orders." Informed sources told Business Recorder that this decision was taken at a high-level meeting in the Ministry where a briefing was given to the newly-appointed Advisor to the Prime Minister.
During his previous term as Federal Minister, Dawood had proposed privatization of one of the corrupt organizations i.e. USC on the plea that business is not the area of government. Since then, the USC's financial position has declined due to unchecked corruption and the presence of a mafia style management.
According to the information, some certified corrupt elements are sitting in the USC and all previous efforts made by the Ministry of Industries and Production or former managing directors of USC remained fruitless.
It is also revealed that 125 corruption cases involving Rs 750 million relating to different USC stores are under investigation in NAB and FIA. The USC has recovered only Rs 16 million so far.
One case is pending in NAB involving an amount of Rs 33.62 million, three cases are with Special Judge Central involving an amount of Rs 4.1 million of which Rs 0.41 million have been recovered. In Punjab, 40 cases are registered involving an embezzled amount of Rs 251 million, of which Rs 2.3 million have been recovered whereas Rs 249 million are yet to be recovered. In Sindh, the total number of cases is 59, involving Rs 42 million, of which Rs 5.1 million have been recovered and Rs 36.96 million are pending. In KPK, 19 corruption and embezzlement cases are registered involving an amount of Rs 25.94 million, of which Rs 8.4 million have been recovered whereas Rs 17.44 million are pending. In Balochistan, two cases of corruption are registered involving Rs 368 million, of which Rs 20 million have been recovered.
The USC official said that Rs 350 million pertains to only one case whereas the remaining amount belongs to the USC's annual sale, which was Rs 59.392 billion in 2016-17 against Rs 52.617 billion in 2015-16.
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