Trading Corporation of Pakistan (TCP) has confirmed the acceptance of the nominated vessel MV "Polar Star" for loading of about 24,000 MT (+/-5) of sugar from Thailand (laycan 15-30 May, 2010) for onward discharge at Karachi Port/Port Bin Qasim, well-informed sources in the Commerce Ministry told Business Recorder.
In a letter POD/sugar/10-3/2010 to M/s Alam & Alam, the local agent of M/s Cargill Inc Switzerland, TCP's Manager, POD, Sahto Anwar Ahmad Jaan has also set the following conditions for the consignment: (a) the vessel should meet all discharge port parameters and in accordance with the terms and conditions of the relevant import tender; (ii) since the age of the vessel is exceeding 15 years of age, therefore, vessels' overage insurance premium as per Lloyds of London scale shall be on seller's account; (iii) the vessels should pass all tests to be carried out by TCP's pre-shipment inspection agent at load port in order to ascertain and certify that the vessel is fully fit and suitable to load the intended cargo of sugar. The survey should cover the points mentioned in the relevant tender terms and conditions; (iv) in case of any delay in discharging due to running, faulty or less capacity cranes, the said delay will also be on the sellers account; and (v) all other terms as per relevant tenders' terms and conditions.
In another letter, LD/(L) 1-393/2010, TCP's Deputy Manager Legal Division, Muhammad Fareed has confirmed that M/s Cargill Inc, Switzerland and its local agent are pre-qualified in TCP while M/s Cargill Inc, USA and its local agent has been in litigation with TCP for long. It is clearly mentioned in pre-qualification process that only those parties will be pre-qualified with TCP, which have no ongoing litigation with TCP.
"We requested our concerned division about the above position. They enquired the position from M/s Cargill Inc, Switzerland. The party informed that M/s Cargill International SA and M/s Cargill Inc USA are two different entities, each incorporated in a different country under different jurisdiction," Fareed said in the letter written to Samiuddin Sami, Legal Advisor.
According to the letter, the local agent of the above parties are same and also in litigation with TCP. Legal Adviser, however was of the view that it is a common practice to get the company incorporated in different countries and in law they are two separate entities, but in fact they are called sister companies or companies in the same group. "Ask them to give names of directors of the two companies. If there are common directors, blacklist them," the letter quoted the Legal Advisor as suggesting to TCP.
It is unclear, whether TCP has asked the local agent of Cargill of the names of the directors. The TCP has already written a letter to the Finance Ministry requesting for release of foreign exchange of $46,541,250,00 to enable it to establish LC of the successful bidder M/s Cargill International SA Switzerland to avoid further delay in establishment of LC for import 75,000 MT (+/-5 per cent) sugar.
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