Trading Corporation of Pakistan has blacklisted a pre-qualified international supplier and its local agent after they failed to supply sugar as per the contract. Sources told Business Recorder on Tuesday that TCP has also forfeited the company''s performance guarantee and now the company and its agent have been blacklisted for any kind of business with the Corporation.
Following the directives of the Economic Co-ordination Committee (ECC) of the Cabinet, TCP started sugar import operation in last week of December 2009 to meet local demand. The 10th sugar import tender was opened on May 22, 2010 and "Sadaat Business Group Dubai" through its local agent M.M Elahi Traders Peshawar participated in the tender. Dubai-based company offered to supply 50,000 tons sugar at $598 per ton (cost and freight), which was lowest bid in the tender and being a lowest bidder, TCP awarded 50,000 tons sugar import tender to Sadaat.
After submission of performance guarantee by the lowest bidder, Letter of Credit (LC) for the import of awarded quantity was opened on June 22, 2010 by TCP in favour of Sadaat and as per LC the wining bidder was bound to ensure first shipment at Karachi port till July 8, 2010.
However, the supplier delayed shipment of sugar and despite a grace period of 10 days, it failed to supply the commodity as per the agreement with TCP. Despite opening of LC and several advises by TCP, M/s Sadaat never dispatched a single ton of sugar, although it was given two weeks with plenty of 0.10 dollar per ton per day to 0.20 dollar per ton per day for supply of the commodity. Finally, on non-shipment of sugar as per contract, the corporation forfeited performance guarantee worth $0.598 million dollar.
"M/s Sadaat and its local agent M M Elahi Peshawar''s non-professional attitude directly impacted the sugar import process and forced TCP to issue a new tender for the import of the commodity," a TCP official said. Therefore, in a bid to keep the speculators away from tendering process and avoid any untoward incident in future, TCP in consultation with the ministry of commerce and with the board of directors'' approval blacklisted "Sadaat Business Group Dubai" and its local agent M M Elahi Traders and restricted them from entering any kind of business with state owned grain trader, he said. "Both companies can not participate in any future bidding of the Corporation," he added.
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