Ministry of Food and Agriculture would reopen the case pertaining to wheat imported from USA at a higher rate, inflicting a $1.056 million loss on national exchequer. Director General Federal Audit said that audit department efficiently brought the case to the notice of the authorities in 1997 soon after the scam, but no action has so far been taken.
Ministry of Food and Agriculture placed orders of 765,000 metric tonnes of wheat to be imported from the US during shipment period of January-March 1997. The wheat was purchased in 52 small lots ranging from 10,000 metric tones to 20,000 metric tones each at higher rates. The bidders quoted higher rates, resulting in extra expenditure of $1,056,330 for the national kitty. The correct procedure was to make purchases from the lowest bidder but in case he could not provide the total quantity, then negotiations should have been made with other bidders to slash the rate in conformity with the lowest bid. Otherwise, re-tendering should have been done for purchase of the balance quantity.
The audit account of wheat procurement for 1997-98 was discussed in National Assembly''s special public accounts (PAC) committee on Thursday. Additional Secretary, Ministry of Agriculture, Khizer Hayat assured the committee that ministry would vigorously pursue the case and submit the report to implementation committee of PAC. He further informed the PAC that in view of audit observations MINFAL has also instructed the PAREP Washington to increase the minimum weight of lot to be purchased from 10,000 tons to 25,000 tons. He said it is established that audit para is based on irregularities during the import of wheat from USA. The trade minister, Pakistan Embassy Washington DC posted during 1997-98 had not provided sufficient material to the ministry in spite of several requests. Early departmental inquiry revealed that the insufficient record could not be instrumental in fixing the responsibility.
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