AGP detects Passco's Rs 7.2 billion outstanding wheat bills

The Auditor General of Pakistan (AGP) has detected Rs 7.2 billion outstanding wheat bills of Pakistan Agriculture Services and Storage Corporation (Passco) against Khyber Pukhtunkhwa and Azad Jammu and Kashmir governments. Auditor General of Pakistan's report 2010-2011 available with Business Recorder reveals that PASSCO supplied wheat to the provincial governments but an amount of Rs 7.2 billion was outstanding against KP and AJK.
The report says that PASSCO was supplying wheat to Khyber Pukhtunkhwa, AJK, Gilgit-Baltistan and Balochistan but the repayment of bills of PASSCO was not regular especially from Khyber Pukhtunkhwa, when the quantity dispatched from PASSCO godowns did not reconcile with quantity received by the food department KP due to missing trucks and en route shortages.
PASSCO was responsible to hand over the wheat to the authorised representatives of KP Food Department but the management of PASSCO was unable to settle the matter of missing trucks with the KP Food Department which resulted in loss due to payment Rs 605,615 per day in the shape of mark up on outstanding amount, as entire operations of PASSCO were based on borrowed funds from a consortium of banks on the payment of heavy mark-up.
PASSCO paid mark up of Rs 217.595 million, because of outstanding amount from AJK Food Department up to May 31, 2010. Similarly an amount of Rs 1,883,969 was paid as mark up on the outstanding amount from provincial government Gilgit-Baltistan. The PASSCO has paid Rs 398.053 million as mark up on these outstanding amounts to banks up to September 20, 2010. Presently, PASSCO has paid Rs 9.659 million as mark up on outstanding amount from Food Department Balochistan up to August 31, 2010.
The matter was reported to the management on October 18, 2010 and the Ministry on December 4, 2010. The management in its reply dated November 2, 2010 stated that PASSCO constantly reminded the agencies for repayment of wheat bills and PASSCO might visit the concerned agencies to accelerate payments. DAC meeting could not be held by the PAO in spite of request vide letter No 3839/DAC/Food and Agriculture/2010-11 dated December 28, 2010 followed by written/verbal reminders.