Provincial exchequer may suffer a loss of Rs 147.66 million following the decision of Sindh High Court in favour of Muhammad Anwar Traders, the highest bidder for 69,000 tons government old wheat stock of 1999-2000 crop.
On recommendations of former provincial Food Secretary, the Sindh government had invited bids for the disposal of 1999-2000 crop wheat as unfit for human consumption.
Offer of Muhammad Anwer Traders, being the highest, was accepted at Rs 6370 per ton for total quantity of 69,000 tons against the government release price of Rs 8,510 per ton and open market price of Rs 10,400 per ton, and letter of acceptance was issued to the successful bidder on August 15, 2003, following deposit of requisite amount.
But the government withheld the release order when the matter appeared in press pointing to element of corruption, loot and plunder in provincial food department.
The lowest bidder sought relief from the court against the decision of the provincial food department based on the apprehension that the bidder might lift quality wheat mixed with old stock with the connivance of food officials.
The Court granted him relief, observing that apprehensions of food minister could not override the provision of law.
The food department, it seems, is victim of its own follies as its ill-conceived policy has not only resulted in scarcity of wheat flour but also has led to price hike.
The release of 5,0000 tons wheat to flour mills during Eid-ul-Fitr holiday, when the flour mills in the province were closed, was termed as worst kind of illegal government wheat trading and could be described as another example of ineptness of the food department which had further aggravated the situation.
The federal government has also taken notice of the situation and regretted the poor performance of the provincial food department before the court of law and suggested to file a revision petition.
The provincial Food Secretary, Muhammad Perihar, who arrived here on Sunday morning to co-ordinate with grain merchants and grinding units, told Business Recorder that the revision petition would be filed on Monday, January 12, before the full bench of Sindh High Court, in national interest.
He said efforts were being made to develop a corruption-free culture to provide relief to common man and to pass on the subsidy down to the lowest level of the population.
He said efforts were also being made to beef up the wheat stock, and stock from Punjab has started arriving and soon the situation would be brought under control.
Two more food officials, including district food controller of Dadu have been suspended with immediate effect.