The phosphatic and potash fertiliser importers in connivance with the Ministry of Food, Agriculture and Livestock (Minfal) officials have fraudulently minted millions of rupees on the subsidy the prime minister announced at Rs 250 per 50-kg bag.
Prime Minister Shaukat Aziz announced Rs 250 subsidy on a fertiliser bag on September 27, 2006 which was widely acclaimed by the people affiliated with the agriculture sector, but what went wrong was that an organised group ganged up and minted money on the subsidy.
Since there was a move in Minfal that the government was going to announce a subsidy on the fertiliser, the importers started making deals with Minfal to get the subsidy on their old stocks as well as it was also an established fact that subsidies are given on fresh imports and production the importers were not expecting to get a subsidy on old stocks.
Nevertheless, they talked to Minfal officers and jointly managed to get a subsidy on the available stocks on September 15, the Minfal joint secretary directed all the five importers to furnish a list of their stocks.
They provided exaggerated figures of their stocks to Minfal for example, the Chawla International had shown 58,000 tonnes in stocks in the mandatory report submitted two months earlier without subsequent imports.
After the understanding they showed 87,000 tonnes in their godowns this means that there were 1,740,000 bags in the godowns and with a subsidy of Rs 250 per bag, the company claimed Rs 435 million the origination not only minted money on the subsidy policy on old stocks but also earned Rs 145 million by showing 29,000 bags in excess.
The United Agro Chemical had 42,000 tonnes, including 30,000 DAP and 12,000 MOP/SOP/ MAP, but they showed 48,000 tonnes (42,000 tonnes DAP and 16,000 tonnes of MOP/SOP/ MAP) and claimed a subsidy of Rs 290 million they ripped Rs 80 million off the government by showing 16,000 tonnes in excess of their existing stocks.
The Pastric Charters had originally 14,000 tonnes in stocks, but it illegally earned Rs 45 million extra by showing 9,000 tonnes of bogus stocks AL-Hamza and Ahmed ship-breaking company originally had 3,000 tonnes but showed 11,000 tonnes including 5,500 tonnes DAP and 5,500 tonnes MOP they claimed Rs 55 million subsidy and minted Rs 40 million additionally by showing 8,000 tonnes over and above what they had. The Khalid Javed & Co had no stocks in June 30, but they showed 9,500 tonnes of DAP and raked in Rs 47.5 million subsidy.
The Minfal had constituted committees to physically verify these stocks. The committees could not physically see each and very bag as their numbers in the godowns shown by the importers was 3.58 million bags (179,000 tonnes) that elaborate exercise was reduced to verification of stocks by some plus minus in the tonnage of the total declared stocks.
The government will release the subsidy in three instalment the first instalment of 33 percent of the total stock was released on November 1, and the second instalment of 33 percent will be released next month and finally 34 percent will be released.