The Ministry of Industries and Production (MoI&P) is reportedly advocating recovery of Rs 839.65 million from the Trading Corporation of Pakistan (TCP) as cost of Wayen Poly Propylene (WPP) bags arranged by National Fertiliser Marketing Limited (NFML) for transportation of urea, sources told Business Recorder.
The MoI&P has also claimed that all codal formalities under PPRA rules 2004 have been adhered to while granting the contract for procurement of WPP bags. According to the MoI&P, to bridge the supply-demand gap in fertiliser and to save the farmers from shortage and black marketing, the government had to import urea through TCP, and NFML was entrusted with the distribution of urea throughout the country.
The TCP as per past practice used to supply imported fertiliser duly packed in WPP bags and cost of such bags was always included in the invoice against dispatches. However, on October 8, 2009, TCP intimated that this time its management had decided that the bags will not be arranged/supplied by TCP for imported urea. Therefore, NFML had to arrange bags on its own from October 2009 onwards. It procured WPP bags (inserted liner) after fulfilment of all requisite formalities with the approval of the competent authority.
Accordingly, NFC/NFML had to arrange WPP bags at respective ports for dispatches of imported urea and incurred an amount of Rs 839,651,042 for the purpose, from October,2009 to January,2011.
The following companies supplied the bags: Lahore Polypropylene (Pvt) Ltd, Lahore; 11,668,500 bags (Rs .359,734,455); Mian Nazir Sons Industries (Pvt) Ltd, Karachi, 8,012,500 bags (Rs 254,352,012); Arfeen Industries (Pvt) Ltd, Lahore 5,078,500 bags (Rs 156,467,698); Poly Pack Industries (Pvt) Ltd, Lahore 2,005,000 bags (Rs 67,758,925); Atlantic Surveyors (Pvt) Ltd, Karachi (Inspection Charges) (Rs 1,337,952); Total: 26,764,500 bags; Rs 839,651,042.
The MoI&P says that TCP is not adjusting the cost of WPP bags arranged by NFC/NFML unless it is approved by ECC for such adjustments. "All codal formalities under PPRA rules 2004 have been adhered to while granting the contract for the procurement of WPP bags, and no violation/deviation has been made from PPRA Rules 2004.
The expenses incurred by NFML are subjected to audit by Commercial Audit Wing of Auditor General of Pakistan and Private Sector Auditors (namely Hyder Bhimji & Co Chartered Accountants, Lahore), appointed by Board of Directors as per Company Law," sources said. "We have sought ECC approval for adjusting the cost of WPP bags amounting to Rs 839,651,042, incurred on purchasing 26,764,500 bags subject to the actual claim/reconciliation per consignment," sources added.