Prime Minister's Advisor on Industries Basharat Raja on Tuesday confirmed massive embezzlement in National Fertiliser Market Company (NFML) and arrest of a couple of officials by agencies. The NFML scam had appeared in media, including Business Recorder, during Manzoor Wattoo's tenure as minister.
However, the Federal Investigation Agency (FIA) initiated an inquiry after his departure from the Ministry of Industries, The then minister for industries Hazar Khan Bijarani, was also implicated in the scam. "I confirm embezzlement in urea distribution in the past, but cannot name anybody. We have sought inquiry reports from FIA and National Accountability Bureau (NAB)," Basharat Raja said. In his first interaction with the media, he committed to take appropriate action against responsible officials as soon as the Ministry would receive the inquiry report.
He said that the Ministry of Industries has already penalised about 200 fertiliser dealers for selling urea at higher prices to growers, besides suspending their licences. Basharat said that 'Industrial Policy' "is in its final stage, but first a presentation would be given to Minister for Industries Pervez Elahi." After that, he said, the draft policy will be submitted to the Prime Minister for approval.
Basharat also confirmed that the government "is facing difficulties" in National Fertiliser Corporation (NFC). Pakistan's total annual urea demand is about 6.5 million tons, whereas total production capacity is 6.9 million tons, which implies that the country is able to export surplus urea, if gas is made available to fertiliser plants.
He said that the government intends to import 1.2 million tons of urea, a process which would be completed by January 8, 2012. The government is selling urea at Rs 1300 per 50 kg, whereas private sector is selling urea at Rs 1580 per bag.
Basharat criticised Punjab government for accusing federal government in distribution of urea but failing to bring sufficient evidence in this regard. "I ask Punjab government how many people have been arrested by the provincial government, who allegedly were involved in urea embezzlement?" he queried. He said that Punjab DCOs have raided most of NFML godowns and scrutinised their records but found nothing illegal in urea distribution.
He said that provincial governments can also import urea, but they would face foreign exchange problems. The Prime Minister's Advisor was also informed that the Chief Executive Officer (CEO), Engineering Development Board (EDB), who allegedly made huge payment at the top level to get this portfolio, has issued a statement against the auto manufacturers, after failing to get dealership. Basharat expressed surprise at this statement against car saying that EDB has nothing to do with auto sector as it now falls within the jurisdiction of Ministry of Production.
The Prime Minister's Advisor refuted allegations of massive appointments in Utility Stores Corporation (USC), saying that the strength of new appointments has not been more than 150 during his tenure. He, however, did not disclose the name of a top office holder in government who recommended the name of incumbent Managing Director of USC. "Army does send names of retired military officials to the Establishment Division for appointment and his appointment has been made on the recommendations of the military," he said, adding that the Managing Director of NFC is also a retired military officer.