ISLAMABAD: Competition Commission of Pakistan (CCP) has barred Utility Stores Corporation (USC) from awarding the contract of multi-million rupees automation project to a foreign company on a petition filed by local venders, citing discrimination in drafting of Request for Proposals (RFPs).

This was disclosed at a meeting of Senate Standing Committee on Industries and Production headed by Senator Hidaitullah. Minister for Industries and Production, Ghulam Murtaza Jatoi also attended the meeting.

Managing Director USC, Waseem Mukhtar, informed the committee that the CCP bench assumes that their decision will be finalised by the first or second week of March. Next hearing is scheduled for Friday (today).

“We will accept the verdict of CCP and proceed accordingly as the regulator’s judgment will be impartial,” he added.

The committee has some observations on the process of automation project but as it is a subjudice matter, USC cannot offer comments on it, Mukhtar added.

Digital Research Lab Pvt Ltd approached Islamabad High Court (IHC) and CCP on the grounds that RFP was restricted for them.

Minister for Industries and Production Ghulam Murtaza Jatoi also spoke on the automation project. He said that when he assumed charge of the Ministry, he urged the USC management to automate stores network so that corruption and theft can be checked. He said automation will not only improve the entire system of USC but also flawed contracts would be avoided.

“I had written two letters to the USC management and raised objections on the RPFs prepared for the automation projects. Standing Committee raised observations afterwards,” the Minister added.

Senate Standing Committee grilled top management of Utility Stores Corporation (USC) for selling substandard and less weight products to the consumers and maintained that the quality of goods is very poor and fungus-inflicted daals are being sold at USC outlets.

Senator Kalsoom Parveen said that it is the responsibility of vendors to provide quality check certificates at the time of delivery, and asked why USC procures outdated products. Managing Director acknowledged that there was no quality check mechanism of products within the USC. However, after the Supreme Court of Pakistan took suo moto notice of Ghee/ edible oil quality, the management discussed the issue in-house and decided to outsource quality assurance responsibility to a private firm with a close relationship with the accredited lab so that quality of products can be ensured at USC outlets.

USC advertised in the newspapers for hiring the services of a quality assurance firm, he said, adding that pre-bid meeting was held on February 8, 2017 whereas bids will be opened on February 27, 2017.

MD USC argued that the organisation will also improve its quality assurance mechanism through imparting training to its own employees from Pakistani Institute of Management, in addition to hiring of a professional private firm for this purpose.

“We are phasing out quality assurance responsibility to a private professional company which also has confidence of vendors that testing of their products has been done accurately,” he continued

The Managing Director USC maintained that with a strict quality check mechanism, those companies which sell below standard products would gradually be ousted.

Standing Committee directed USC management to blacklist those firms which supply substandard products and also take action against responsible officials of the department.

The Managing Director USC informed the committee that USC has banned its own Ghee/edible oil brands and now is just procuring branded Ghee/ edible oil.

Additional Ministry of Industries and Production, Sher Ayub Khan informed the committee that PSQCA, an organisation of Ministry of Science and Technology, issues quality certificates. However, Senator Ilyas Bilour who also does business of Ghee/edible oil, surprised the committee by claiming that the employees of PSQCA who visit industrial units just “get money” and go back.

He further stated that USC procured Ghee/ edible oil from Karachi-based parties which are involved in direct filling which is the main reason for low standard and low weight. He also stated that M/s Lever Brothers does not supply real Dalda to USC as it is an expensive product; and added that USC’s payment mechanism is not efficient.

“We are also considering starting invoice pricing mechanism for payments to vendors and negotiating with the banks,” MD USC said.

According to MD, USC has returned Ghee/ edible oil brands to Ghee Mils whereas stocks of other Mills has already been exhausted.

Minister for Industries and Production said that improvement has been noted in the USC since the new Managing Director assumed charge adding that with ban on its own Ghee/ edible oil brands, improvement has already been witnessed.

The Managing Director USC further informed the committee that first case has been registered against 10 employees of USC in Balochistan for embezzlement of Rs 350 million.

The committee was informed that the USC Board has approved recruitment of 1400 employees on vacant posts in Balochistan. Besides others, Senator Taj Haider and Senator Malik Najum ul-Hasan also attended the meeting.—MUSHTAQ GHUMMAN