WASIM IQBAL
ISLAMABAD: Public Accounts Committee (PAC) on Wednesday referred a case related to the theft of 1,115 metric tons of urea of National Fertilizer Marketing Limited (NFML), to National Accountability Bureau (NAB).
The committee met with its chairman Syed Khurshid Shah in the chair and examined the audit report of the Ministry of Industries for the year 2010-11.
According to the audit report, 1,115 metric tons of fertilizer was dispatched through carriage contractor M/s Abdul Rasheed Jadoon during 2010, which did not reach the designated destinations. The contractor reported to NFML through his letter dated May 14, 2010 that the consignment had been stolen by thieves during transit and requested to adjust the cost of fertilizer at Rs 15,600 per metric tons against his pending freight bills of Rs 14.6 million and for the balance amount of Rs 2.745 million, he handed over the CDR to NFML. The damages of Rs 4.460 million at Rs 40,000 per ton for 1,115 metric tons were not recovered from the party as required under the provisions of contract with it.
The matter was reported to the management and the ministry on November 30, 2010. The management in its reply dated December 23, 2010 stated that the competent authority as per agreement had waived off the penalty. The reply was not acceptable as theft of 1,115 metric tons was not possible and not proved through record. The chance of black marketing by the carriage contractor can not be ruled out, as the sale price of urea fertilizer at that time was much higher due to shortage. Further, collusion of the NFML staff with the carriage contractor was not investigated and instead of forfeiture of security and blacklisting of the carriage contractor, the long distance charges were waived off. The audit objected that undue favour was granted to the carriage contractor.
On January 17, 2011, it was decided to refer the case to FIA for investigation against the transport contractor, as the chances of black marketing could not be ruled out.
Managing Director, NFML, Waseem Mukhtar, said they had issued show cause to the transport contractor to appear before the management on March 10 and explain his position.
The member committee disagreed with the MD NFML about giving the contractor a chance for hearing. They said it might be theft by contractor himself. In his ruling, Chairman PAC, Syed Khurshid Shah, said that 120 trucks loaded with fertilizer could not be stolen. He said the matter must be referred to NAB for investigation.
In another case, the PAC chairman directed the officials of Wapda to settle a dispute between National Fertilizer Corporation (NFC) and Wapda.
Accrued profit on investments amounting to Rs 114.723 million as on June 30, 2010 included Rs 24.512 million receivables from Wapda First Sukuk certificates on October 22, 2009 and April 22, 2010 but the same was not realised on the due dates.
Secretary Ministry of Industries and Production, Raja Hassan Abbas, said that by fraudulent and non transparent manner, the payment of dividend on Sukuk certificates was transferred to some individuals of the ministry of industries.
He said that the original Sukuk certificates were in possession of NFC, but the dividend was given to individuals. The matter was in the court and efforts were under way to recover the amount from Wapda, he added.
The committee also took up the matter of appointments of 3,830 persons in violation of rules and regulations in Utility Stores Corporation. In 2008, no objection certificate from the Prime Minister Task Force was obtained for 3,520 posts whereas 708 employees were appointed in excess of the approval in seven categories.
The Secretary Industries admitted that the permission for variation in posts was not taken by competent forum. He said that the establishment division also refused to regularize the posts. The PAC directed to try to regulate the posts again.
