Saturday, April 10, 2010

Gilgit Baltistan weat scam; Govt suffers losses of Rs 2.6 billion

ISLAMABAD: Contractors in the Directorate of Civil Supplies and Transport of Gilgit have caused a damage of over Rs 2.6 billion to the Government of Pakistan while transporting wheat from Islamabad to Gilgit-Baltistan in the last three years, a national newspaper reported


The Audit and Inspection Report on the Accounts of Directorate Civil Supplies and Transport, Gilgit Baltistan for the year 2006 to 2009 shows that the directorate has caused a loss of Rs 2,595,347,026 to the national exchequer under the domain of less recovery of sale price.

Para 04 of the audit report says: “As per provisions of para-26 GFR, it is the responsibility of every controlling officer to see that all sums due to government are regularly and promptly assessed realised and credited in the government account. As per Economic Coordination Committee (ECC) decision dated 17/04/2002 and subsequent clarification by Finance Division, the cost of transportation of wheat and handling charges are to be borne by government. During the scrutiny of record of Directorate of Civil Supplies and Transport, Gilgit, it was observed that the management had not passed on even the purchased cost fully to the purchaser, which resulted into loss to the govt.

“For 2006-07, some 108,096.204 metric tonnes wheat was transported from Islamabad to Gilgit Baltistan. The purchase price of this wheat was Rs 12,331/M tonnes while it was sold for Rs 8,086/M tonnes, thus, causing a loss of Rs 437,653,645 to the national kitty in 2006-07. The next year 120,003.466 M Tonnes wheat was transported to Gilgit-Baltistan and was sold for Rs 8,072/M tonnes while its purchase price was Rs 13,522/M tonnes. This year, the government had to bear a loss of Rs 654,018,889. In 2008-09, some 136,511.529 M tonnes of wheat were transported to the Northern Areas and was sold for

Rs 8,087/m tonne while its purchasing price was Rs 19,102/M tonne, hence causing a loss of Rs 1,503,674,492.

“It was a serious violation to the provisions of GFR and ECC decision on the subject. Audit proposes that responsibility of loss may be fixed and amount recovered from defaulters or position may be clarified to audit or otherwise.”

The department, in its reply, has mentioned that the ECC and the cabinet during their meetings dated 28-03-2000 and 19-04-2000 had decided that the current issue price of wheat to consumers of NA was maintained.

The auditor had replied to the department that the reply was not correct as it was clarified by the Finance Division and subsidy will be only in the transportation charges. Further, the issue price for every next year was issued with the approval of ECC.

Moreover the audit report also points out that an extra amount of Rs 10.4 million was paid to NATCO, a corporate organisation, and Rs 4.5 million to different contractors on account of escalation on transpiration charges against the rules. NATCO was also paid Rs 53.89 million extra in contradiction to contract agreement.

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