ISLAMABAD: Trading Corporation of Pakistan (TCP) paid in advance Rs 1.44 billion to sugar mills, for that, mills could not supply the required amount of sugar, says an audit report.
TCP purchased sugar for Utility Store Corporation (USC) and other government entities worth Rs 1.44 billion and paid advance despite sugar mills could not provide the stock.
According to Clause-10 of Contract” If the supplier default to supply contracted quantity of goods within the prescribed time, the TCP will forfeit Performance Bond/Bank Guarantee and the supplier shall return the payment (value of Stock) received by it from TCP immediately, along with a penalty equivalent to 100% of such payment plus mark-up@KIBOR+2.75% on the principal amount (value of the stock).
During Performance Audit of Trading Corporation of Pakistan for the year 2013-14 to 2017-18, it was observed that the management procured sugar stocks for delivery to M/s. Utility Store Corporation (USC) and other Government Entities.
The sugar stocks were purchased from various local sugar mills through fifteen tenders floated / opened on different occasions. TCP made 100% payment in advance to these Sugar Mills, but the sugar mills failed to provide the required quantities of sugar. Detail is as under:
Three sugar mills still has to supply till the time the audit was done.
Abdullah Shah Ghazi Sugar Mills, Thatta, District Badin had still to supply Rs 570 million of sugar, that is 11,215 tons. MACCA sugar mills Rs 259 million of sugar and Haq Bahu Sugar Mills has outstanding payment or supply of Rs 612 million.
