ISLAMABAD - Auditor General of Pakistan (AGP) has revealed that Passco supplied 48,094.561 MT wheat to Afghanistan government against contracted quantity and Kabul paid much fewer amounts with the difference of $619,249 against the billed amount.
According to the details, the management of Passco vide its letter of February, 2011 informed the Ministry of Foreign Affairs, Islamabad that Passco had paid a huge amount of Rs 29,811,250 as additional interest charges to banks up to February 2011 on this unpaid amount due to delay in release of balance amount.
Audit was of the view that chances of release of this amount seemed to be remote because Passco neither took any performance guarantee nor any penalty clause for delayed payment in agreement.
Realising sensitivity of matter the issue was reported to management on Nov 18, 2011, and the management in its reply stated that penalty clause regarding delayed payment was not included being government to government transaction.
The recoverable is reconciled amount and matter has already been taken at government level. However, the reply was not considered convincing because Passco should had been made agreement at standard terms and conditions of the contractor agreement.
The DAC in its meeting held on January 27, 2012 and directed the management to pursue the case through Ministry of Foreign Affairs for recovery. The progress towards recovery was awaited till the finalisation of this report.
The audit report further said that according to contract dated 9th day of June 2008 signed between government of Pakistan and government of Afghanistan, the Passco will supply 50,000 metric ton of wheat at the rate of $287 per metric ton to government of Afghanistan.
As per clause 9 of the said agreement, the cost of wheat will be paid by the government of Afghanistan immediately on receipt of each consignment. The Afghan Ministry of Commerce will deposit the cost of consignment received in the account of Passco and confirm through Afghan embassy at Islamabad.