Despite receiving a lowest bid of Rs 400 million for the out of business Dadu Sugar Mill, the Sindh government, under influence and in violation of all formalities, sold the mill at a throw-away price of only Rs 99 million to Naudero Sugar Mill Limited, Pakistan Today has learnt.
Interestingly, the industries and commerce department’s accounts reflect that the dates of auction of the mill fall in audit year 2011-2012.
The Dadu Sugar Mill (DSM) was the property of Sindh Sugar Corporation Limited which was incorporated on July 21, 1976 with 100 percent equity of Government of Sindh as an unlisted public limited company. The company took over the management of DSM from the former Board of Management.
The mill was established in the year 1977-78 with a cane crushing capacity of 2,800 tones per day (TCD). The mill, since its establishment, could not manage to cover its operational costs, sustaining massive losses.
In view of the situation, the industries department decided to dispose-off the sugar mill through the Sindh Privatisation Commission in 2002. The corporation invited bids on 26 June, 2002 and 28 September, 2002 through press media. In response to the advertisement, an offer of Rs 156 million was received which was much more or less equal to the assessed value of Rs 465.273 million, according to an audit report. The efforts made by the commission could not yield tangible results and it was decided by the cabinet committee on privatization in a meeting dated July 14, 2005 to liquidate the mill along with assets through the Sindh High Court.
The official assignee was appointed through a court order dated September 8, 2006 with the directive to carry out liquidation of the Dadu Sugar Mill. The official assignee invited bids during the period January 10, 2007 to October 18, 2007. The highest bid received was Rs 400 million against the assessed value, the report said.
The industries department moved the case to the competent authority on September 11, 2007 for decision and the same was approved that the highest bid of Rs 400 million may be accepted without any conditions and any payment being made in installment. The decision however could not be materialised and the mill was not liquidated until May 2008.
On May 7, 2008, the official assignee was requested again to expedite the process of re-auctioning of assets of Dadu Sugar Mill. The official assignee invited offers through various newspapers and the highest offer received was Rs 400 million but the mill was sold for Rs 90 million to the management of Naudero Sugar Mills Limited. This resulted in a gross loss of Rs 375.273 million for the government.
The matter was reported to the department in December 2009 but no reply was furnished. However, in the departmental accounts committee meeting held on 2 January, 2011 it was stated that the whole process was conducted by the official assignee of the Sindh High Court which remained cognizant of the facts that the competent authority accorded approval of the offer on 11 June, 2008. The reply of the management was not satisfactory as the mill was auctioned below the assessed value. When contacted, Secretary Industries and Commerce Zamir Ahmed Khan told Pakistan Today that he had no idea about the sale of the mill as it was done in tenure of another secretary, Ali Ahmed Lund. However, the Auditor General Sindh recommended that a high powered committee be constituted to investigate the facts of the sale of the mills below the assessed value.
And where is SC on this issue…..taking suo moto notice on sale of PakSteel during Gen Musharraf period…..?
I think the guys who were selling the mill,their math was poor. They did not know what is the difference between 400 and 99. You could also call it Highway robbery.Who cares? They can sell tax payers assets which ever way they want.
By the way those people who sold it for 99, put them in jail for rest of their life in solitary confinement and confiscate any assets they have under their name or their spouse or children or servant's name. Put their name on ECL.
This is too meagre amount of looted money to be noticed by those who matter, because of their priority to first take notice of cases involving robbery of billions.
Comments are closed.