- Summary to transport urea was moved after it had already expired
- Report on issue is being kept from both Houses of parliament despite president’s approval on April 16
Federal ministers may be touting tall claims about their pro-farmer policy, but the 2014-2015 audit report on federal government accounts has revealed a multibillion-rupee debacle that proves quite the opposite.
The government sold expired urea worth Rs 11 billion to the farmers’ community. No action has been taken against the officials and cabinet ministers involved yet. The federal government is reluctant to lay the report before both the houses of the parliament despite the fact that the president already approved of it on April 16, Pakistan Today has learnt.
The audit report, which reflects the performance of the first financial year of the Pakistan Muslim League-Nawaz (PML-N) government, also reveals how incompetence of the cabinet ministers and top officers had led to the expiry of high quality imported urea fertiliser. Delivery to farmers’ was delayed until the point that the urea expired.
The report of the audit year 2014-15, which is exclusively available with Pakistan Today, brings to the spotlight tales of incompetence shown by many government officials, which caused heavy losses to the national exchequer.
HEAVY LOSSES:
The audit report states that the National Fertiliser Marketing Limited (NFML) managing director (MD) vides letter no. MD-021 dated March 27, 2014, addressed the Ministry of Industries & Production, federal secretary. He informed that a stock of 0.300 million metric tons of imported urea fertiliser was available with NFML, whose shelf life was only three months.
The NFML MD added that the cost of the urea was around Rs 10 billion, calculated at Rs 1,786 per bag. He added that upon expiry, urea tends to harden by absorbing atmospheric moisture; hence, the stock must be liquidated within two months to avoid a huge loss to the national exchequer.
However, the audit report says that the Ministry of Industries & Production took exactly three months to move a summary for the Economic Coordination Committee (ECC). The summary was submitted on June 24, 2014 seeking a reduction in prices. By the time, the urea had already expired, unfortunately.
Para 5 of the summary of the Ministry of Industries & Production for ECC dated June 24, 2014 states that the ECC of the cabinet is requested that the average transportation cost of Rs 20 per KG Urea from warehouse of the NFML to dealer’s store may be approved.
The ECC of the cabinet in Case No. ECC-94/15/2014 dated July 4, 2014 considered the summary and approved the proposal contained in Para 5 of the summary, without considering the fact that the fertiliser had expired a month ago.
This tale of ignorance did not stop here. The government assigned the task of procurement to the Trading Corporation of Pakistan (TCP). They were to obtain the urea and sell it through NFML outlets to poor farmers, who were given no information that the urea they were buying had already expired.
The management replied that the audit team had made its observation merely based on the NFML letter No MD-021 dated March 27, 2014, cautioning that the massive stock urea might deteriorate if the same was not liquidated within a few months.
The ministry contended that the urea had been disposed of and no complaint had been received from the farmers’ community. The ministry also said that the amount of Rs 11 billion had been paid by the farmers and not the federal government.
The ministry also contended that the matter of shelf life of urea had been discussed in Fertiliser Review Committee meeting in presence of all stakeholders, including representatives of local urea manufacturers, NFML and Planning Division. The ministry said that it was agreed that the chemical components of urea, whether local or imported, was of such nature that it could be stored for years without any divergence from its original composition.
However, the audit did not accept the reply by the ministry because the summary for the ECC was based on the comments and apprehensions of the NFML. Moreover, the minutes of the Fertiliser Review Committee dated April 15, 2014 did not mention anything about the shelf life and efficiency of the urea. It was the responsibility of the state to ensure that quality products were provided to the farming community, the report added.
The departmental accounts committee (DAC) in its meeting held on January 1, 2015 directed the management that the case may be referred to NFML and Ministry of Industries & Production. The reply received from them was to be provided to the audit.
The audit also recommended that the matter may be inquired and responsibility must be fixed for the loss.
