USC MD covers his tracks of alleged corruption

The incumbent managing director (MD) of the Utility Stores Corporation (USC), Sultan Mehmood, has wrapped up his own explanation orders sought by his predecessor, Mohammed Arif Khan, for being involved in serious irregularities and violations of PPRA rules, concealing of facts, deceiving seniors and tampering with the record, which amounted to misconduct leading to wrong decision-making, causing a loss of millions of rupees to the national exchequer.
The findings of a report on alteration of file pertaining to the procurement of fixture and equipment for stores of the USC said that a tender committee headed by joint secretary of the Ministry of Industries had been formed to order a tender of USC. Later, the USC officials tampered with the decisions of the first committee and deceived the then MD, who allowed a second committee to review the decisions of the former committee.
The report said the second committee of USC officials allowed some companies, who were not part of the open tender, to lower their bids illegally. “True picture of earlier recommendations made by the tender committee headed by the joint secretary of industries was never painted before the MD. Pretext of a supply of having different equipment which if purchased from one suppler shall carry fitting complications was not a valid excuse when the tender document carries drawings of the equipment as well and this fact was also concealed from the MD. Legal position of the recommendation made by the second committee was never presented, which was responsibility of the officer who forwarded the case, thus deceiving the MD for seeking approval of the manipulated case,” the fact-finding committee’s report said.
The report further said that the MD allowed recommendations of the new committee with a condition to follow rules, policy and procedure of the USC, which were categorically bound the officer to follow before further processing the case for issuance of supply orders or making payments for that purposes. While processing the case file, the senior general manager (P&TD) observed certain ambiguities leading to illegalities in the tendering process. After appreciating the fact, the MD directed the senior general manger (A&V) and Amin Ahsan Gill, general manager (Legal) to look into the case and put up a factual position within seven days, the document added.
The inquiry committee said the second tender committee had tampered with the open tender file and committed serious irregularities after the elimination of the committee headed by the joint secretary of the ministry. “The second committee has acted in a manner which can be said to have committed abuse of official authority beyond their capacity and jurisdiction. The case file was manipulated for obtaining approval of the Managing Director by alteration of file and concealing of facts from the competent Authority. Serious violations of the PPRA Rules have been committed and the process of negotiations adopted for accommodation of un-entitled parties was against the available law rules and natural justice,” said the fact-finding committee. “The officer who has initially prepared tender document is accused of not making it module wise, thus is guilty of incompetence and is also responsible for misguiding tender committee and the competent authority,” it said.
The then managing director, Mohammed Arif Khan, after receiving the fact-finding report drafted by Mumtaz Ali Khan, senior general manger (A&V) and Amin Ahsan Gill on June 3, 2011, directed to seek an explanation from then senior GM (now MD) Sultan Mahmood, GM MH Gillani, GM Javed Manzoor Ghouri, and GM Zafar Afzal.
“Reply to the explanation should be placed before me in seven days. For the time being, payments and securities should not be released and further orders should not be placed with them and stocks should not be received from these vendors until an opinion is obtained from legal adviser on legitimacy of working with them. This file and other related documents will be kept by the senior general manager (A&V),” Arif Khan directed. However, within days, Arif Khan was transferred and Sultan Mehmood was given the acting charge of the managing director. Soon after taking over the charge, Sultan Mehmood wrapped up the explanation process and until now, no action has been taken against any of the accused.
When contacted, MD Sultan Mehmood said explanations were a routine business in official business. “Explanations are a routine business in official business. It is nothing new as I seek explanations from others while others seek explanations from me,” he said. Mehmood also did not respond to the queries raised by Pakistan Today.