ISLAMABAD: The state-run Trading Corporation of Pakistan (TCP) has once again opened a letter of credit for the supply of 50,000 tons of sugar in the name of the same party, whose previous contract was cancelled on Wednesday for failing to honour an agreement with the corporation, said a top TCP official on Thursday.
TCP Chairman Anjum Bashir confirmed that the corporation on the advice of its legal adviser had treated the March 6 bid of the said company as a separate contract and it had nothing to do with the TCP’s decision of Wednesday.
“I have also warned Sadan General Trading (SGT) that if this time it failed to meet its commitment, the TCP would blacklist it for further trading in Pakistan,” the TCP chairman told The News by phone from Karachi.
No one is held accountable for this repeated failure and the TCP chairman and senior officials at the Ministry of Commerce are reportedly “dancing to the tunes of two directors of the TCP,” official sources said.
The TCP cancelled the SGT’s first contract for the supply of 50,000 tons of sugar, even after they were given an extension.
An official disclosed that the TCP management had opened the SGT’s second letter of credit upon the insistence of TCP’s directors, and it was opened by National Bank of Pakistan (NBP) and advised through United National Bank Limited’s London branch on Wednesday.
Pakistan had an opportunity to cancel the fresh contract as the party on Wednesday sent a letter confirming the forfeiture of its bank guarantee. Sources privy to the developments claimed that one of the TCP directors having close links with the SGT had pushed for opening of Sadan’s new letter of credit.
“Instead of claiming damages from the SGT through legal action, the TCP is busy opening new letter of credits for the defaulting party,” said one sugar trader.
This issue was also raised at the previous ECC (Economic Coordination Committee) meeting and it was emphasised that the TCP should not entertain defaulters, but the corporation did the opposite.
At the ECC meeting on March 9, held under the chairmanship of the prime minister, it was decided that the TCP would import 1.20 million tons of sugar with duty concessions.
The ECC had also asked the Commerce Division and the TCP to streamline the mechanism and were advised to remain vigilant in floating tenders and examination of bids. They were also asked that the procurement of sugar should be expedited to facilitate the general public.
Source: http://www.thenews.com.pk/daily_detail.asp?id=233238
0 comments:
Post a Comment