April 26, 2008	Saturday	Rabi-us-Sani 19, 1429

MULTAN, April 25: The Trading Corporation of Pakistan has failed to take action against defaulting suppliers for delayed delivery of imported wheat.

The Federal Food Committee (FFC), in the wake of ongoing flour crisis, had recommended action against the suppliers and shippers for their failure to deliver the imported wheat consignment in time.

In a letter to the food secretary on April 19, the copies of which were sent to the secretaries of commerce, finance and planning and prime minister’s principal secretary, FFC’s senior member Shaukat N. Tahir stated that “belated availability of imported wheat on account of non-fulfillment of contractual obligations on the part of suppliers/shippers, warrants punitive action with a view to deterring such failures in future and to boosting public confidence in the government interventions in the wake of ongoing flour crisis.”

After receiving the letter, the Ministry of Food, Agriculture and Livestock forwarded it to the TCP chairman for a punitive action.

In his letter, Mr Shaukat further stated that the shipper/supplier of delayed consignments, Tom Arnholt, Pacific Primate, Giovanna Iuliano, Placid Sea and Kestril-I qualify for being penalised.”

The letter further states “the performance bonds of the first vessel may have already been released by the TCP post-departure, the instruments in respect of the remainder are liable to be forfeited”.

In his letter, which was issued with the approval of the chairman of the committee, the senior FFC member had also proposed to Minfal to take appropriate action. Minfal Secretary Ziaur Rehman was not available for comments.

TCP Chairman Abdul Malik said that the performance bonds could only be forfeited in case of non-supply.

He stated that the TCP had two options, either to cancel the deal or to extend the date for shipment, and the prime minister had extended the date for shipment, so there was no justification of forfeiture of performance bond.

When the Economic Coordination Committee of the Cabinet had planned to import wheat, it was decided that the commodity must reach the seaport before March 31. However, the TCP issued tender papers for delivery of wheat before Feb 25 and the suppliers had submitted bonds of Rs300 million.

The FFC was constituted by former premier Shaukat Aziz to handle matters of wheat and to monitor its supply. The committee is still performing its job.

The TCP had returned the performance bond and other guarantees of $2,149,350 -- five per cent of the tender price of $42,987,000 -- to the Australian Wheat Board (AWB) on Dec 17, 2007, instead of forfeiting them as it had refused to supply the required wheat and no action was taken against those responsible.