USC defying PPRA rules: substandard goods being supplied to consumers

The USC is reportedly defying Public Procurement Regulatory Authority (PPRA) rules, and supplying substandard goods to consumers, sources in the Ministry of Industries told Business Recorder. Senate standing committee on industries, headed by Ishaq Dar, in its meeting on Saturday took serious note of supply of substandard goods to consumers, especially during Ramazan, despite the Rs 2 billion subsidy on 18 essential items that include flour, ghee, pulses, basen, drinks and squashes, rice, dates, tea, milk, etc.
The amount of subsidy was earmarked in the budget, approved by the Cabinet. However, it remains untargeted as both the rich and the poor can procure subsidised items from Utility Stores Corporation (USC). Prime Minister''s Advisor on Industries, Muhammad Basharat, is looking after the affairs of USC with the consent of Industries Minister Pervaiz Elahi, father of Moonis Elahi who is facing embezzlement charges in the multi-billion rupees National Insurance Corporation Limited (NICL) scam.
"We have handed over some samples of substandard items to the Secretary, Industries who will send them for testing to the laboratory, after which the committee will recommend action against those responsible," said Senator Ilyas Bilour, brother of Secretary, Industries, Aziz Ahmad Bilour. He also acknowledged that USC is not following PPRA rules in its procurement of commodities. Former Managing Director, Arif Khan, a District Management Group (DMG) officer, who was allegedly removed by Industries Minister Pervaiz Elahi for not implementing his orders, had given stranding instructions to the USC officials to strictly adhere to PPRA rules in all procurement matters. However, with his departure, the whole scenario has changed, said an official of USC.
The official also said that the incumbent General Manager (Procurement) is among those top officials of the USC who are facing corruption charges. He was arrested by National Accountability Bureau (NAB), and is on bail, the official added. General Manager (Procurement) was not available for comments. Law Minster, Punjab, Sana Ullah urged Pervaiz Elahi to immediately resign and tender an apology to the nation for adulteration in daily use items in Utility Stores.
Sources said that currently USC is not procuring goods, especially rice, pulses, basen etc worth millions of rupees through tenders but through negotiations with the pre-qualified parties on verbal instructions of the top brass of the Ministry. The Economic Co-ordination Committee (ECC) of the Cabinet, in its meeting on July 20, 2011 had emphasised that besides provision of essential items at subsidised rates, their availability to common man should also be ensured. The committee had observed that during Ramazan people faced a lot of problems in getting essential items because of shortage of these items at USC outlets.
The ECC also approved following additional measures to facilitate people during Ramazan: (i) USC to ensure availability of all essential items on all its outlets; (ii) additional counters at USC outlets will be operated to avoid long queues; (iii) senior officials of USC will carry out surprise visits to ensure proper functioning of its outlets; and (d) provincial governments, including government of AJ&K and Gilgit-Baltistan, would also be asked to extend due assistance to USC staff at the outlets.