This refers to a news item "TCP saves Rs 7.8bn in commodity financing" carried byBusiness Recorder on 23.02.2017. Saving of financial cost has always been top priority of all business enterprises whether they runs by the government or private sector and one of the basic tools under good financial management.
From the above news it appears that before the year 2013, due diligence was not made by TCP management in respect of mark-up and availed commodity finance on higher mark-up rates, ultimately, the country who was already under extreme financial crunch, had to bear
extraordinary financial burden due to gross negligence of TCP management which may be realised by the statement given by TCP management in the following manner; "In 2013, TCP was obtaining financing for commodity operation at three-month KIBOR plus 2.70 percent, while presently it is borrowing at three-month KIBOR minus 0.06 percent".
No doubt, the present TCP chairman is highly admirable for his excellent efforts on significant reduction in financial cost by successful negotiations with financial institutions; however, there is a question mark on the performance of TCP Finance Department whether the commodity finance was obtained in past on high mark-up due to incompetency of TCP Finance Department or otherwise.
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