Mystery shrouds the award of contract by Passco for the import of 150,000 tonnes wheat. The contract has been awarded to a local firm Tradesman at his offered price of 224.75 dollar per tonne in sharp contrast to the lowest bidder Australian Wheat Board (AWB), in the tender, which was opened on January 6. AWB had offered 214.50 dollar per tonne.
According to wheat traders, it took 10 days for Passco to convince the AWB to make available their quantity originally priced at 214.50 dollar per tonne to the local trader who had offered at 224.75 dollar ie at 10.25 dollar higher, with the argument that Passco would not accept international terms and conditions but would insist on sellers agreeing to their terms and conditions as accepted by Tradesman.
The AWB agreed and finally on Friday, January 16 Passco made the award for the entire 150,000 metric tonnes to Tradesman at 224.75 dollar and the AWB in turn sold to Tradesman. Thus the country has had to pay 10.25 dollar per metric ton more on 150,000 metric tons i.e. 1.54 million dollar (Rs 88.4 million).
Wheat traders said that Passco justified this by pointing out that Tradesman were the only party who agreed to Passco terms and conditions.
Can Passco justify paying 1.54 million dollar (Rs 88.4 million) by insisting on their own terms and conditions.
Passco's deviating from normal international terms and conditions and in connivance with local companies who can accept this concocted terms and conditions at a cost to the exchequer of 1.54 million dollar. How is this money to be shared,? they asked.
What is now worrying international wheat suppliers is that future tenders will also go the same way.
They would find it impossible to accept Passsco's terms and conditions and they will be forced to go through local companies who would be willing to work with Passco and accept Passco's terms and conditions at an exorbitant cost to the exchequer.
Moreover, Passco would once again float tenders with such delivery schedule that only the Australian wheat board would be able to supply. Especially now that an equation is already in place between Passco, Australian Wheat Board and Tradesman.
The wheat traders asked: is NAB going to look into this shady deal as on the total of 500,000 tonnes that Passco has to import, will they continue to pay 10.25 dollar per tonne extra ie five million dollar (Rs 285 million)?
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