The Ministry of Commerce and State Bank of Pakistan (SBP) have issued no-objection certificate (NOC) to Tradesman International, a Karachi-based company, for withdrawal of four ships from Port Qasim, carrying 0.15 million tons rejected Australian wheat.
Tradesman International had imported wheat for Pakistan Agriculture Storage and Services Corporation (Passco) after winning the tender in January this year, but snags hit the entire transaction when the wheat in the very first vessel, 37,500 tons, was found insect-ridden at the port on laboratory test.
The other three vessels--each with same quantity--met the same fate on technical grounds.
After getting NOC, the company will be free to take away the rejected commodity.
Under Pakistan laws, NOC was required from the Ministry of Commerce and State Bank of Pakistan as no ship can leave the port of any country without fulfilling the requirement.
After meeting the condition, the vessels loaded with Australian wheat are likely to leave Qasim port in a couple of days.
With the confirmation of rejection of the commodity, Passco has moved to confiscate Tradesman International's performance money valued at $ 1 million.
Passco chief, Major General Fahim Akhtar, told Business Recorder that the exercise for confiscation of Tradesman International's performance money was underway.
He said: "Under the law, the government has right to confiscate performance money of Tradesman International since it failed to deliver the commodity as per conditions of the tender and this right would be exercised."
He added that no government department, including Passco, had any link with Australian Wheat Board since tender was awarded to Tradesman International.

Copyright Business Recorder, 2004

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