MNFS approaches ECC for $2 million recovery from finance ministry

Ministry of National Food Security and Research (MNFS&R) has approached the Economic Co-ordination Committee (ECC) of the Cabinet for recovery of approximately $2 million from the Finance Ministry against wheat supplied to Afghanistan during 2008-09, well informed sources told Business Recorder.
Giving the background, the sources said, on a summary initiated by the Ministry of NFS&R regarding the pending payment to PASSCO by the Government of Afghanistan on account of wheat supplied in 2008 (including the transportation charges), the ECC in its meeting held on August 12, 2015 approved payment of $1,750,499.383 as pending payment of PASSCO as well as an amount of Rs 8,773,798 for payment to transporters M/s Abdullah Khan and Imranullah Khan on account of wheat supply to Afghanistan.
Consequent upon approval of the summary by the ECC, Finance Division issued sanction letter on October 22 2015 for payment to M/S Abdullah Khan and Imranullah Khan, amount of Rs 8,773,798 through PASSCO and payment was made accordingly. However, regarding the amount of $1,750,499.383 as pending payment of PASSCO, the Finance Division revealed that "the entire case has been examined in detail and it is found that the summary for ECC of July 7, 2015 as ambiguous and did not contain any proposal on the source of payment of outstanding amount, of $1,750,499.383 stated to be pending against the Government of Afghanistan".
According to MNFS&R, the lack of clarity in the summary was also pointed out by the Deputy Financial Adviser (DFA) (Finance), when the case of releasing transporters' charges was referred to F.A Organisation. Secretary MNFS&R argued that Finance Division is not in the position to make any payments to PASSCO against its outstanding claims against the liability of Afghan Government.
Later on it was clarified by the Finance Division on November 14, 2016 that the source of pending payment to PASSCO would be Finance Division's demand No. 36 miscellaneous expenditure ID 0946 "reimbursement of subsidy to PASSCO on account of wheat operations".
In spite of ECC's decision and its partial implementation, the outstanding dues of PASSCO remain pending leading to piling up daily mark up of $3,803 on principal amount. In response to MNFS&R's request for payment, Finance Division on December 6, 2016 advised for clear direction from ECC. PASSCO has conveyed the latest position of its claims against Afghanistan on account of wheat supplied by PASSCO including mark-up as follows ;(i) total quantity of wheat dispatched duly reconciled by Afghan Trade Development Cell was 48,094.561 MT; (ii) total cost @ $287.00 MT as per contract was $13,803,139.007; (iii) total amount received from Government of Afghanistan $13,183,890.000; (iv) pending amount from Afghanistan $19,249.000 and ;(v) mark up till December 23,20 16 $1,368,664.000. This shows that the total amount outstanding (including mark-up) $1,987,913.000 up to December 23, 2016.
MNFS&R has proposed that ECC may approve an amount of $1,987,913 being outstanding claim of PASSCO on account of wheat supply to Afghanistan 2008-2009 and Finance Division be instructed for release of the approved amount form Demand No. 36 miscellaneous expenditure ID 0946 "reimbursement of subsidy to PASSCO on account of wheat operations" to avoid further accumulation of the banks mark-up. Moreover, Ministry of Foreign Affairs should be advised to continue its working for recovery from Afghanistan Government.