Sugar operation: USC seeks relaxation in PPRA rules

The Utility Stores Corporation (USC) Thursday sought relaxation in Public Procurement Regulatory Authority (PPRA) rules for sugar operation as due to non-availability of the commodity, the overall sale has substantially declined and hence less profit.The annual accounts of the corporation, for financial year 2013-14, have been audited by the statutory auditors of the corporation in which a loss of Rs 202.322 million has been reported, it was revealed in the Senate Standing Committee onIndustries and Production which met with Hidayatullah in the chair here Thursday.MD USC Sultan Mehmood while briefing the committee said sugar was previously being procured by the Trading Corporation of Pakistan (TCP). In compliance with the decision of the Economic Co-ordination Committee (ECC) of the Cabinet, sugar is now being procured by the Corporation through open tender.However the response is discouraging as despite repeated letters to 48 sugar mills, they are not participating in tenders for sugar supply. The MD requested for reducing the response time to 5 daysagainst the current 15 days.He further said that besides a few tender most of tenders were scraped, as a result of which, due to higher rates received in tender, sugar could not be procured.Due to the non-availability of sugar at USC outlets,the overall sale of the Corporation substantially declined, since the customer use to procure a number of other items along with the purchase of sugar.The committee also expressed annoyance over decline in USC sale from Rs 80 million in 2013-14 to Rs 25 million in the first half of the current fiscal year.The committee also directed for taking measures to bring the USC out of its financial crisis. It furtherrecommended not privatising USC which is facilitating general public. The committee also directed to fill all the vacant posts and take steps for improving USC situations.The committee was further informed that the annual accounts of USC for the financial year 2012-2013 were approved by the Board of Directors. The corporation earned Rs 1399.842 millions.The annual accounts of the corporation for financial year 2013-14 have also been audited by the statutory Auditors of the Corporation in which the loss of Rs 202.322 million has been reported.The MD USC said that for further expansion of the network of USC a PC-I for opening of 1,000 more stores throughout the country was prepared.After the approval of the Secretary Industries the same was forwarded to Planning and Development Division for approval of the relevant competent forum. The PC1 submitted by the Corporation is still pending with the Planning, Development & Reform Division.Senator Taj Haider said that Sindh provincial government is introducing phase-wise utility stores system. Briefing the committee over recruitment, the MD said that last recruitment in the Corporation was made in November/December 2012.During this period due to resignation, termination and dismissal on account of disciplinary actions a number of post fell vacant particularly in sales staff.The matter for lifting of the ban on recruitment andrecruitment against the vacant posts was placed before the Board of Directors, USC in their 121st meeting held on 14th November 2014.The Board approved the lifting of the ban on recruitment against the vacant posts. Matter was taken up with the government/Establishment division for issuance of required NOC. Necessary NOC was issued by the Establishment Division andposts were advertised.Necessary screening tests in respect of the posts/grade BPS-7 and above have been conducted by NTS and matter is under process.In view of irregularities observed by the audit authorities and their directions for corrective actions, officers appointed against Chief Operating Officer and General Manager (IT) have been terminated on February 4, 2016, the committee was informed.News SourceNews Collated byPAKISSAN.comCourtesy Business Recorder