Poof goes the wheat

416,000 bags of wheat procured by the food department have gone missing in Ghotki


416,000 bags of wheat procured by the food department have gone missing in Ghotki. DESIGN: ESSA MALIK

SUKKUR:


When it comes to Sindh, corruption knows no limits. While the provincial government is seen by many as an epitome of venality, the food department seems to be vying for the top slot. The wheat procurement target in Ghotki district for this year was 1.5 million bags, out of which as many as 416,000 bags have gone missing.


The relevant officials, instead of taking drastic action against those responsible, have only suspended them from duty with orders to report to the head office in Karachi. Sources in the food department believe that these suspended officials will be posted somewhere else now.

Like every year, it was decided that 1.5 million bags will be procured from the farmers by the Sindh government for Ghotki. When the process was completed and the count took place, it was discovered that 416,000 bags were missing. Due to pressure exerted by senior officials, food officials responsible for the task completed the count of the missing 416,000 wheat bags by filling the empty bags with hay and earth. However, two district food controllers of Ghotki, Anees and Asghar Shah, were suspended and ordered to report to the head office in Karachi. “After some time, they will be posted somewhere else,” a source added.

Read: Wheat surplus: Ministry seeks 50% regulatory duty on imports

An official of the Ghotki food department requesting anonymity confirmed that wheat bags are kept in flourmills due to shortage of storage. He said that the flourmill owners have to pay for the wheat bags in case they grind and sell them. Speaking about the missing 416,000 wheat bags, he said that the bags were kept in the flourmills and payment has been made to the department.

Due to shortage of warehouses, the food department often used to store wheat bags in the warehouses of flourmills, declaring them Provincial Reserve Centres. This is where corruption starts. The flourmill owners, who are legally and ethically bound to keep the wheat stock intact and return it back to the food department on demand, instead grind the wheat and mint millions of rupees without investing a single penny. Moreover, the same wheat stock is used as a guarantee against which bank loans are obtained.

According to food department officials requesting anonymity, the ‘missing’ wheat bags were actually kept in the flourmills of Ashok Kumar, who is the owner of several flourmills, rice mills, cotton factories and a fuel station, and is said to be a close friend of an influential politician of the district. Officials added that Kumar enjoys friendly relations with some officers in the National Bank of Pakistan (NBP), including the Ghotki branch manager, Farooq Ahmed, and the bank’s regional head in Sukkur, Gobind Ram.

Kumar, with the alleged abetting of the bank officers and some officials of food department, used to get heavy loans by pledging the wheat stock, which actually belongs to the food department. According to officials, the bank officers get one per cent commission on the loan advanced to Kumar and are his partners in flourmills of Sindh and Ghotki cotton factory.

Refuting allegations

When contacted for his version, the food deputy director in Sukkur, Sarwar Ahmed Shah, plainly refused to give his comments. “I am not allowed to share any information with the media,” he said. When asked who can inform the media about the massive corruption in the department, he suggested that the director in Karachi be contacted. Meanwhile, the food director in Karachi, Ahmed Ali Qureshi, remained busy in meetings or official visits whenever contacted throughout the entire last week.

Read: 50% decrease in transport cost of wheat

“We advance loans to entrepreneurs after fulfilling all documentation,” said NBP Ghotki branch manager Farooq Ahmed while talking to The Express Tribune. “Therefore, the question of favouring anyone doesn’t arise.” When asked if he gets one per cent commission on loans advanced to Kumar, he replied in the negative. He further denied that he is Kumar’s business partner.

Similarly, the NBP regional manager in Sukkur, Gobind Ram, refuted allegations that he received the said commission. “Ashok Kumar is a regular borrower,” he said. “He produces documents from the food department and on the basis of those documents, [we grant him loans].” He also denied being business partners with Kumar. Meanwhile, Kumar could not be contacted despite repeated attempts.

Published in The Express Tribune, August 12th, 2015. 

COMMENTS (4)

Gullu | 8 years ago | Reply Did the food department pay rent for the storage space they used? To prevent this sort of thing from happening again the government should stop buying and selling wheat or any other commodity and interfering in the market. It is not the job of the government to set prices in a free market economy. All of this corruption does not help farmers.
rashid | 8 years ago | Reply This scam was not limited to Ghotki district only. It was Macro managed by the top man of PPP. Every district was given 2/3rd of the allotted wheat bags, rest discreetly sold in open market. Govt of Sindh borrowed money to give subsidy on wheat but instead filled their own pockets.
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