ACE unveils report on Rs261m subsidy scam

Flour mills availed subsidy under Ramazan Package in 2018

LAHORE:

Following a subsidy scandal of sugar mills, the Punjab Anti-Corruption Establishment (ACE) has made public a report on a wheat subsidy scam of over Rs261 million under the Ramazan Package 2018.

The ACE inquiry report highlighted that 667 flour mills availed subsidised wheat quota from the Punjab Food Department under the Ramazan Package 2018, of which 148 mills were found guilty of selling subsidised wheat in the market at a higher rate.

The report also indicated that the flour mills sold subsidised wheat in the open market in connivance with food department officials instead of providing relief to the general public under the Ramazan Package.

The ACE has estimated that a total loss of Rs261.37 million was caused to the provincial exchequer. The anti-corruption watchdog has already recovered Rs206.48 million and efforts are being made to recover the remaining amount.

The ACE has registered FIRs against delinquent flour mills and food department officers in Rawalpindi, Sargodha and Gujranwala regions.

It pointed out that at that time it was a normal practice of the food department to issue wheat at the rate of Rs1,200 per 40 kilogrammes to the functional flour mills. But under Ramazan Package 2018, the department issued wheat at a subsidised rate of Rs800 per 40kg to provide relief in wheat flour price through Ramazan Bazaars and markets.

Published in The Express Tribune, July 23^rd, 2020.