A recent report issued by the National Audit Office has revealed that despite a total contract payment of Rs. 1,749,672,697 (one billion, seven hundred and forty-nine million, six hundred and seventy-two thousand, six hundred and ninety-seven rupees) to a supplier for the importation of 15,000 dairy cows, the government had not received any benefit from the project as of February 2025.
According to the audit report, this substantial advance payment was made without a proper feasibility study and before completing the required preliminary procedures. Moreover, no adequate measures have been taken to recover the funds.
The report notes that 20 percent of the total contract value was paid in advance to the supplier, Wellard Rural Exports of Australia. It also highlights that the Ministry of Rural Economy had failed to ensure an acceptable performance security for this advance payment.
The audit further observed that the government could have potentially mitigated this financial loss had a valid performance security been maintained. This situation is particularly concerning, given that previous audits had already identified various issues and losses related to the dairy cow importation program. Recommendations had been provided earlier to address these problems, but they were not implemented before releasing the advance funds.
Additionally, the report notes that the supplier in question—selected nearly a decade ago—was awarded this contract without undergoing a re-procurement process.
Although plans were initially made to import 2,500 dairy cows in 2018, the advance was instead issued that same year for the importation of 15,000 cows.
The audit recommends initiating legal or disciplinary action against those responsible for authorizing this unnecessary advance payment of over Rs. 1.74 billion without securing any returns for the government.
