Contractors involved in misappropriation: ministry asked to stop making purchases

The Public Accounts Committee (PAC) of National Assembly on Tuesday directed Ministry of Defence Production to stop buying from contractors involved in deception and misappropriation. The PAC meeting chaired by its chairman Chaudhry Nisar Ali Khan reviewed the audit reports of the ministry for the year 2005-06.
Audit reports revealed that a loss of Rs 24.960 million was incurred to the government due to two contracts of skimmed milk powder in Pakistan Mission at Paris. It showed that one company failed to provide 500 ton milk powder within stipulated period of time, while 138 tons milk powder out of total 189 provided by the other company was unfit for human consumption.
Nisar directed the ministry to improve the system for awarding the contracts and blacklist the companies failing to deliver. The ministry was also asked to give due importance to the observations of audit authorities.
Earlier, the audit authorities besides other reports informed the PAC panel about unauthorised investment of Rs 90 million government money in profit and loss term deposit scheme by Pakistan Aeronautical Complex, Kamra. Chairman Pakistan Aeronautical Complex, Kamra said that the fund was utilised as it was not meant to be used immediately.
Nisar said that rules and regulations must be followed in any case. He directed the concerned authorities to regularise the matter through Ministry of Defence Production within one month. He also directed Secretary Ministry of Defence Production to ask all the departments under him to inform him about all the legal cases related to contracts with different firms. He also asked him to revisit the contracting system so that in future no contractor can deceive the ministry.