The Auditor General of Pakistan (AGP) has given a brief to the Senate Standing Committee on Finance on audit paras pertaining to financial irregularities to the tune of Rs 387 billion and the cases pertaining to fraud and embezzlement, theft and misuse of resources of Rs 1.694 billion on the accounts of Public Sector Enterprises (PSEs). The committee has decided to hold a separate meeting soon on PSEs' audit paras for seeking explanation by inviting the relevant officials to the meeting.
According to the brief premise on audit report for the financial year of 2016-17, the audit paras of Pakistan International Airlines Corporation included; (i) recurring of loss to Pakistan International Airline Corporation (PIAC) on account of salary to 3,765 staff hired through M/s Fulcrum were Rs 1,246 billion; (ii) unsound Service Rules of PIAC prepared without approval of the federal government, Rs 3 billion; (iii) illegal appointments of 169 employees during a ban period by the PIA in contravention of orders of government, Rs 236.60 million; (iv) irregular procurement of turbo oil in violation of PPRA Rules, Rs 50.386 million; (v) irregular & unjustified co-sourcing of Internal Audit Department, Rs 24 million; (vi) and irregular award of international outsource catering contracts amounting to Rs 2,570.897 million.
Audit paras of Pakistan Industrial Development Corporation (PIDC) included irregular investment by violating the directives of Finance Division amounting to Rs 6.130 billion, etc.
House Building Finance Corporation (HBFC) audit paras included; (i) irregular enhancement in pay scales and allowances of the employees of HBFCL without obtaining the concurrence of Finance Division, Rs 55.661 million; (ii) non-appointment of Professional Investment/Fund Manager in HBFCL, Rs 7.685 billion. Pakistan State Oil (PSO) audit paras included; (i) irregular and unauthorized payment of bonus, Rs 844.956 million; (ii) and irregular procurement of LNG in violation of PPRs-2004, Rs 7.713 billion.
State Life Insurance Corporation (SLIC) audit paras included; (i) irregular and compromised settlement of funds of Rs 100 million in COIs of FDIBL; (ii) and non-reporting of contracts to NAB, Rs 252.18 million. Audit paras of SSGCL included: (i) irregular procurement of pipe layer machine in a forged manner amounting to US $ 1,040,000 in violation of PPRA rules; (ii) a loss of Rs 62.495 billion due to supply of gas to K-Electric in violation of company policy and payment agreement; (iii) a loss of Rs 5,331 billion due to non-receipt of shrinkage charges from Jamshoro Joint Venture Limited in violation of direction of the Supreme Court; (iv) and irregular sale of NGLs amounting to Rs 1.582 billion without agreement in violation of BoD decision and the court.
Employees Old-age Benefits Institution (EOBI) audit paras included irregular award of contract for construction of OEC Tower, Rs 1.539 billion; (ii) irregular opening of bank accounts and release of fund to M/s TMFBL for disbursement of pension.
Pakistan Petroleum Limited (PPL) audit para was of irregular purchase of ink for bank notes from M/s SICPA Ink Pakistan Ltd in violation of PPRA, Rs 1.803 billion.
Pakistan Engineering Company (PECO) audit para was of non-provision of mark-up payable to the government, Rs 15.250 billion. SNGPL audit paras included: (i) undue revenue earned based on incorrect UFG calculation, Rs 202.405 billion; (ii) excessive purchase of pipe due to preparation of incorrect estimates Rs 18.382 billion; (iii) chances of mis-appropriation due to non-physical verification of assets for the last eight years, Rs 10.701 billion; (iv) irregular capitalization of RLNG pipelines, Rs 1.701 billion; (v) irregular capitalization of 607 jobs during 2014-15, Rs 1.005 billion; (vi) a loss on account of excess consumption of High Speed Diesel (HSD) and coating material, Rs 6.897 billion; (vii) irregular emoluments of the board of directors due to non-disclosure in accounts of the company, Rs 7.822 billion. The AGP brief also contained audit paras of various other public sector enterprises of ministries and divisions.
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