PAC dissatisfied over acceptance of defective stores by DGDP

Public Accounts Committee (PAC) has expressed its dissatisfaction over acceptance of defective stores by the Director General Defence Production (DGDP) worth Rs 11,105,017 causing loss to the national exchequer. The PAC met under the Chairmanship of Malik Allah Yar Khan in the Parliament House on Wednesday to discuss the audit paras of the Ministry of Defence Production and its subordinate departments for the year 2000-2001.
Audit department informed the PAC a contract worth Rs 11,105,017 was awarded in the year 1996 to M/s AECO for supply of spares for the Fiat vehicle under the use of Pakistan Army.
Later, inspection clause from the contract was deleted. The contractor shipped an incomplete consignment of spares out of which most of them were found defective.
The PAC directed the Secretary Defence Production to conduct an inquiry to ascertain as to why and who deleted the inspection clause from the original contract and incomplete consignment was received, and report the findings of the inquiry to PAC within one month.
While discussing another audit objection pertaining to the irregular payment of Rs 22 million to M/s Trans Mobile Limited, a subsidiary of M/o Industries without getting proper bank guarantee, PAC wondered how a substantial amount was advanced to a firm on a simple letter of guarantee.
Director General (Audit) briefed the committee DGMP made a payment of Rs 22 million to the said firm just on a simple letter of guarantee from Secretary M/o Industries and Investment. It was also brought into the notice of PAC Rs 285 million were already outstanding against the M/s Trans Mobile Limited.
Malik Allah Yar Khan, therefore, ordered M/o Finance to conduct an inquiry to ascertain whether one government department could give advances to other department without obtaining proper bank guarantee and without the concurrence of Ministry of Finance, and suggest action against the persons responsible for dereliction from their duty within one month.
PAC settled various other audit paras on accepting the replies of the concerned officials and as recommended by the DACs, subject to the confirmation by the Audit Department.
However, PAC directed the Ministry of DP to develop and circulate a standard operational procedure to all the departments under its administrative control, containing guidelines for all project officers on preparing development contracts, terms of payment and other relevant details of contracts thereby eliminating chances of going wrong.
The meeting was attended by MNAs Syed Qurban Ali Shah, Professor Asiya Azeem, Ch Nisar Ali Khan, Colonel (R) Ghulam Rasool Sahi, M Safdar Shakir, Hafiz Hussain Ahmad, Ch Qamar-uz-Zaman, Auditor General of Pakistan, Secretary M/o DP and other officers of the concerned departments.