The Public Accounts Committee (PAC) on Thursday summoned the Privatisation Ministry in its next meeting to sought out the issue of privatisation of Pakistan Switchgear Limited (PSL), a subsidiary of State Engineering Corporation (SEC). The PAC, which met under the chairmanship of MNA Malik Allah Yar Khan, continued examination of the Audit Report on Public Sector Enterprises for 2000-01.
The PAC was informed that the State Engineering Corporation sustained a loss of Rs 27.701 million due to non-substitution of SEC counter guarantee provided to the NDFC in respect of loan obtained by the PSL.
The PSL was sold by the Privatisation Commission in 1992 to the employees of the PSL without securing/substituting the counter guarantee of the SEC with guarantee of the buyers.
Resultantly, the new buyers failed to oblige the contractual obligations and defaulted whereby the NDFC obtained a decree from the banking court against the PSL and SEC.
The SEC chairman informed the committee that at every stage the issue of vacating/substituting SEC guarantee was brought into the notice of the Privatisation Commission, but all the SEC concerns were disregarded.
According to the latest position, plant and machinery had been sold by the Muslim Commercial Bank (MCB) in a separate decree against the company.
The PAC while discussing the audit objection pertaining to the National Fertiliser Marketing Limited (NFML) lamented the lethargic attitude of the NFML officials for not protecting the interests of the government.
It was brought into the notice of the PAC that Rs 1.570 million were outstanding against Mianwali Goods Forwarding Agency since 1999. Later, the NFML went into arbitration and the arbitrator's award was announced in favour of the NFML.
Moreover, the NFML after a considerable delay filed a suit in the Civil Court, Lahore to make the award a rule of law and decree, which was still pending. The NFML also failed to register FIR against the cartage contractor for misappropriation the fertiliser consignment.
The PAC directed the Industries Ministry secretary to hold an inquiry and identify the people responsible for the delay. The NFML chairman was also directed to device strict mechanism to keep a check to avoid misappropriation of fertiliser consignments in future.
Earlier, while discussing the working results of State Engineering Corporation, the PAC expressed its concern on accumulated losses of Rs 5,187.294 million as on June 30, 2001 in respect of the five units controlled by the corporation.
The PAC reiterated its earlier stand and asked the Industries Ministry secretary to either carry out a vigorous restructuring of the SEC or otherwise privatise them to avoid further loss to the national exchequer.
MNAs Colonel Ghulam Rasool Sahi (Retd), Syed Qurban Ali Shah, Liaquat Baloch, Professor Asiya Azeem, Chaudhry Qamar-uz-Zaman Kaira, Chaudhry Nisar Ali Khan, Safdar Shakir, Riaz Fatayna, Hafiz Hussain Ahmad, Kunwar Khalid Younus, Auditor General of Pakistan, Industries and Production Ministry secretary and other officers of the concerned departments attended the meeting.
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