PTA causes huge financial losses to exchequer: audit report presented in National Assembly

The Pakistan Telecommunication Authority (PTA), defying the directives of Finance Division, caused huge financial damage to the national exchequer, the Auditor General of Pakistan (AGP) pointed out in the audit report.
According to the audit report for 2003-04, presented in the National Assembly, receipts of licence fee from two cellular companies were kept in short-term deposits and remitted to the Federal Consolidated Fund after a delay of three months. In contravention to the directive of Finance Division, the delay had a serious 'Ways and Means' implication in view of the heavy amount (Rs 17.621 billion), it said.
The Auditor General also criticised the PTA for violation of Pakistan Telecommunication (Reorganisation) Act, 1996, as it provides that "any surplus of receipts over the actual expenditure in a year shall be remitted to the Federal Consolidated Fund and any deficit from actual expenditure shall be made up by the government". The Finance Division vide letter dated May 25 2004, had directed PTA to remit the fee of two mobile licences.
The Authority had determined an amount of Rs 17.725 billion, over the actual expenditure for financial year 2004, as surplus amount but remitted only Rs 104. 371 million to the FC fund. The remaining amount, of Rs 17.62 billion, was kept in short-term deposits with National Bank for about three months.
The report said that Rs 227 million receivable from National Telecommunication Corporation in respect of share of international incoming traffic for the financial years 2001-02 to 2003-04 was not recovered. Besides, the Authority did not surrender the unutilised funds of Rs 78 million against three projects during 2003-04 at the end of the financial year. It rather retained the amount in National Income Daily Accounts maintained with National Bank of Pakistan.
The PTA also failed to recover Rs 45 million outstanding of leased circuits, liquidated damages and 5 percent normal rent. Ten vehicles, of Rs 9 million, were purchased during the ban period, without obtaining relaxation from the government. Moreover, the NTC Management Board approved, beyond its delegated powers, promotion of an officer in BPS-20, the report said.
The AG report pointed out that accumulated loss of National Radio Telecommunication Corporation increased from Rs 8 million in 2002-03 to Rs 39 million in 2003-04. The NRTC inflicted Rs 14 million loss to the national exchequer by purchasing materials for manufacturing die parts without open tenders.
NRTC did not supply goods to Defence Production Division and Pakistan Telecommunication Company Limited within the agreed stipulated delivery period. As a result, liquidated damages of Rs 9 million were deducted by the clients, the report said.