A key reform initiative under the Tax Administration Reform Project (TARP) ie ''Post-Clearance Audit'' (PCA) is in serious trouble, as the former project director of PCA has refused to accept the new set-up at Model Customs Collectorate (MCC), Karachi for carrying out audit of importers and exporters.
Sources said on Wednesday that the Federal Board of Revenue (FBR) has appointed Muhammad Javed Ghani, an additional collector of customs, as new project director, PCA, Karachi. The former project director, who also headed the developmental team of the PCA, has rejected his appointment on the plea that the new appointment would result in closure of the project.
According to sources, there are apprehensions that the fight of customs officials for obtaining maximum powers for audit would result in closure of the main reform project before starting at Karachi or Lahore. This project has been delayed for the last many years and now uncertain situation has been created by some customs officials to create hindrance in smooth implementation of the PCA.
The former project director, PCA, who wanted to remain posted as head of the project, argued that MCC, PCA, Karachi does not exist anywhere in Pakistan. This project is related to Lahore where the pilot project should be started. He also referred to the standing operating procedure and other audit manuals being issued for launching of the PCA at Lahore.
Recently held collector''s conference also decided that PCA pilot project would continue in its approved and existing structure. However, for unknown reasons, the board issued an order for appointment of a new project director, he added. The former project director, PCA, warned the FBR that, "board should immediately take steps to rectify the situation to bring the project in a position from where it may begin to move.
Under the current circumstances, this pilot project is not even likely to move, let alone to deliver in any meaningful manner, he added. Sources said that the argument of former project director clearly pointed towards typical mindset of customs officials, where individuals matter and not the organisation.
Sources said that the major portion of imports and exports are taking place at Karachi. Therefore, it is nothing unusual to set up the pilot project at Karachi instead of Lahore. The project would work more smoothly at Karachi under the new director.
Secondly, the FBR has experienced that if the development team of any project is also allowed to work as head of the operational matters, it is a disaster for the whole project.
The developmental team is well versed with the loopholes in the system and can play with the project during its implementation phase. The appointment of a new project director would not create any distortion in the system, but help in speedy implementation of the project at Karachi. Sources said that the PCA is a clear example of system failure where individuals wanted to overrule the reform projects.
It is important to mention that the top customs authorities have never favoured an independent PCA organisation for carrying out audit of import consignments and insisted to make the PCA a part of the relevant customs Collectorate. The issue has been raised at different forums whether PCA would be under Member Audit or Member Customs or PCA will be a separate and distinct organisation.
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