Improper planning of PIAC management causes Rs 23.8 million loss: PAC body informed

Pakistan International Airlines Corporation (PIAC) had entered an agreement in 1984 with M/s Carl Zeiss of West Germany to buy Planetarium equipment. The idea was to set up Planetarium for public education at Karachi, Lahore, Peshawar and Quetta. The equipment was purchased in instalments without proper planning and only two Planetariums could be established at Karachi and Lahore.
"Other two Planetariums are non functional for last eight years and now rusting at Peshawar and Quetta", Managing Director PIAC, Captain Ijaz Haroon informed the special committee of Public Accounts Committee (PAC) on Wednesday. Improper planning of PIAC management not only inflicted loss of Rs 14.4 million to country in purchasing the Planetariums but the airline also faced accumulative maintenance losses of Rs 9.4 million from January 2008 to July 2010.
When PAC suggested the management to engage local administration in running these Planetariums, MD PIAC disclosed that a marriage hall was built on the site specifically allotted for setting up Planetarium. In another case, MD, PIAC expressed his helplessness to trace Faisalabad based Company Shaver (Pvt) Limited which was given unauthorised credit for sales of chicks worth Rs 2.248 million between April to June 1991. He said police was not able to trace the accused even after launching FIR. The PIAC's officers involved in the embezzlement also got retired.
Auditor General of Pakistan hit hard the Ministry of Defence in failing to comply with the directives of PAC in the matter of gross irregularities and mismanagement of funds in the ministry. Although, Cabinet Division had put ban on purchase of new vehicles in June 1998, Civil Aviation Authority (CAA) violating the laws spent Rs 3.395 million on purchase of five vehicles for their officers in 2001-02.
Department Audit Committee (DAC) directed the CAA management on August 2007 to again send the summary to cabinet division via ministry of defence. Deputy Auditor General claimed that secretary defence refused to pass on the summary to cabinet division for rectification, as he observed unauthorised purchase of vehicles.
In a similar case, Ministry of Defence could not produce relevant documents pertaining specific approval of the former Prime Minister in 2001-02 for creation of 'security charges fund' to buy vehicles. By passing the ministry of finance, CAA purchased one Toyota Corrolla GL 4 door, five Cultus VXR 1000 CC and two Toyota Hilux Pickups.
Additional Secretary Ministry of Defence claimed the security charges were utilised for procurement of vehicles from Airport Security Fund (ASF) after the approval of competent authority. Audit asked them to trace the record and submit to the committee. The committee was also informed that the net saving of Ministry of Defence is Rs 113 million against the allocation of Rs 132 billion embarked in (2001-02) budget. The PAC also reviewed various accounts of the ministry of foreign affairs and ministry of water and power. The special committee of PAC was chaired by Zahid Hamid.