ISLAMABAD: A parliamentary panel, on Wednesday, directed the Utility Stores Corporation (USC) to withdraw the condition of NIC on purchase of food items from the Utility Stores across the country.
The Public Accounts Committee (PAC) examined the audit paras of the Ministry of Industries and Production for year 2019-20. Rana Tanveer chaired the meeting of the committee. Only one audit para pertaining to the USC was taken by the committee.
The chairman committee expressed displeasure over sale of substandard items at the Utility Stories and condition of the NIC for poor on purchase of food items.
The committee was informed that no arrangement is made for registration of NIC holder at the stores. No data has been maintained of those who shopped there.
Expressing his surprise, the chairman said that there is no need to continue with the condition of NIC, when no data of NIC was available at the stores.
He said that they should discontinue the application of the condition and rather introduce a fresh Ration System for the poor.
He suggested that a “Ration System” should be replaced with NIC condition, which can be used by deserving families during one month.
He said even wealthy could buy subsidised items at the stores without any restrictions, which was against the spirit of the USC rules.
An official of the USC informed the committee that the whole chain of the USC would likely to be computerised by June 2021, which helped them to maintain data and further improve the performance of the corporation.
Earlier, the committee took an audit para pertaining to loss of Rs 40.4 million to the government exchequer due to corruption through embezzlement/ misappropriation by the USC employees. During the audit, the audit officials observed that embezzlement/shortage/misappropriation of stock valuing Rs 21.226 million was detected in various regions but no recovery of the cost of embezzlement/misappropriation was made from respective store in-charge, despite lapse of considerable period.
The amount of Rs 19.237 million was illegally transferred to the personal account of Ziaullah Khan Warsi by Masood Alam Niazi, the then Zonal Manager, Karachi on account of labour charges through the payment against these labour charges was not required to be paid by the USC as the same was already paid by the TCP to the handling agent as per agreement between the TCP and the agent.
The committee asked to conclude the inquiry, on going investigation by the NAB, the FIA and resolve the matter as soon as possible.
The chairman committee also expressed strong reservation over a letter written by the secretary industries to seek exemption to attend the meeting due to the Covid-19.
The chairman said that he was attending high-level meetings such as the Cabinet, the Economic Coordination Committee but reluctant to come to the PAC.
The forum was following strictly all the SOPs to protect against the Covid-19.
During the audit of NFC Head Office for the year 2018-19, it was observed that the management disbursed an amount of Rs 120 million in two tranches of Rs 60 million each in June and August 2018 as a loan to Pakistan Machine Tool Factory (PMTF).
Both the tranches were released on the instruction of the concerned ministry without obtaining any resolution or approval of the board of directors (BoDs) and without any due diligence.
However, the PMTF on September 25, 2020, informed the NFC that the management of the PMFT has been taken over by the Strategic Plans Division and on assurance of waiver of markup, the PMTF management is ready to payback the loaned amount of Rs 120 million in one go.
The proposal of the PMTF for waiving of mark-up was discussed in the board of directors meeting of the NFC, wherein, the board noted that the board of directors of the NFC is a nominated board, which is not competent to waive off mark-up on the loan.
The board further directed the management to take up the case with the Finance Division through the concerned ministry informing them about the letter received from the PMTF regarding waiving off mark up on the NFC loan of Rs 120 million.
In another case, Pak China Fertilisers Limited, a subsidiary company of the NFC was privatised on May 26, 1992, and all assets and liabilities along with its management were transferred to the new buyer (M/s Schon Group).
As per the privatisation policy of the government, 90 percent shares were sold to the new buyer and the NFC holds 10 percent shares i.e 1880,000 ordinary shares valuing Rs 18.800 million to be offered to the employees of the Pak China Fertilizers Limited.
However, the buyer defaulted towards its responsibilities regarding payments of balance purchase price to the government.
Copyright Business Recorder, 2021
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