International donors and NGOs: provincial governments asked to examine accords thoroughly

Public Accounts Committee's sub-committee directed the provincial governments, autonomous and semi-autonomous bodies to thoroughly examine the agreements before signing them with the international donors and NGOs. Shafqat Mahmood convened the committee meeting on Wednesday which examined the audit reports of Ministry of Kashmir, Gilgit-Baltistan for year 1998-99.
The committee directed the governments that it should not deposit foreign aid directly in their accounts and follow the laid down rules. It further directed the ministries to surrender their left over before May 15 otherwise, audit and accounting system of the government will collapse. It further observed that the country has to produce electricity through thermal power as it does not have any policy relating to the promotion of wind power.
The committee further observed that Gilgit-Baltistan has a capacity to produce 27,000MW power through wind energy, which is currently generating 106MW electricity, saving Rs 600 million to national kitty. Shafqat said the government spent Rs 500 billion on payment of circular debt and additional Rs 400 billion is being spent on it. The committee further learnt that coal power projects have environmental impact in China as big cities are polluted with dust.
Audit official informed the committee that there was serious embezzlement in awarding contract of four civil supply schemes by Ministry of Kashmir Affairs during 1991-95 for which the government had to bear a loss of Rs 1.65 million. The committee directed the authority concerned to give report within three months. Principal Accounting Officer Shahid Ullah Baig said the provincial government is giving subsidy on transport in those areas where private transporters are afraid to run their buses because of sectarian violence. Convenor Committee asked Shahid Ullah to run public transport on public private partnership.
Shahid further informed that Gilgit-Baltistan has been giving subsidy on wheat since the government of former Prime Minister Zulfiqar Ali Bhutto. He further disclosed that majority of 46 flour mills working in the province are illegal and selling flour at higher rate. Action against them must be taken. Audit official further informed the committee that in 1998-99, a tender of water and electricity was awarded at 31.58 percent higher rate which inflicted loss of Rs 10.5 million. However, the ministry justified the rates.