Clearance of audit objections: Parliamentary panel irked by protracted delays

A parliamentary panel expressing serious anger on Monday over the failure of Ministry of Commerce and attached departments to get audit objections cleared pending since 1999 has advised the ministry and attached departments to closely cooperate with Auditor General of Pakistan (AGP) in settling the pending audit paras.

The subcommittee of the Public Accounts Committee met here under the chairmanship of Ayaz Sadiq to review, discuss and settle audit objections against the Ministry of Commerce and attached bodies of years 1999-2009 and snubbed the ministry officials over their failure to settle the audit objections against subordinate bodies.

The panel said that the Commerce Ministry's high-ups, especially federal secretaries, over the years have badly failed in settling the pending audit paras of the attached departments including State Life Insurance Corporation (SLIC), National Insurance Corporation Limited (NICL) and Trading Corporation of Pakistan (TCP).

Briefing the panel, the officials of AGP said that Rs 9.240 million loss incurred to national kitty due to non-recovery of rent from Pakistan Telecommunication Corporat-ion (PTCL) by SLIC which in January 1999 signed an agreement with PTCL of renting the building at Rs 10 per squire feet. The AGP officials said that as per contract, 25 percent increase in rent was greed between the two parties but PTCL kept on violating the agreement and thus over the years caused Rs 9.240 million loss to the national kitty.

The joint secretary Ministry of Commerce replying to the audit objection said that the matter was still not resolved as the SLIC went to a court, where the company won the case but later PTCL challenged the case in appellant court.

The panel directed the joint secretary to hold an inquiry into the matter with also checking the existing rents in the area from 1999 to date and fix responsibility on the officials involved and provide a detailed report to the PAC Secretariat.

Briefing on another audit objection, AGP officials said that non-recovery of insurance claims from NICL caused Rs 120.245 million loss to Trading Corporation of Pakistan. The AGP officials said that in 2005 TCP stored 42,800 bales of cotton in Rahim Yar Khan godowns but due to two fire incidents, over 39,000 bales of cotton were destroyed, TCP logged a claim with NICL for an amount of Rs 414.8 million but the NICL paid only Rs 294 million and as yet has not paid rest of the amount.

The panel directed the joint secretary Commerce Ministry to fix responsibility on the officials involved within 10 days, saying that the ministry has badly failed in fulfilling the responsibilities. The chairman committee said if the ministry fails to take appropriate action against the officials involved, the strict action as per law will be taken against them.

During the discussions it was revealed that the almost all the audit paras against the ministry and attached departments since 1999 have been pending involving multimillion rupees.

Discussing the audit apras of the Ministry of Information Technology and Telecommunication, the panel was informed by the officials of the AGP that on the directives of the PAC, 9 paras were sent to National Accountability Bureau (NAB) for investigations. The NAB official replied that the body has only received one para which was probed and inquiry was closed.

The secretary Ministry of Information Technology said that as per record, his ministry has forwarded all the 9 paras to the investigation agency. The panel directed NAB and the ministry to review their records and bring a detailed report to the panel within 10 days, saying no excuses will further be accepted.

Meanwhile, another subcommittee of the PAC referred audit reports regarding New Islamabad International Airport, Grand Hyatt Hotel and Royal Palm Country Club to the main committee to decide their fate.

A meeting chaired by Syed Fakhar Imam was convened to discuss the finalization of report of the sub-committee tasked by the main committee to solve audit paras of three main projects.

Shahida Akhtar Ali, member of the committee, said that some of the paras related to these three projects were sent to National Accountability Bureau (NAB) and they will update the committee on whole on these projects and not in bits and pieces.

Syed Fakhar Imam emphasized that AGP should also conduct performance audit side by side the financial audit of public entities which would improve the system.

Shahida Akhtar Ali said that the cost of New Islamabad International Airport was escalated from Rs 35 billion to Rs 107 billion and the airport was still incomplete.

Similarly, the construction cost of Grand Hyatt Hotel was escalated to Rs 4.80 billion and the matter is sub judice in the Supreme Court.

"I don't think, Rs 100 billion were spent on Islamabad International Airport" said Syed Fakhar Imam, adding he felt sad when he compares the newly constructed airport with other international airports of the world. He said these airports are entry point for the tourism promotion but unfortunately "our entry points are not much attractive."

Shahida Akhtar Ali remarked that a parallel runway was constructed for parallel landing and takeoff but the distance between the two runways was narrowed due to which parallel landing failed but the other runway was used for taxi way which was a joke.