The Public Accounts Committee (PAC) Thursday cleared an audit objection regarding the import of 42 luxury vehicles, worth $ 1.452 million, by Pakistan Navy without seeking the approval from the prime minister. The auditor general of Pakistan's audit report pointed out that the Navy in 2011 imported 42 luxury vehicles - 40 Land Cruisers and 2 BMW cars - without the mandatory approval of the Prime Minister and that too while there was a ban on the import of such vehicles.
The PAC meeting held here under the chairmanship of Syed Khursheed Ahmed Shah discussed and reviewed the audit paras of the Ministry of Defence Production for the year 2013-14. During the scrutiny of the audit report of the Ministry of Defence Production for 2013-2014, the PAC was informed that the Cabinet Division in 2007 banned the import of luxury vehicles.
When PAC Chairman Shah hinted to settle the audit para, the audit officials did not recommend him the settlement. The officials of the Auditor General Pakistan (AGP) argued that since there was a serious violation of the procurement related rules; therefore, the committee may direct the principal accounting officer (PAO) to proceed into this matter.
The chairman PAC snubbed the audit officials for raising objections. Shah said that there is a complete silence over the gross irregularities and billions of rupees of corruption in contracts of New Islamabad Airport. "Why you people speak against these irregularities," he asked and settled the para.
According to the audit report, the prime minister was the only authority which can relax the ban on such imports, adding that these luxury vehicles were imported with the approval of services chiefs. The report claimed that the Cabinet Division under the austerity measures banned the import of luxury vehicles. The director procurement of Navy informed the PAC that the import of turbo vehicles was banned at the time of the import. He said that the Cabinet Division lifted the ban later on.
Convinced by the reply of the Navy officials, Shah settled the audit para. The PAC was also told that the management of Karachi Shipyard awarded a project worth Rs 16.3 million to the second lowest bidder, whereas under the law the first lowest bidder was entitled to get the project.
Managing Director Karachi Shipyard responding to the audit objection said since the second lowest bidder offered Rs 9.1 million discount, therefore, the management preferred him over the first lowest bidder. The PAC member Sheikh Rashid Ahmed remarked that it is not the standard practice to offer discount separately, as at the time of awarding the contract, the company is required to make a decision on the bid only.