The Auditor General of Pakistan (AGP) has detected misappropriation, irregularities, mismanagement and operational inefficiencies of over Rs 166 billion in Pakistan Telecommunication Authority (PTA).
The audit report on the accounts of telecommunication sector for Audit Year 2017-18, a copy of which is available with Business Recorder, detected short deposit of surplus Rs 6.495 billion into the Federal Consolidated Fund, irregular/unlawful payment of Rs 731 million to Ministry of Information Technology and Telecommunication, un-authorised payment of proficiency incentives and Eid allowance of Rs 77 million.
The audit report observed that PTA extended undue favour to Mobilink during auction of NGMS which caused a loss of $295 million (Rs 30.680 billion).
The record of NGMS auction 2017 and policy directives issued by the federal government dated 27th March, 2017 was examined. Four mobile operators (M/s PMCL, Telenor, Zong and Ufone) made a joint representation. The operators requested the minister of state and the authority for a time span of at least 6-8 weeks for conducting the auction around 30th June, 2017.
The requests of the operators were based on the fact that approval from the board of directors was to be sought for participating in the auction. The PTA did not consider the request of the operators and finalised the auction. Resultantly only one bidder (M/s PMCL) submitted application and showed willingness to buy the spectrum at base price.
Audit was of the view that PTA failed to receive competitive rates and deprived other operators of a level playing field.
The AGP further detected loss of around Rs 61.95 billion due to unlawful usage of 4G services in AJK. According to Section 6 of Pakistan Telecommunication (Re-organization) Act, 1996 the Authority in exercising its functions and powers under the Act, shall ensure that - (a) rights of licensees are duly protected; (b) all of its decisions and determinations are made promptly, in an open equitable, non-discriminatory, consistent and transparent manner; and (e) fair competition in the telecommunication sector exists and is maintained. The Section 20 further states that no person shall establish, maintain or operate any telecommunication system or provide any telecommunication services for which he has obtained a license under this Act.
During audit it was observed that PTCL and SCO launched provision of 4G/LTE services to its customers/public at large in AJK &GB without getting/buying spectrum and valid license of 4G /LTE services. It is worth mentioning that PTA is yet to start the auction process of spectrum of 4G/LTE services in AJK&GB. M/S CMPAK (Zong) had also lodged a complaint on June 14, 2017 that such a launch would be discriminatory and anti-completive. This resulted into loss to national exchequer of Rs 61.95 billion approximately (the last price of 4G spectrum of Mobilink).