November 6, 2001	Tuesday	Shaba’an 19, 1422

ISLAMABAD Nov 5: Pakistan National Shipping Corporation (PNSC) has become a big burden on the national exchequer showing no signs of betterment in its performance and better it should discontinue its operations or it may be liquidated.

This suggestion came from Ad hoc Public Accounts Committee chairman H U Baig during the APAC meeting here on Monday.

The committee, which met at the Parliament House, was told that the PNSC had accumulated losses to the tune of Rs1364.591 million as on June 30, 2001 and eaten up its equity as well as an amount of Rs4 billion pumped by the government in the year 1990-91.

The chairman of the committee did not agree with the contention of secretary, Ministry of Communications, for revival programme/efforts for the PNSC, keeping in view the fact that the corporation has become negative net worth company.

According to him, continued borrowing by the corporation will add to government’s misery, lead to fatten the loses and by this act the management will be deceiving themselves.

The Auditor General of Pakistan present at the meeting took serious view of the fact that the Ministry for Communications did not surrender the savings worth Rs70.164 million against the grant No 146 within stipulated date. Similarly, he informed the APAC that there was an excess expenditure of Rs4.1 million against grant No 147 of the same division for the year 1999-2000.

The APAC chairman expressed concern over lack of monitoring, financial control and administration of financial propriety. He, therefore, ordered the principal accounting officer (PAO) to hold inquiry, fix responsibility and initiate disciplinary action against those responsible for this negligence and reported be submitted to the APAC within one month time.

In another case the APAC directed the PAO to hold an inquiry on the loses of Rs8.737 million due to non-recovery of liquidated damages from a contractor of the Gawadar Fish Harbour project.

H U Baig constituted a sub-committee under the chairmanship of Mujahid Eshai to examine the losses of Rs17.933 million, Rs16.022 million, Rs13.264 million and Rs3.398 million respectively incurred by the PNSC on chartering various ships from different port cities to Pakistan.

The meeting was also attended by Lt Gen (Retd) Talat Masood, Abdullah Akmal, Muzaffar Ahmed, M Hasan Bhutto, S Shoukat Hussain Kazmi, Mujahid Eshai and S M Zafarullah, besides auditor general of Pakistan, senior deputy auditor general, accountant general of Pakistan, secretary Ministry of Communications, chairman Port Qasim Authority and senior officers of the departments concerned.