ISLAMABAD, July 7: The Public Accounts Committee (PAC) of the National Assembly has conveyed its displeasure over non- surrender of Rs426 million in respect of six different grants of the agriculture ministry for the year 2000-01.

According to a press release, the PAC chairman directed the ministries and divisions of the federal government to strengthen their internal financial controls and strictly monitor the utilization of their budgetary allocations.

The committee in its meeting, presided over by MNA Malik Allahyar Khan on Wednesday, took up appropriation of accounts and audit report of the agriculture ministry for financial year 2000- 01.

The committee regularized various audit observations subject to confirmation by the audit department and as recommended by the Departmental Accounts Committees (DAC). The PAC chairman asked the ministries not to demand unnecessary supplementary grants and surrender unspent amounts/savings within the time stipulated by the finance ministry.

The committee constituted a sub-committee under the convenership of MNA Syed Qurban Ali Shah to probe into the loss suffered on the purchase of DAP fertilizer worth $134 million at higher rates.

The sub-committee would suggest action to the PAC within one month against the person responsible for the loss to the national exchequer. While discussing the audit para pertaining to the loss incurred by accepting defective fertilizer worth $1.752 million, the PAC ordered for penalization of supplier and initiation of disciplinary action against the director, Fertilizer Import Department.

According to the details given by the audit department, a consignment of 31,475 metric tons of DAP fertilizer was procured from Conagra Ltd. Upon arrival of the consignment at Karachi Port and conducting tests, it was revealed that the fertilizer was nutrient deficient according to the purchase manual of FID and was accepted which caused a loss to the national exchequer.

The PAC directed the agriculture ministry to inform the PAC about the progress of the inquiry proceedings within one month. The committee also discussed the performance audit report of Pakistan Central Cotton Committee (PCCC).

The chairman observed that a strong system of internal control, proper record keeping and computerization of record must be established within the PCCC. The chairman directed the PCCC management to enhance the funds allocation for research activities and proper accounting of cotton cess recovered or recoverable may be properly realized and maintained.