ISLAMABAD, Dec 6: The Public Accounts Committee (PAC) has directed the ministry of defence production to follow the rules and regulations and intensify internal control in the ministry and its subordinate departments
to safeguard the interests of the government.
In a meeting presided over by Malik Allah Yar Khan at the Parliament House on Monday, the PAC discussed the audit paras of the ministry and its subordinate departments for the year 2000-2001, said a press release.
Taking up an audit objection pertaining to undue payment of secure advances of Rs5.880 million to a contractor through false certification, the PAC directed the secretary of the ministry to take remedial measures to avoid reoccurrence of such instances.
According to the audit department, a contract was concluded by the ministry on June 28, 1995, for provision and installation of gantry cranes at the Heavy Industries, Taxila.
On the very next day, stores/machinery worth Rs5,672,000 were shown supplied by the contractor and a payment of Rs4,080,000 and Rs1,800,000 was allowed to him on June 29, 1995, and Oct 26, 1995, respectively, in contravention of rules.
The PAC chairman directed the secretary to initiate disciplinary action against the persons identified by the court of inquiry. On six other audit paras of similar nature, the PAC asked the secretary to direct all the concerned to timely invoke the risk and cost clauses in order to recover the government money.
Amendments in rules and the contracts may be revised where necessary within six months to prevent default by the contractors so that the ongoing work may be got completed at their risk.
