NA body resents award of contract: Grid station at Kamra
By Our Reporter
ISLAMABAD, Dec 7: The Public Accounts Committee (PAC) of the National Assembly has expressed its dissatisfaction at awarding of the contract for establishment of a 132KV grid station at Kamra
on higher rates causing a loss of Rs20.273 million to the national exchequer.
A press release issued here said the PAC met under the chairmanship of Malik Allah Yar Khan at the Parliament House on Tuesday to discuss the audit paras of Ministry of Defence Production and its subordinate departments for the year 2000-01.
The audit department informed the PAC that in June 1995, the office of Director Works and Chief Engineer (DW&CE) awarded a contract worth Rs64,153,805 to the AEG Pakistan (Pvt) Limited for establishment of the 132KV grid station at Kamra.
Whereas, a similar contract for installation of a grid station at Taxila was awarded by the DW&CE in March 1994 to the same firm at a cost of Rs39,000,000. The committee wondered how the contract was awarded at 66 per cent higher rates despite the clear-cut governmental instructions to fulfil the codal formalities.
The PAC directed the Defence Production secretary to follow the codal formalities in future and fix responsibility against those accountable for the lapse. Discussing another audit objection pertaining to the non- extension and non-encashment of the bank guarantee of a Polish firm worth $0.0549 million, the PAC directed that an inquiry be launched and the amount recovered from those responsible for dereliction of duty.
The director-general audit briefed the committee that the Defence Production Director-General made 20 per cent advance payment to the said firm for supply of 3,000 rounds of ammunition on accepting an unconditional bank guarantee. After conducting the tests, the General Headquarters MGQ's Branch (ITD Directorate) recommended the cancellation of the contract in October 1997.
After the initiation of recovery proceedings, it was revealed that the bank guarantee provided by the firm had expired on March 30, 1997, and had also not been extended, and moreover the firm had also became bankrupt.
The PAC observed that all concerned be directed to protect the interests of the government, and oversight in this regard would not be tolerated. The Defence Production secretary informed that their claim had accepted by the Polish government and the money would be recovered shortly.
On the issue of pending departmental inquires and court cases, the PAC directed the Ministry of Defence Production to pursue the cases for recovery of dues from the defaulting contractors in consultation with the Ministry of Law and Attorney General of Pakistan, besides completing departmental inquires at the earliest and reporting these to the committee.
Several other audit paras were settled on accepting the replies of the officials concerned, as recommended by the PAC's and subject to the confirmation by the audit department.
The meeting was attended by MNAs Syed Qurban Ali Shah, Prof Asiya Azeem, Chaudhry Nisar Ali Khan, Col (retired) Ghulam Rasool Sahi, Riaz Fatyana, M. Safdar Shakir, Hafiz Hussain Ahmad, Kunwar Khalid Younis, Chaudhry Qamaruz Zaman, Maj (retired) Tanvir Hussain Syed, Auditor General of Pakistan and other officers of the departments concerned.
