19 February 2005	Saturday	09 Muharram 1426

ISLAMABAD, Feb 18: The Public Accounts Committee (PAC) has directed the Ministry of Industries and Production to establish a strict monitoring and evaluation system and ensure adherence to rules and regulations in all departments/corporation under its control.

The ministry was also told to issue instructions to the departments concerned in this regard. The PAC meeting, presided over by MNA Malik Allah Yar Khan, continued its discussion on the audit report on public sector enterprises for the year 2000-2001 here on Friday.

The meeting discussed the audit objection to grant of incentive bonus to the executives/workers to the tune of Rs55.744 million by Pak-Arab Fertilizers in violation of the instructions of the Ministry of Finance.

It was observed that "performance evaluation scheme" introduced by the government should not be misused and bonuses only be given to the employees of the profit- earning entities after following proper procedure.

The PAC directed the industries ministry's secretary to conduct an inquiry and identify persons responsible for flouting the rules. It also expressed its concerns over the state of affairs at the Heavy Electrical Complex, Halter.

The meeting was informed that the accumulated losses of the company had risen to Rs573.927 million as on June 30, 2001, eroding all its capital worth Rs413.196 million.

The project was started at a capital cost of Rs1,110.853 million as a result of an agreement with the Water and Power Development Authority for utilization of 70 per cent manufacturing capacity of the complex. However, Wapda purchased only 11 transformers till year 2001. The PAC also asked the ministry to carry out restructuring at the electrical complex so that it could be converted into a viable entity.

The PAC expressed its concern over an audit objection to a loss of Rs815,672 due to excessive transportation charges paid to a private contractor by the complex. The committee observed that the complex paid excessive amount to the transporter and procedural formalities were also not fulfilled. The complex management was warned not to compromise on procedures and transparency.