PAC orders USC’s two-year audit

Published February 25, 2021
The report pointed out that the USC management did not replace the expir­­ed items which cost the exchequer Rs353 million. — AFP/File
The report pointed out that the USC management did not replace the expir­­ed items which cost the exchequer Rs353 million. — AFP/File

ISLAMABAD: The Pub­lic Accounts Committee on Wednesday ordered two-year performance audit of the Utility Stores Corpora­tion as the Auditor General of Pakistan informed the PAC that audit of subsidies to the USC during Covid-19 and report of the last financial year were ready for laying before parliament.

USC managing director Umer Lodhi briefed the PAC on the losses and sale of substandard edible oil.

The auditors pointed out that under the Pakistan Standard and Quality Control Authority (PSQCA) rules, it was mandatory for the USC management to get quality control certification before displaying the eatables and edible oil on shelves for onward sale.

USC secretary Afzal Latif said the PSQCA certification was required for the manufacturers, and not for the retailers. Being a retailer, he added, the corporation was not under any obligation to get certification.

In response to the audit observation regarding quality test, Mr Lodhi said there was no tradition or rule of quality test for a retail outlet. He, however, said that in case of any complaint by a user, the USC management could ask the manufacturer for a replacement of substandard goods.

The report pointed out that the USC management did not replace the expir­­ed items which cost the exchequer Rs353 million.

The USC management said the provision against slow-moving and obsolete items was made in accordance with the international accounting standard and in the light of approval of the board of directors. It said the USC had entered into agreements with the vendors/suppliers under which they were legally bound to lift back the slow moving and damaged/expired items.

The PAC directed the audit officials to get the replacement of the expired items verified with the USC.

PAC chairman Rana Tanveer Hussain also asked Auditor General Javed Jahangir to conduct USC’s performance audit of two years and submit a report in a month.

Published in Dawn, February 25th, 2021

Opinion

For whom the clock ticks
Updated 22 Apr 2021

For whom the clock ticks

Tarin will have to succeed in order to cement his position within the cabinet.
Ending the ‘forever war’
Updated 21 Apr 2021

Ending the ‘forever war’

Regardless of who the adversary was at any point, two generations of Afghans have known only war.

Editorial

22 Apr 2021

Capping power debt

THE suggested revision in the Circular Debt Management Plan, which aims to cap the flow or addition of new debt to...
22 Apr 2021

Istanbul postponement

WHILE the postponement of the Istanbul peace talks on Afghanistan, which were scheduled to be held later this week,...
22 Apr 2021

No mining precautions

YET another accident caused by a methane gas explosion has been reported from the dangerous coal mines of...
More mishandling
Updated 21 Apr 2021

More mishandling

By its bad decision-making and weak management, the govt has allowed the TLP to garner more importance and heft than it deserves.
21 Apr 2021

Declining FDI

THE sharp decline in FDI in recent months is worrisome. New State Bank data shows that FDI has plummeted by a hefty...
21 Apr 2021

The digital divide

IN the Economist Intelligence Unit’s annual Inclusive Internet Index report, measuring internet inclusion in terms...