ISLAMABAD: The Public Accounts Committee (PAC) of the National Assembly on Tuesday ordered scrutiny of the entities under government’s administrative control which have refused audit by the office of Auditor General of Pakistan.

PAC Chairman MNA Noor Alam Khan quoted Article 170(2) of the constitution to remind the heads of the entities under the Ministry of Information Technology and Telecommunication that the AGP was mandated and obligated to audit accounts of any entity.

Some of the entities that refused audit, including performance and regulatory audits, by the AGP were National Electric Power Regulatory Authority (Nepra), Pakistan Telecommunication Company Ltd (PTCL), Pakistan Telecomm­unication Employees Trust (PTET), Telecom Foundation (TF), TF Pipes Ltd, Pak Datacom Ltd.

“How can PTCL refuse audit by the AGP when the government is 62 per cent shareholder in the company? It is regretful that PTCL still owes the government of Pakistan $800 million,” the PAC chairman lamented.

PAC chairman notes PTCL still owes govt $800 million

The PAC noted that the apex parliamentary committee had ordered audit of these entities in 2015. The order was later supported by the Supreme Court. However, PTCL, PTET, TF, TF Pipes, Pak Datacom and Nepra among others had challenged the decision before the Sindh High Court.

While considering the audit report of the Ministry of Industries and Production for the year 2021-22, the PAC directed the government to fix responsibility in case of excess export in tariff area of Rs1.86 billion. The PAC learnt that Export Processing Zone Authority (EPZA) made 66pc export in the tariff area against the allowed limit of 20pc export. According to the audit report, the management failed to maintain check and balance on trading units and exported more than 20pc in the tariff area in violation of customs rules.

The PAC ordered strict action against EPZA officials for failing to pursue investors resulting in loss of Rs41.8m to the exchequer.

The PAC expressed displeasure over allocation of 200 acres of prime land to Country Club at a throwaway price. The PAC was informed that Pakistan Steel Mills Corporation had failed to recover Rs125.3 million dues from Country Club. Instead, the corporation had been providing free basic amenities such as electricity and treated water supply to Country Club.

In response to a question from Senator Mushahid Hussain Syed, Industries Secretary Momin Agha responded that PSM was closed in 2015. Out of four, two Chinese firms had shown interest in purchasing the PSM spread over 19,000 acres. The secretary said that the Ministry of Industries was assisting Privatisation Commission in selling Pakistan Steel Mills.

Published in Dawn, April 12th, 2023