ISLAMABAD: The Public Accounts Committee meeting on Wednesday expressed concern over outstanding payments, irregular commissions, and unauthorised recruitments while reviewing audit objections related to the Ministry of Commerce and other financial matters.

Chaired by Junaid Akbar Khan, the committee questioned the Ministry of Commerce officials’ delay in conducting Departmental Accounts Committees (DAC). PAC member Naveed Qamar recused himself from discussions concerning audit objections related to his tenure, leaving the meeting midway.

Outstanding liabilities of TCP

The PAC was informed that various institutions owed the Trading Corpora­tion of Pakistan (TCP) a total of Rs311 billion, according to the secretary, Ministry of Commerce, Jawad Paul.

The TCP is yet to receive Rs93 billion in principal amount and Rs218 billion in interest from various departments, the meeting was told.

The Utility Stores Corporation had an outstanding payment of Rs103 billion. The National Fertiliser Corporation owed TCP Rs123bn and provincial food departments of the four provinces are also among the TCP’s debtors.

Mr Paul informed the committee that while TCP imported goods for various institutions, it was ultimately responsible for paying interest due to delayed payments. He said the borrowing institutions should be held accountable for timely settlements.

The committee reviewed an audit objection regarding TCP’s unauthorised and excessive commission charges on wheat imports. The audit report revealed that TCP management charged two per cent commission, whereas the approved rate was only 0.75 per cent.

This discrepancy resulted in a financial loss of Rs703 million. The committee noted that this commission was imposed in violation of the Economic Coordination Committee’s (ECC) directives.

The PAC referred the matter back to the DAC for further examination.

Another audit objection focused on the TCP’s sale of rice mills without conducting a proper valuation or market survey. The PAC directed this issue back to the DAC for reassessment.

The PAC also reviewed audit objections concerning the State Life Insurance Corporation’s handling of health programme payments and real estate holdings.

The committee questioned why hospitals have not received payments under the health facility programmes.

The chairman of State Life Insurance Corporation, Shoaib Javed Hussain said that Rs21bn have been disbursed, with Rs3bn still pending. The committee instructed auditors to verify these financial figures. Regarding State Life’s real estate assets, the audit revealed that over Rs1.17bn worth of plots have been encroached upon.

Encroachments were reported on three plots — two in Lahore and one in Karachi. The SLIC chairman said that these plots were acquired through nationalisation and had pre-existing encroachments.

The committee expressed frustration over the ministry of law’s lack of preparation on an audit objection.

The committee chairman asked the ministry’s representative to leave the session due to their inadequate responses. The PAC summoned the secretary of law for the next meeting. Chairman Junaid Akbar Khan warned that strict action would be taken against officials attending the committee unprepared.

The PAC discovered multiple instances of rehiring retired officials at State Life Insurance Corporation. A 68-year-old assistant general manager of IT was rehired multiple times after retiring in 2019.

Published in Dawn, March 13th, 2025