ISLAMABAD, Dec 26: The ad hoc Public Accounts Committee was informed on Wednesday that the ministry of defence had drawn up a comprehensive plan to restructure and make the Karachi Shipyard and Engineering Works (KSEW) a viable entity. The plan would be submitted before the committee for debate and discussion soon

The PAC resumed its meeting at the National Assembly’s committee room and was attended by members, high officials of ministry of defence, representatives of Auditor General’s office and representatives from electronic and print media.

The official sources said the appropriation accounts of defence division (civil) were prepared and submitted for deliberations in the PAC under the special instructions from the Chief Executive’s secretariat in order to assess the performance of various government departments, specially the defence ministry during the military rule.

Earlier the committee, while discussing the audit reports pertaining to defence division appropriation account for 1999-2000, had noted that the KSEW had sustained accumulated losses of Rs2307.833 million as on June 30, 2000, thereby eroding entire equity of Rs464.222 million turning into a negative equity of Rs1843.612 million and its current liabilities were standing at Rs1811.851 million as against current assets of only Rs595.460 million over the corresponding period.

The committee, therefore, directed the ministry of defence to take up restructuring on emergency basis and submit progress report to the PAC. However, when the PAC resumed its deliberations on Wednesday, the defence ministry officials said that although the plan had been prepared but they still needed some time to submit it.

Chairman of the PAC, H.U. Baig directed all the concerned departments and sections to clear paras pertaining to them by Jan 31. He gave a time limit of 60 days for old cases involving recovery of amounts. He also directed the defence ministry officials to make sure that the relevant rules were applied in their true spirit.

He also expressed satisfaction over the fact that the effectiveness of auditing mechanism and the vigorous persuasion by the PAC had created a sense of responsibility and fear of wrath of law among the officialdom.

He said the directives of the PAC were bound on all departments for implementation and the government would take action against any violations.

The committee was told that during the year 1999-2000, 13 audit reports on regularity audit and 11 special audit reports pertaining to the defence division were issued and the aggregate financial irregularities were estimated at Rs5188.073 million, out of which Rs371.777 and $0.909 million were recovered.

While discussing the audit report of defence services 1999-2000, the committee noted that as many as 78 cases were proposed to be considered.