ISLAMABAD, May 25: The Pakistan Television (PTV) management, led by its managing director Arshad Khan, failed to satisfy the Public Accounts Committee (PAC) on financial irregularities and award of various contracts worth millions of rupees to advertising agencies whose owners had disappeared without a trace after defaulting on payments.

The elected representatives of the PAC asked probing questions about collusion of PTV officials in siphoning off and wastage of public funds when the committee met at the Parliament House on Wednesday. It directed the PTV MD to take action against the officials who failed to do their duty, and punish them.

Stunned by the PTV management’s plea that some of the owners and directors of the advertising agencies who had been receiving business contracts of millions of rupees from the state television were not traceable, the PAC deferred its proceedings till first week of July with a directive to PTV to come prepared next time.

Reprimanding the PTV bosses, MNA Abdul Ghafoor Haideri said: “You are not prepared and have not answered a single question properly.”

When the PTV officials gave contradictory replies, MNA Qurban Ali Shah caught them in the act and said: “Your responses are full of contradictions and are a pack of lies.”

The PTV MD remained silent when MNA Qurban Ali Shah asked how advocate Ashiq Hussain Mehr had been given a case in April 2000 when the PTV told the PAC in writing that the advocate was removed from the panel in December 1999.

The MD PTV had to face another embarrassment when he could not tell the PAC the qualifications of the person dealing with the legal matters of the organization since the retirement of the legal officer about 10 months ago.

PAC Chairman Malik Allahyar noted the absence of the PTV’s legal department in the meeting and directed Mr Khan to ensure presence of all the relevant staff, including the officials of the legal department in the next PAC meeting.

When Major (retd) Tanvir Hussain and Shah Mehmood Qureshi sought details about the amount spent by the PTV during the last eight years in pursuing the case against Rafi Peer Theatre Group, the MD PTV had to cut a sorry figure and said: “The details are not available. We will provide the details in the next meeting.”

MNAs Chaudhry Nisar Ali and Qurban Ali Shah were of the view that the PTV did not seem interested in pursuing the case.

MNA Riaz Fatiyana and Major (retd) Tanvir advised the PTV to approach the High Court for expeditious disposal of the case.

On the recommendation of Chaudhry Nisar Ali Khan, the PAC chairman bound the PTV MD to give periodic reports about progress on pursuing the case against Rafi Peer Theatre Group in the courts of law. The next date for the case is fixed for June 6.

The MNAs pinned down the MD to explain his claim that the PTV had made profit of Rs180 million till March 2005 and that 37 per cent increase in advertising revenue had been achieved.

MNA Ch Nisar said the predecessor of Mr Khan had also made claims that the PTV was out of the red, but the facts which subsequently came to light proved the reality to be otherwise.

When MNA Qamar Zaman asked the MD to give details of the shares of federal and provincial governments in the claimed increase of 37 per cent advertising revenue, Mr Khan was caught unprepared for the question. “I do not have the figures,” he said.

The PAC members caught the fudging of figures when the MD claimed that 99 per cent of the Rs214 million outstanding against public and private sector organizations had been recovered.

The auditor general of Pakistan refused to substantiate the claims of recovery by the PTV and if recovery was made, the auditors should have been informed with “genuine documents”. No proper documents were provided to the auditor general’s office about the recovery, the deputy auditor general said.

MNA Qamaruz Zaman Kaira pointed out that the PTV’s claims of 99 per cent recovery were based on recovery against sales and not recovery against recoverables. When MNA Kaira questioned the MD that recovery was less than 50 per cent, and Rs128 million of Rs214 million was yet to be recovered, Mr Khan said the ratio of recoveries decreased as the cases grew old. At this, MNA Kaira warned the MD that facts narrated before the PAC should be clear.

When the claims about 99 per cent recovery of Rs214 were exposed, Malik Allahyar directed the PTV to get the claims about recovery verified from the auditor general.

Answering questions about an agreement between Sports Star International and the PTV, the PAC was informed that the recovery relating to North American operation was outstanding. The PTV officials told the PAC that in the arbitration, KBSA’s view was prevailing against that of the PTV but the liabilities would be borne by the Sports Star International.

The PAC directed the PTV to approach the relevant government departments to put the names of directors of Crescent Communication on the Exit Control List and seek help of the FIA to trace them.

The audit findings which were deferred to be taken up again for discussion in July by the PAC included non-implementation of agreement resulting in default of Rs45.208 million; expected loss of Rs18.606 million due to non-recovery of dues from three advertising agencies including FAB Communication, Transworld International and KSK Advertising; loss of Rs11.11 million due to non-recovery of dues from Crescent Communication along with claims of Rs22.19 million as damages; loss of Rs1.43 million due to non-realisation of bills from United Advertisers; non-recovery of Rs5.55 million from Orient Mcann Erikson; infructuous expenditure of Rs0.44 million on sinking of tubewell due to ill planning and mismanagement; irregular appointments involving payment of Rs21.466 million to Suhail Hashmi and a woman secretary; irregular and unauthorized expenditure of Rs3.188 million on account of provision of mobile telephones to the officers; irregular payment of Rs0.117 million to ex-consultant Azhar Lodhi and costly decisions of board of directors taken in violation of government instructions.