ISLAMABAD, July 20: Public Accounts Committee (PAC) on Thursday condoned the Civil Aviation Authority (CAA) losses to the tune of millions of rupees with a mild note of warning that the department should be careful and transparent in its future transactions.
Secretary Defence Lt-Gen (retired) Tariq Wasim Ghazi defended CAA saying that the irregularities reported in the audit paras were “judgmental matters and not procedural violations.” In certain other instances PAC asked CAA to expedite the recoveries.
Chairman PAC Malik Allahyar while going through the audit paras observed that whenever an agreement is done it should be transparent and no lacunas should be left so as to give rise to confusion afterwards.
He further said that all transactions should be above board and the officers should be confident that there is no element of doubt whatsoever in the deal.
Mr Allahyar said if there were any laws that were not conducive to routine business and those that were being described by the officials as draconian should be amended.
The PAC was told that project-director New Terminal Complex Lahore Airport made payment for some extra items at pro-rata basis without prior approval of competent authority resulting in excess payment of Rs2.006 million and $0.079 million.
Similarly, in another audit para it was pointed that project director New Terminal Lahore made payment for excess quantities of various items of work than provided in the bill of quantity without the prior approval of competent authority. Deviation from the bill of quantity resulted in over payment of Rs69.614 million and $1.806 million.
In both instances CAA was asked to get post-facto approval from the competent authority for the settlement of paras.
Another audit observation showed that Airport Manager Multan unauthorisedly established a welfare canteen in the commercial zone of the airport. The space rent was not deposited by ASF and the negligence resulted in non-recovery of Rs0.449 million. The irregularity was condoned as PAC was informed that the canteen has been closed.
In a similar case, the director airport Karachi granted rebate to a licencee of welfare canteen on agreed rate of licence fee without approval of competent authority resulting in loss of Rs1.253 million.
The audit noted that 25 per cent discount was given in tender notice and all bidders offered bids with 25 per cent subsidised rates for CAA employees.
Award of further rebate after award of contract, it said, was unjustified. A board of inquiry held in this regard established that neither licencee signed any licence agreement nor provided food at subsidised rates to CAA employees.
Moreover, the director airport Karachi granted exemption in utility charges without provision in agreement to the licencee of the welfare canteen. This resulted in loss of another Rs0.469 million.
As the PAC condoned these irregularities observing that concessions were not properly managed director general CAA told the meeting that welfare canteens have been closed.
Director Jinnah Terminal Karachi incurred a loss of Rs8.969 million by allowing a 25 per cent rebate to a licencee of advertising in airport premises on the plea that 5 less sites were handed over to the licencee for display. 120 sites were agreed, but only 115 could be given because the remaining had already been given to another advertiser.
The audit was of the view that the rebate should have been proportionate to the number of less sites given to the licencee. Secretary defence conceded that wrong had been done and the documents of defence ministry admit the losses due to mismanagement of the official. The PAC decided to settle the audit para.
Loss of Rs5.052 million was reported from Lahore Airport because of non-awarding of contract at re-tendered rates. Certain PAC members had doubts over the issue, but this too was settled. PAC directed CAA to expedite recovery of Rs4.015 million from M/s Blazon Advertising. Sindh High Court had issued decree in favour of CAA.
Auditors present at the meeting opined that this default occurred because of laxity of CAA as agreement clauses provided six monthly advance payment by the licencee, which was not enforced.
However, CAA officials contended that there were certain disputes which held up the payment. CAA was also asked to take steps for recovery of Rs37.968 million from airlines that had closed operations.
Regarding outstanding dues of PIA, it was decided that the matter should be resolved in a couple of months.