ISLAMABAD, Nov 26: The Public Accounts Committee has questioned the transfer of 67 per cent shares of the Pakistan Engineering Company (Peco) to private bidders.
A sub-committee of the PAC on Wednesday asked the auditor general to investigate that under what rules the shares were offloaded through the stock exchange, and submit a report after two weeks.
Officials of the ministry of industries informed the committee that 67 per cent shares of the company were sold to private sector in 2003 by the National Investment Trust (NIT) and Investment Corporation of Pakistan (ICP) through the stock exchange.
However, they could not answer when asked who had allowed the sale of the shares because under its rules only the ministries of industries and finance could take this decision. “According to our information, the finance ministry is also unaware of the sale,” committee member Sardar Ayaz Sadiq said. According to the ministry of industries officials, NIT and ICP, which fall under the finance ministry, had unilaterally taken the decision.
Referring to former prime minister Shaukat Aziz who was holding the portfolio of finance ministry in 2003, Sardar Sadiq said the same elements might be involved in the sale of Peco shares who wrecked havoc with the stock exchange in 2005.
Committee members Yasmin Rehman and Rana Mahmoodul Hassan also attended the meeting. Talking to journalists after the meeting, Sardar Sadiq said they have to fix the responsibility because without buying 75 per cent shares nobody is allowed to take such a decision.
“If the ministry of industries does not know, if the ministry of finance does not know, then who allowed NIT and ICP to put up Peco ’s shares for sale,” Sadiq questioned.
Peco owns several hundreds acres of land worth billions of rupees right in the heart of Lahore and probably that is the ultimate target of the investors from the private sector. At present, Peco is mainly producing steel structures ordered by Wapda and running at profit. Peco officials present on the occasion said they were eyeing Rs1.7 billion profit during the ongoing financial year and would achieve the target despite the present financial crunch in the country.—Staff Reporter