Mismanagement ruining public enterprises in Pakistan: PAC
Pakistan Times Staff Report

ISLAMABAD: Public Accounts Committee (PAC), Friday noted that various public enterprises, ruined by mismanagement and misappropriation of funds, were on their way to collapse as Heavy Electric Complex has grown its losses more than its capital.

In its meeting held here in the Parliament House, with Malik Allah Yar Khan MNA in the chair, the committee directed the M/o Industries and Production to circulate instructions to all departments under its administrative control to establish a strict monitoring and evaluation system and rules and regulations be followed in letter and spirit.

While discussing the audit objection of grant of incentive bonus to the executives/workers to the tune of Rs 55.744 million by Pak-Arab Fertilizers Ltd., in violation of the instructions of the M/o Finance, PAC observed that “performance evaluation scheme” introduced by the government should not be misused.

It further ordered that bonuses should be given to the employees of profit-earning entities after following proper procedure.

PAC directed the Secretary M/o Industries to conduct an inquiry and identify persons responsible for flouting the rules.

PAC expressed its concern on the state of affairs at Heavy Electrical Complex, Hattar. Committee was informed that the accumulated losses of the company have risen to Rs 573.927 million as on June 30, 2001, eroding all its capital of Rs 413.196 million.

The project was installed at the capital cost of Rs 1110.853 million as a result of an agreement with WAPDA for utilization of 70 per cent manufacturing capacity of the complex, however, WAPDA purchased only 11 transformers till year 2001.

PAC directed M/o Industries to bring that into the notice of government so that it could bind WAPDA to oblige its contractual obligations. PAC also asked the Ministry to carry out restructuring at HEC so that it could be converted into a viable entity.

PAC expressed its displeasure over audit objection of loss of Rs 815,672 due to excessive transportation charges paid to a private contractor by HEC. PAC observed that HEC paid excessive freight to the transporter and procedural formalities were also not fulfilled.

PAC warned the HEC not to compromise on procedures and transparency. PAC regularized various audit objections by accepting replies of the concerned departments subject to verification by the audit.

The meeting was attended by MNAs Syed Qurban Ali Shah, Riaz Fatyana, Safdar Shakir, Lt. Col (Retd) Ghulam Rasool Sahi, Liaquat Baloch, Qamar-uz-Zaman Kaira, Ch. Nisar Ali Khan and Asiya Azeem apart from Auditor General of Pakistan, Accountant General of Pakistan, Secretary M/o Industries and Production and other officers of the concerned departments.●