Islamabad
The sub-committee of the Public Accounts Committee (PAC) Thursday took exception to the running of financial affairs of the state-owned Pakistan Television Corporation (PTVC) in the past and directed the Ministry of Information and Broadcasting to formulate a mechanism to avoid financial leakages in future.
The committee also sought the details of contractors and their relations with the PTV officials.
The sub-committee met here with Sheikh Rohail Asghar in the chair.
The committee examined the audit paras related to the Ministry of Information and Broadcasting for the year 2009-2010.
Audit officials told the committee that the PTV faced Rs65.272 million losses due to non-recovery of charges on account of provision of uplink facility.
The committee was told that the PTVC provided uplink facility to M/s Indus Entertainment (Pvt) Limited on the monthly rent of $32,00 from October 12, 2002 as per acceptance letter dated August 10, 2002 and the deal was subject to the signing of agreement by M/s Indus Entertainment (Pvt) Limited.
The PTVC sent a draft agreement on June 28, 2006 but the same was not signed by the party. However, the company continued to provide uplink facility without any agreement till April 30, 2007 despite default on payment. Resultantly, default amount piled up to $796,000 (Rs65.272 million).
The party paid 11 cheques for Rs10.861 million which were dishonored but no legal action was initiated.
The company management intimated to the Senate standing committee on June 28, 2006 that they were considering lodging an FIR against the party.
The sub-committee of the PAC directed an inquiry into the matter and sought a report within one month.
Examining another audit para, audit officials told the committee that due to undue favour to a production company, the PTV sustained a loss of Rs52.225 million.
The committee was told that the PTVC entered into an agreement with M/s Sports Star International (SSI) on October 21, 2002 for grant of licence to obtain PTVC programmes in its archives for telecasting and as per clause 3.2 of the agreement, the PTVC shall issue invoice of each calendar month in the first week of next month to SSI for payment within 30 days while clause 9.1 further provides that in case payment was not made on time, the PTVC will serve a notice for ceasing the supply of further programmes and if after 30 days of serving of notice, the payment was not received then further supply will be stopped within a period of 60days, failing which the PTVC shall terminate that agreement.
Audit officials told the committee that the PTV supplied programmes to SSI, but did not receive the agreed amount in installments as per schedule but the management continued to supply programmes to the second party which resulted in accumulation of outstanding dues to Rs52.225 million on the expiry of agreement in 2005.
The committee was told that in August 2007, the PTVC entered into another agreement with the SSI and purchased 30 television archive programme valuing Rs49.400 million from the SSI and the private production programme were purchased bythe then MD himself without involvement of various committees such as concept/idea evaluation committee, programme preview committee and price negotiation committee.
The committee was told that the PTVC adjusted its receivables of Rs52.553 million against the payable of Rs49.400 million; however, the management failed to intimate the revenue generated by televising the said programmes.
The committee was told that since these programmes had already been telecast on the Prime TV and ATV, these could not fetch much income resulting in undue favour of Rs52.225 million with the party.
The convener of the sub-committee, Sheikh Rohail Asghar, observed that the loot and plundered had destroyed the PTV. “The PTV was a national asset but it was looted,” he observed.
He directed Secretary Information Imran Gardezi to formulate such a mechanism for future that no one could dare loot an institution.