Commerce depts owe TCP Rs311bn, PAC told

ISLAMABAD: Chairman Public Accounts Committee Junaid Akbar Khan expelled the representative of the Ministry of Law from the committee meeting for not coming into the meeting fully prepared and summoned the Secretary Law and Justice in the next meeting.

Chairman PAC Junaid Akbar Khan said that the representative of the Ministry of Law and Justice came unprepared in the meeting after they repeatedly asked the officials to come fully prepared. The Public Accounts Committee meeting was chaired by Junaid Akbar Khan, which examined the audit reports of the Ministry of Commerce and its attached departments, including State Life Insurance and the Trade Development Authority of Pakistan.

It has been revealed during the Public Accounts Committee meeting that various departments of the commerce ministry, including the Utility Stores Corporation and National Fertilizer Company, are defaulters of Rs311 billion of the Trading Corporation of Pakistan (TCP). The audit objection also cited an interest of Rs89.72million on the TCP within three years.

The Utility Store Trade Corporation, he said, has a default of Rs103 billion, Pakistan National Fertilizer of Rs123 billion, PASSCO of Rs6 billion. A meeting was held by the Finance Secretary on December 1, 2023 over the issue but it remained indecisive.

The commerce secretary said that TCP had to collect Rs93 billion in principal amount and Rs218 billion in interest from the institutions for importing various commodities. Besides Utility Stores Corporation, National Fertilizer Company, PASSCO all the four provincial food departments are also TCP defaulters. They have to pay interest on non-payment, he said. Chairman PAC Junaid Akbar Khan directed the Finance Ministry and the Commerce Ministry to resolve this issue within a month and submit a report to the committee. The PAC moved on to review the audit objection regarding illegal and unjustified two percent commission charged by the Trading Corporation of Pakistan on the import of wheat. The PAC was told that the approved rate of commission was 0.75 percent. The additional commission of 1.25 percent caused a loss of Rs703.7 million. The commission was charged in violation of the ECC decision.

The PAC reviewed the sale of rice mill plants without a market survey in 2023-24 which led to a loss of Rs18.3 million. The commerce secretary said an inquiry was conducted and the sale was found to be in order. The inquiry commiittee established that since the plants were established back in 1976, their price was justified. However he corrected the impression that the machinery is still operational and said new machinery was bought as a replacement. The committee directed to re-conduct Departmental Accoutability Committee on the audit para of the sale of plants.

The PAC was also told encroachments on State Life Insurance plots in Lahore have been turned into graveyards. A State Life representative told the PAC two plots in Lahore and one plot in Malir Karachi were encroached back in 1976.During review of another audit para regarding illegal appointments in State Life, the PAC referred the audit of illegal appointments to the Establishment Division. The PAC was told that a loss of Rs27.9million was caused by the illegal appointments.