PAC orders probe into purchase of Rs62.51m defective bags

Passco irregularities under fire

ISLAMABAD: The Public Accounts Committee (PAC) Tuesday took a strong notice of alleged irregularities in Paasco by its former MD, who is a serving major general, worth Rs62.51 million in procurement of substandard polypropylene bags in violation of PPRA rules and directed the Ministry of National Food Security and Research to hold an inquiry and present its report to the committee in its next meeting.

It was revealed in the PAC meeting that former MD Passco, Major General Tauqeer Ahmed, in violation of PPRA rules, purchased around 3.36 million polypropylene bags which were substandard and in violation of Rule 8 of the PPRA, 2004 that caused a loss of Rs62.51 million to the national exchequer.

The PAC held its meeting Tuesday, presided over by its Chairman Syed Khursheed Shah in which the audit paras relating to Ministry of National Food Security and Research and Ministry of Inter-Provincial Coordination for the year 2013-014 were examined.

During the meeting, Passco officials took a stance that this issue may be sent to army under the Army Act but the PAC did not agree with their stance and directed for holding an inquiry headed by secretary food and submission of inquiry report to the committee within a time period of 15 days.

The Audit officials told the committee that during audit, it was revealed that an agreement for procurement of 3,360,000 polypropylene bags at the rate of Rs27.95 per bag with a total value of Rs93.91 million was executed by M/s Millennium Industries (Pvt) Ltd on March 14, 2013.  When the committee questioned from the MD Passco on whose order the scam was made, MD Khan Muhammad Khachi replied that he did not know the name of his predecessor but the department did not suffer any loss.

Senator Sherry Rehman observed that being MD, how is it possible that he did not know the name of his predecessor. It was told to the committee that Major General Tauqeer Ahmed was MD at that time who was replaced on alleged illegal appointments in Passco.

PAC member Sardar Ashiq Gopang asked the secretary food that he should not defend any wrong doing in the Passco. Chairman PAC Syed Khursheed Shah directed the secretary to hold the inquiry.

The secretary requested for inquiry by the additional secretary but the PAC rejected his plea and directed him to head the inquiry committee and submit report within 15-days.

Examining audit para relating to Ministry of Inter-Provincial Coordination, the audit officials informed the committee that Inter Board Committee of Chairmen (IBCC), a sub-ordinate department of the ministry, had not submitted Rs273 million in the official account and rather deposited it in the commercial banks against the rules.

Sherry Rehman questioned that who had taken the decision to deposit the money of IBCC in private banks. The chairman of Board IBCC told the committee that regional offices were open for facilitation of students under one-window operation and these are current accounts.

The committee asked whether internal audit was made on this issue on which the chief financial officer (CFO) of the Ministry told the committee that he was not signing authority and even in the ministries the CFO is considered as an outsider.  The PAC directed the ministry to open the account of IBCC in the National Bank of Pakistan and investigate the matter within 20 days.

Azam Swati expressed anger over the appointment of Dr Riaz-ud-Din in Pakistan Institute of Medical Sciences (PIMS) who was allegedly involved in misappropriation of Rs980 million during the tenure of previous government of the PPP.