PAC seeks 50-year KPT investment, profit record

ISLAMABAD: The Public Accounts Committee (PAC) on Thursday sought the record of investment made by the Karachi Port Trust in last 50 years and detail of profit earned through the investments within next 15-days. This was decided after the revelation made before the committee that the KPT made an investment in different commercial banks without finalising the financial statements after financial year 2008-09.

The Public Accounts Committee held its meeting on Thursday with the chair of its Chairman Syed Khursheed Shah in which the audit paras relating to the Ministry of Maritime Affairs for the year 2016-17 were examined.

The Audit officials told the committee that the KPT management has not yet finalised the financial statement after financial year 2008-09; however, the investment of over Rs45 billion was made in the different commercial banks in the successive years since 2008.

The audit observed that the investment made with the national savings was in violation of the government instructions, and the investment made as deposits in bank accounts is not covered under the KPT Act.

The Audit officials were of the view that the KPT management has violated the provision of KPT Act while making investment. The KPT management replied that the Finance Division vide OM No F.4(1)/2002 BR! Dated 02.07-2003 has communicated the policy for making investment, KPT strictly follow these guide lines before making any investment. The KPT management told the committee that under the Finance Ministry policy, the investment be made in the Banks with A-rating,

The PAC member questioned that it should be tell why the financial statement was not being finalised. The KPT chairman replied that the amount of Rs45 billion was surplus in the budget, so it was deposited in the banks with the purpose of investment. PAC member Syed Naveed Qamar said that the question was that why the financial statement was not finalised. Dr Azra Fazal observed that it was strange that the internal audit of the department was also not done.

Auditor General of Pakistan Javed Jehangir said that the chief financial officer was given the task to conduct the internal audit of the department, and it was depended on ministries whether they conduct the internal audit of their departments or not.

When Mehmood Khan Achackzai asked the names of the member of the FinanceCommittee of the KPT, which were suggested for the investment, but the officials of the KPT were avoiding giving the names of the committee members.

When members expressed their annoyance over not being told the names, its officials said that the committee comprised of general manager Finance, chief accounts officer, manager finance and chief financial officer for making investment of Rs45 billion.

The KPT chairman said the finance committee recommended its proposal to the KPT Board, which makes decision. During the examination of the Audit paras, the matter of irregular payment of allowances worth Rs110.304 million to the officers of the KP in education allowance, harbour allowance and utility allowances was also come under scrutiny as the audit officials objected that the management of the KPT had not finalised the financial rules and allowances paid to the KPT management were over and above the allowances to federal government employees.

The audit officer was the view that in the absence of approved financial rules, the payment of allowances over and above the allowances admissible to the federal government employees was irregular and unauthorised.

The KPT chairman claimed that the boards of the semi-government departments have the authority to make their decision. PAC Chairman Syed Khursheed Shah said that on one hand, the KPT chairman was saying that the rules were under process while one of the official claims that the financial rules were approved, so who was right.

Then the official said an amendment was made to the rules which were being in process. The PAC chairman directed the KPT to forward the copies of the financial rules to the committee and auditor general of Pakistan by Friday (today).