Forensic audit of state-owned enterprises to be conducted

KARACHI: The federal government has decided to conduct 10-year forensic audit of the state owned enterprises that are annually gathering Rs 500 bn losses, including PIA, Pakistan Railways, SNGPL, Pakistan Post, power companies of Quetta, Hyderabad, Lahore, Peshawar and Sukkur that are gathering huge deficits.

The prime minister was briefed that 33 out of 85 (SOEs) are running into billions of rupee deficit. Three out of the 33 companies alone are responsible for 85 percent losses, sources cited the PM being told. In the first step, 10-year forensic audit of PIA, Pakistan Railways, Sui Northern Gas Ltd, Peshawar Electric Supplying Company and Northern Power Generation Company would be conducted. This will be followed by that of Pakistan Post Office, power companies of Quetta, Hyderabad, Lahore and Sukkur. In the first phase, according to the sources, the federal cabinet has approved completing the forensic audit of state-owned enterprises and others by June 30.

In another development, the government has decided to revive the Pakistan Steels and for that a new company Pakistan Steel Mills Subsidiary company would be floated. This would be run by a seven-member Board of Directors (BOD). The prime minister, according to the sources, approved the seven members of the BOD. The entire assets of Pakistan Steels would be transferred to the new company by the next week. However, over Rs 550bn losses would remain in the books of the Pakistan Steel, thereby the Pakistan Steel Mills Subsidiary company would start with no liabilities. Amir Mumtaz would be the chairman of the Pakistan Steel Mills Subsidiary Company, the sources confirmed. The Ministry of Industries and Production has forwarded the formal summary for the federal cabinet’s approval to raise this company.