PTA to recover billions of rupees from mobile phone companies, telcos

ISLAMABAD: The Frequency Allocation Board (FAB) Thursday told the Public Accounts Committee (PAC) that it had no facility to block any usage of illegal frequency but the security and intelligence agencies have the required capacity to block any frequency used in broadcasting illegal radio stations.

“That was reason that the security and intelligence agencies blocked the frequency that was used for broadcasting illegal radio station by Mullah Fazlullah in Swat before the Swat operation,” said an official of the FAB in the meeting of the PAC that was chaired by Sardar Aashiq Gopang, who presided the meeting in the absence of chairman Syed Khursheed Shah. Audit paras of the Cabinet Division with regard to Pakistan Telecommunication Authority (PTA) for the year 2013-14 were examined during the meeting.

The response came from the official of the FAB to a query of the PAC member Dr Azra Fazal, who asked why the PTA did not block the frequency to broadcast the illegal radio by Mullah Fazalullah in Swat. The official told the committee that the board only cancels the licence of those who illegally use frequency and impose heavy penalties but do not have the ability to block the frequencies.

Audit officials told the PAC that the PTA had to recover Rs41.708 billion from different mobile phone companies and telecom companies out of which a number of companies had winded up their business and are not traceable now. The meeting was told that Rs34 billion were recoverable from seven operators and M/s Instaphone was the major defaulter owing Rs22 billion whereas the remaining amount of Rs7 billion was recoverable from 175 operators. Giving details, the audit officials told the PAC that M/s Instaphone owes Rs22.13 billion, M/s telecard 3.25 billion M/s Worldcall Telecom Rs2.8 billion M/s PTCL Rs1.71 billion, M/s Dencom Pakistan Rs1.65 billion M/s DV Com Data Rs1.59 billion and M/s Great Bear Rs714.45 million.

The management of the PTA replied that the major portion of outstanding dues against M/s Instaphone was subjudice in the court and the case was further adjourned on December 8, 2015, M/s Telecard has deposited Rs314.445 million in Escrow account till date as per orders of the Ministry of Information Technology and cases is in the court, M/s Worldcall has deposited Rs333.05 million under Escrow payment account and the matter is still subjudice, PTCL paid an amount of Rs1.87 billion as confirmed by the Ministry of Information Technology vide letter dated March 16, 2010, however since this amount was paid to the Ministry of Information Technology and PTA considered it as a liability upto 2005 but the matter became subjudice and the licensee prayed that the excess paid for 2004 and 2005 may be adjusted against future liability.

The management of the PTA told the PAC that M/s Dancom, recovery petition has been filed and the PTA takes up the matter with tehsildar for legal proceedings, M/s DV Com Data, the lincesee has paid principal amount of Rs1.42 billion on April 28, 2015, however, late payment is subjudice and M/s Great Bear, International, recovery petition for Rs1.083 billion was filed dated February 22, 2014.

The audit officials told the committee that the mobile operator companies owe billions of rupees of PTA and major defaulter is Instaphone which owes Rs22 billion but the company has winded up the business in Pakistan. Audit officials further told the committee that the PTA even did not have the profiles of the mobile operator companies.

Audit officials said telecom operators has deposited the amount of the USF amounting to Rs8billion from 2007 to 2009 and research and development contributions in the Ministry of Information Technology instead of the PTA and this amount remained in accounts of the Ministry of Information technology for two years, which is violation of law.  The PAC sought the details of the funds of the USF from 1996 up till the year 2016.

Dr Azra Fazal observed that there is difference of Rs35 billion in the funds of the USF and PTA figure. The PTA chairman told the committee that the telecom companies have deposited Rs31 billion in the USF. It was also revealed that ex-Director General of the PTA Imran Zuberi was brought back into the country through Interpol who fled the country after alleged fraud of Rs80 million but the Lahore High Court granted him a bail.