"The production does not fall within the mandate of the government; therefore, all such enterprises should either be wound up or liquidated, to avoid further loss," the committee unanimously observed.
The PAC also took serious note of the imprudent investment of Rs 14.20 million by Sindh Engineering on OKA Car project. The committee was informed that Sindh Engineering spent Rs 14.263 million on conducting initial studies and acquiring land for Russian OKA car project.
The PAC directed the Secretary, Ministry of Industries to conduct an inquiry in the whole affair and fix responsibility so that all responsible are taken to task.
The PAC also discussed the working of Utility Stores Corporation (USC) for the year 2000-01.
The Committee was of the view that during the period, USC had been subjected to bad governance, financial mismanagement and imprudent business strategies due to which its accumulated losses reached Rs 1.354 billion, making it a negative worth company.
The PAC directed the managing director, USC, to adopt an aggressive marketing strategy and curtail operational losses of the corporation so that it could be converted into a viable business concern.
On two other audit objections pertaining to loss of Rs 19.20 million due to non-recovery of advance payment from sugar mills by USC, the PAC directed Secretary, Ministry of Industries, to submit a detailed report to the committee regarding present state of recoveries.