Wednesday, August 13th, 2025
Home »Business and Economy » Pakistan » PAC concerned over Rs 573.927 million HEC losses

  • News Desk
  • Feb 19th, 2005
  • Comments Off on PAC concerned over Rs 573.927 million HEC losses
The Public Accounts Committee (PAC) has directed the ministry of industries and production to streamline administrative control mechanism of all its departments and corporations by establishing strict monitoring and evaluation system. The PAC, which met here on Friday with MNA Malik Allah Yar Khan in the chair, continued its discussion on the audit report on the Public Sector Enterprises for the year 2000-01.

The committee observed that rules and regulations were not being followed in letter and spirit in public sector enterprises being operated under the ministry of industries and production and directed to take corrective measures.

Discussing the auditor's objection of grant of Rs 55.744 million bonus to the employees by the Pak-Arab Fertilisers Limited in violation of rules, the PAC observed that "performance evaluation scheme" introduced by the government should not be misused.

It also directed the ministry to make sure that bonuses should only be given to employees of profit-earning entities after following proper procedure in future.

The committee directed the ministry of industries secretary to conduct an inquiry and identify persons responsible for flouting of rules.

The PAC expressed its concerns on the state of affairs at Heavy Electrical Complex (HEC), Hattar.

The committee was informed that accumulated losses of the company have risen to Rs 573.927 million as on June 30, 2001, eroding all its capital of Rs 413.196 million.

The project was installed at a cost of Rs 1110.853 million as a result of the agreement with Wapda for utilisation of 70 percent manufacturing capacity of the complex. However, Wapda purchased only 11 transformers till 2001.

The meeting directed industries ministry to bring that into the notice of the government so that it could bound Wapda to oblige its contractual obligations.

The PAC also asked the ministry to carry out restructuring at the HEC so that it could be converted into a viable entity.

The PAC observed that the HEC paid excessive freight to transporters and procedural formalities were also not fulfilled. It warned the HEC not to compromise on procedures and transparency.

The PAC regularised various audit objections on accepting replies of concerned departments subject to verification by the audit.

MNAs Syed Qurban Ali Shah, Riaz Fatyana, Safdar Shakir, Lieutenant Colonel Ghulam Rasool Sahi (Retd), Liaquat Baloch, Chaudhry Qamaruz Zaman Kaira, Chaudhry Nisar Ali Khan and Porf. Asiya Azeem attended the meeting.

Copyright Business Recorder, 2005


the author

Top
Close
Close