The recovery cases of Investment Corporation of Pakistan (ICP), Industrial Development Bank of Pakistan (IDBP), House Building Finance Corporation (HBFC) and Equity Participation Fund (EPF) were discussed in the meeting. Naveed Qamar chaired the meeting.
A plot had been taken by the Investment Corporation of Pakistan (ICP) on November 30, 1992 from Pakistan Railways against a payment of Rs 60.255 million. Pakistan Railways did not mutate the land or refund the amount. The committee directed the Ministry of Finance to resolve the issue amicably.
The committee was also apprised that three recovery cases of the corporation are in court of law. The audit has identified that Rs 12.8 million of ICP is outstanding against M/s Taj Paper Board Mills; Rs 6.5 million is outstanding against M/s Morgah Valley Limited and Rs 1.7 million is recoverable from former managing director of ICP.
In Industrial Development Bank of Pakistan, Hyderabad Branch certain financial facilities were extended to M/s Al-Ameen Textile Mills on July 16, 1973 amounting to Rs 13.7 million for the establishment of a textile unit at Kotri. Due to persistent default in repayment of bank dues, the IDBP filed a suit against the company. The assets of the project were auctioned for Rs 14.8 million against the total outstanding amount of Rs 145.4 million as on May 31, 2001 and IDBP received its share of Rs 11 million from sale proceeds. The chances of further recoveries seem remote as the project had already been sold out in 1997 and the bank failed to locate the personal properties of directors despite a lapse of seven years.
The committee expressed its utter displeasure at the affairs of House Building Finance Corporation (Sargodha branch). The corporation disbursed Rs 456,759 against four accounts on the basis of fake documents and false site inspection reports. The fraud was detected on July 14, 2002. A disciplinary action was initiated by the HBFC management and the accused officer was charge-sheeted. In the meantime, the officer attained the age of superannuation on November 29, 2002 and retired from the corporation's service with all pensionary benefits. The case has been pending with FIA.
In another case, HBFC (zonal office) Sukkur sanctioned and disbursed an amount of Rs 16.7 million in 349 cases during 1988-89. No recovery was made, resulting in accumulation of outstanding amount to Rs 32 million up to June 1999. The management informed the committee that one junior official was dismissed and an amount of Rs 22 million is still outstanding.
In another case, Equity Participation Fund (EPF) sanctioned an equity support of Rs 750,000 and Rs 1 million to M/s Aashi Marbale Company and M/s Punjab In-Trays (Pvt) Limited on June 22, 1981 and April 9, 1985, respectively, for setting up a marble processing unit at Industrial Estate Haripur Hazara and molded a pulp egg trays manufacturing unit at Sheikhupura. The borrowers defaulted in payment of Fund's dues and their personal properties are untraceable.