Islamabad:
A subcommittee of the Public Accounts Committee (PAC) reviewed multiple audit reports of the Defense Production Division, raising concerns about false bank guarantees, non -collected fees and irregular appointments.
The panel, chaired by Naveed Qamar, examined the audit reports for fiscal years 2011-12, 2012-13, 2014-15 and 2021-22.
The auditors revealed that M/S Pak Turk had presented false bank guarantees while ensuring contracts for the acquisition of legumes and basmati rice. The officials of the Defense Production Division said the company has been on the blacklist and that the case is in trial.
PAC members questioned why bank guarantees had not been verified at the time of presentation and ordered that the Federal Research Agency (FIA) be included in the investigation.
An audit report also indicated that Pac Kamra did not recover guarantees worth RS26.9 million, $ 2.5 million, € 2.6 million and € 870,000 of several contractors.
Defense production officials confirmed that of 295 bank guarantees, so far 112 have been collected. The Committee then resolved the Audit.
The subcommittee also discussed the decision of Karachi Shipyard to park RS2.34 billion in commercial banks. When calling it a problem of a decade, qamar said the matter should now be regularized through the Ministry of Finance.
The auditors also stressed that the Karachi shipyard had not recovered RS550 million in installments of different clients. The committee subsequently resolved the objection.
Another audit objection related to recruitments without advertising was also made in the Karachi shipyard.
The officials explained that the emergency hiring was carried out to start working on the Hangor’s submarine project, while Chinese engineers who work in the place required immediate medical support. Therefore, a consulting doctor was elevated as DGM Medical. The PAC then eliminated the para.
