PAC body examines audit paras of communication ministry

ISLAMABAD: The revelation made before the Subcommittee of the Public Accounts Committee (PAC) on Thursday that with the change in the scope of the motorway projects caused a loss of over Rs18 billion and in the delay of the execution of the project caused a loss of Rs14 billion while the Ministry of Communication also failed to recover penalties from the contractors in 32 different projects that caused a loss of over Rs10 billion to the national exchequer.

The meeting of the PAC Subcommittee was held on Thursday with the chair of its Convener, Raja Riaz, in which the audit paras relating to the Ministry of Communication and its attached departments for the financial year 2017-18 were examined.

The officials of the Ministry of Communication told the PAC Subcommittee that the penalties of billions of rupees would be recovered from the contractors who were failed to complete the work on time.

The officials of the Ministry of Communication also assured the Subcommittee that the penalties would be imposed on the contractors in the delay of three Motorway projects that include Multan-Sukkur, Havelian-Thakot and Lahore-Abdul Hakeem Motorways projects.

Ministry of Communication Secretary Jawad Rafiq Malik told the Subcommittee that delay caused in the completion of the projects due to delay in the release of funds, but the penalties were imposed if the delay in the projects was due to contractors. “If the contractor did not pay the penalties then their bank guarantee could also be confiscated,” he told the committee.

The Audit officials told the Subcommittee that the scope of Multan-Sukkur, Havelian-Thakot and Lahore-Abdul Hakeem Motorway projects were changed which caused a loss of over Rs18 billion while the penalties of Rs14 billion on the contractors of Multan-Sukkur for not doing any work and delay in completion of work, and the NHA has still to recover penalties over Rs10 billion in 32 projects from the contractors.

The Secretary, Ministry of Communication, told the Subcommittee that the claims of recovery has already been sent to those contractors from whom the recoveries to be made.

He told the committee that some of the projects were delayed due to non-release of the funds from the government that include D I Khan-Hakla Motorway project for which the federal government did not release the funds for the last eight months but now the Planning and Development Division has released the funds for this project.

Convener of the PAC Subcommittee Raja Riaz directed to send back the audit paras to the Departmental Accounting Committee for further deliberations on it.

Examining the another audit para, the Audit officials told the committee that the contractors of the Multan-Sukkur motorway allowed to import machinery of Rs19 billion, but the NHA did not share the record with the audit. Secretary Ministry of Communication told the committee that the record would be shared with the Audit within six-week time.

The Audit officials raised the objection on cut of the cash development credit from the funds released from the PSDP of the NHA.

The secretary told the committee that the ministry has taken this matter to the ECC of the cabinet after the Audit pointed out and on which the ECC has formed the committee with the chair of Minister for Planning and Development, which has completed its recommendation, and it would be presented before the ECC for approval.

He said as per recommendation of the committee, the federal government will provide cash development credit to the projects proposed by the NHA and for the other projects of the NHA it would also provide deposit work or grant. Examining the audit paras related to the Pakistan Post, the audit officials told the committee that heft of over Rs50 million was pointed out.

The Secretary told the committee that Rs25 million has been recovered and those officials who were found guilty were forced to retire.

The audit officials told the committee that the Pakistan Post has awarded the contract for its IPS, EMTTS and other mobile deliveries to the M/s 360 Technologies of Rs80 million illegally and awarded the contract for the centralised software solution (CSS) to the M/s Telconet of Rs70 million illegally.

The Secretary, Ministry of Communication, told the committee that the inquiry against both the companies has been completed, and the notices also served to them, and an FIR also be registered against both the companies.

The PAC Subcommittee directed to submit the compliance report to the committee within one month of time.

While examining another para, the audit officials raised the objection on the welfare fund of the National Highway and motorway Police. IG NHH & Motorway police Kaleem Imam told the committee that there are irregularities in the welfare fund.