Zeeshan S.
SENIOR MEMBER
- Joined
- Dec 19, 2005
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PAC disappointed over the performance of KS&EW
ISLAMABAD: The Public Accounts Committee (PAC) on Thursday expressed its concern over the financial irregularities in Karachi Shipyard and Engineering Works limited (KS&EW) and net loss of 70.366 million during 2000-01 and asked the Ministry of Defence Production to take immediate step to improve the financial situation of the organization.
It also directed to highlight the individuals and groups who were responsible for the financial irregularities in KS&EW and to initiate action against the officials concerned for negligence.
The PAC met here at the Parliament House with Malik Allah Yar Khan, MNA, in the chair. The committee discussed the audit reports of the Ministry of Defence Production and its attached departments for 2000-01.
Secretary Defence Production Lt. Gen. (R) Shahid Tirmazi, DG KS&EW Admiral Rao Iftikhar and PAF officials attended the committee.
The committee was apprised that KS&EW has been given under the Ministry of Defence for two months ago and it had chalk out plan to improve the working of the organization.
It was told that KS&EW sustained net loss of Rs70.366 million during the year 2000-01 as against net loss of Rs.236.085 sustained during the previous years. Due to persistent losses on June 30, 2001 amounted to Rs 2,378.199 million which had eroded entire equity of Rs464.223 million and the company had negative equity of Rs.1913.978 million on that date. In prevailing circumstances, the company is unable to discharge its liabilities especially to Employees Provident Fund, which had accumulated to Rs493.683 million as on June 30, 2001. The current liabilities stood at rs1,668.488 million as against current assets of Rs.623.307 million exceeding by Rs1,045.181 million. The trade debtors during the year under review increased by 219 percent from Rs57.776 million as on June 30, 2000 to Rs184.481 million as on June 30, 2001. This included a sum of Rs36.643 million, which had been outstanding for more than three years.
While answering the query made by some members of the committee, DG KS&EW told the committee that KS&EW had hired the services of Advocate in order to recover its money from different organizations and companies.
On another audit para regarding avoidable expenditure of Rs3.611 million on account of mark up, the committee was told that KS&EW had delayed the retirement of import documents against 19 letters of credits and its major cause was poor performance.
The committee observed that the elements of negligence of officials and lack of latest equipment could not be ruled out.
On the objection of Audit pertaining to PAF Decision to revive the contract with M/s Zeshan Electronics, the committee was informed that the said company had awarded contract to provide 150 prototype radio sets which used controlling the Air traffic in June 1992 and DGMP made advanced payment of Rs4.5 million in June 1993. The first prototype, required to be delivered for the test/trial in June 1994, was delivered in August/September 1996 and the amount Rs4.5 million paid to them remained blocked with them. But after the lapse of many years, PAF required modern system and had contract with M/s ATCOP for the development of an airborne tactical radio trans-receiver. PAF recommended that instead of terminating the subject contract, M/s Zeshan Electronics readjust the advanced amount with 10 sets.
The committee accepted the ministryââ¬â¢s request to adjust the advance payment of Rs4.5 million against the contractually proportionate costs of stores, successfully delivered by the firm.
http://www.onlinenews.com.pk/details.php?id=103854
ISLAMABAD: The Public Accounts Committee (PAC) on Thursday expressed its concern over the financial irregularities in Karachi Shipyard and Engineering Works limited (KS&EW) and net loss of 70.366 million during 2000-01 and asked the Ministry of Defence Production to take immediate step to improve the financial situation of the organization.
It also directed to highlight the individuals and groups who were responsible for the financial irregularities in KS&EW and to initiate action against the officials concerned for negligence.
The PAC met here at the Parliament House with Malik Allah Yar Khan, MNA, in the chair. The committee discussed the audit reports of the Ministry of Defence Production and its attached departments for 2000-01.
Secretary Defence Production Lt. Gen. (R) Shahid Tirmazi, DG KS&EW Admiral Rao Iftikhar and PAF officials attended the committee.
The committee was apprised that KS&EW has been given under the Ministry of Defence for two months ago and it had chalk out plan to improve the working of the organization.
It was told that KS&EW sustained net loss of Rs70.366 million during the year 2000-01 as against net loss of Rs.236.085 sustained during the previous years. Due to persistent losses on June 30, 2001 amounted to Rs 2,378.199 million which had eroded entire equity of Rs464.223 million and the company had negative equity of Rs.1913.978 million on that date. In prevailing circumstances, the company is unable to discharge its liabilities especially to Employees Provident Fund, which had accumulated to Rs493.683 million as on June 30, 2001. The current liabilities stood at rs1,668.488 million as against current assets of Rs.623.307 million exceeding by Rs1,045.181 million. The trade debtors during the year under review increased by 219 percent from Rs57.776 million as on June 30, 2000 to Rs184.481 million as on June 30, 2001. This included a sum of Rs36.643 million, which had been outstanding for more than three years.
While answering the query made by some members of the committee, DG KS&EW told the committee that KS&EW had hired the services of Advocate in order to recover its money from different organizations and companies.
On another audit para regarding avoidable expenditure of Rs3.611 million on account of mark up, the committee was told that KS&EW had delayed the retirement of import documents against 19 letters of credits and its major cause was poor performance.
The committee observed that the elements of negligence of officials and lack of latest equipment could not be ruled out.
On the objection of Audit pertaining to PAF Decision to revive the contract with M/s Zeshan Electronics, the committee was informed that the said company had awarded contract to provide 150 prototype radio sets which used controlling the Air traffic in June 1992 and DGMP made advanced payment of Rs4.5 million in June 1993. The first prototype, required to be delivered for the test/trial in June 1994, was delivered in August/September 1996 and the amount Rs4.5 million paid to them remained blocked with them. But after the lapse of many years, PAF required modern system and had contract with M/s ATCOP for the development of an airborne tactical radio trans-receiver. PAF recommended that instead of terminating the subject contract, M/s Zeshan Electronics readjust the advanced amount with 10 sets.
The committee accepted the ministryââ¬â¢s request to adjust the advance payment of Rs4.5 million against the contractually proportionate costs of stores, successfully delivered by the firm.
http://www.onlinenews.com.pk/details.php?id=103854
