ISLAMABAD:
A subcommittee of the Public Accounts Committee (PAC) on Thursday reviewed multiple audit reports of the Defence Production Division, raising concerns over fake bank guarantees, uncollected dues and irregular appointments.
The panel, chaired by Naveed Qamar, examined audit reports for fiscal years 2011-12, 2012-13, 2014-15, and 2021-22.
The auditors revealed that M/s Pak Turk had submitted fake bank guarantees while securing contracts for the procurement of pulses and Basmati rice. The Defence Production Division officials said the company has since been blacklisted and the case is under trial.
The PAC members questioned why the bank guarantees had not been verified at the time of submission and directed that the Federal Investigation Agency (FIA) be included in the probe.
An audit report also pointed out that PAC Kamra failed to recover guarantees worth Rs26.9 million, $2.5 million, €2.6 million and €870,000 from various contractors.
The defence production officials confirmed that out of 295 bank guarantees, 112 have so far been collected. The committee later settled the audit para.
The subcommittee also discussed Karachi Shipyard’s decision to park Rs2.34 billion in commercial banks. Calling it a decade-old issue, Qamar said the matter should now be regularised through the finance ministry.
The auditors further highlighted that Karachi Shipyard had not recovered Rs550 million in dues from different clients. The committee subsequently settled the objection.
Another audit objection related to recruitments without advertisement at Karachi Shipyard was also taken up.
The officials explained that emergency hiring was carried out to begin work on the Hangor submarine project, while Chinese engineers working on-site required immediate medical support. A consultant doctor was therefore elevated as DGM Medical. The PAC later disposed of the para.
