State Life makes ‘bad investments’ of Rs300m

Management asked to submit complete report in a month.

ISLAMABAD:

Expressing dissatisfaction with investments of more than Rs300 million by the State Life Insurance Corporation (SLIC) in various companies, the Special Committee of the Public Accounts Committee (PAC) on Monday directed its management to submit a complete report in this regard within a month.

The committee also directed the Ministry of Information and Broadcasting and its attached departments to hold meetings to resolve pending matters relating to their respective organisations.

The committee, which met under the chairmanship of Zahid Hamid, reviewed audit reports of the ministries of commerce and information and broadcasting and their attached departments for the year 2003-04.

The committee was informed that SLIC made an equity investment of Rs200 million in Chakwal Cement Company in 1995. However, the company defaulted in payment of return at the rate of 16 per cent per annum to SLIC.

The committee was also informed that SLIC suffered a loss of Rs116.21 million due to bad investment in three companies, including Pakistan Emerging Venture, State Asset Management Company and Schon Refinery.

Hamid directed the ministry concerned to submit a comprehensive report in this regard to PAC. The committee also issued a directive to pursue the cases in court and make efforts to settle them within three months.

Published in The Express Tribune, July 19^th, 2011.