PAC says subsidies at USC only for poor

Chairman Alam warns car manufacturers to send data for audit before the next meeting

ISLAMABAD:

The Public Accounts Committee has directed the Utility Stores Corporation of Pakistan to give targeted subsidies to poor people only.

“The subsidy allocated for Utility Stores is for the poor people only,” Chairman Noor Alam Khansaid while presiding over a meeting of PAC on Tuesday.

While giving a briefing, the Utility Stores Corporation officials said that their system was linked to the Benazir Income Support Programme and the National Database and Registration Authority.  “The system of Utility Stores has been computerised … now we are moving towards technology,” they said, adding that the declaration of assets would be taken from the employees.

On the condition of Utility Stores in Balochistan, Senator Ahmed Khan said that there were only rats there, and “no flour, lentils or sugar”.

The Utility Stores managing director said they were preparing one million ration bags for Sindh.

The PAC chairman said, “Visit Sindh and Balochistan so that you know the situation.”

On non-participation of car manufacturers in PAC meetings, Alam expressed his displeasure, directing all stakeholders including car manufacturers to attend the next meeting.

The PAC chairman said, “The car manufacturers are not providing documents to the Office of the Auditor General of Pakistan. What do these manufacturers want to show us by taking pictures with political leaders? We will request the government to allow the import of vehicles.”

Senator Ahmad Khan said, “Till import is not opened, they will have a monopoly.”

The AG Office officials said, “We were to receive data from 11 companies and they have not given us the complete data.”

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The PAC chairman warned the car manufacturers that if data was not given before the next meeting, “we will send your case to NAB”.

“Why do car manufacturers consider themselves above the law? The Constitution says that our meetings’ proceedings cannot be challenged in court … we can even issue arrest warrants.”

Alam said, “You are playing a game with the people of Pakistan on the pretext of dollars etc.”

The PAC has invited representatives of car manufacturers, Ministry of Commerce and the FBR chairman in the upcoming meeting. PAC also summoned top officials of SECP, State Bank and Competition Commission of Pakistan.

On the matter of privatisation of Pak-China Fertilizer Limited, officials said that it was privatised in 1992.

“Pak-China Fertilizer Limited sold 90%. The case of Pak China Fertilizer Limited went to arbitration court, in 1997 the decision came in our favour.”

They said 14% markup on outstanding amount and additional 10% markup on balance was agreed.

“The total principal amount is Rs18.8 million while the markup is Rs740 million and the markup on markup is Rs2 billion.”

In total, they said, this amount was Rs3 billion and 10% share was also owned by the government.

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The audit revealed that 40% of the money was taken and handed over to the plant party.

The Senate Standing Committee on Finance blocked its privatisation.

On the issue of appointments on fake degree in Furniture Pakistan, the FIA officials said that the inquiry had now started.

The PAC chairman directed to include the name of the person who made the appointments in the FIR and make recovery from him.

Alam gave one week’s time for the inquiry to be completed.

On the issue of 381 illegal appointments in the National Fertilizer Marketing Limited, the Ministry of Industries officials said that they were given a golden handshake in 2007 and in 2012, 417 people were rehired.

They said that these people were on contract for 10 years now. The PAC chairman directed to complete the inquiry in a month.

In the meeting, it was revealed that flour was withdrawn from the Utility Stores in Peshawar in the name of the PAC chairman.

An irked Alam said, “I did not ask anyone in your Peshawar zone to extract flour. Who extracted flour in my name? There should be an inquiry as the Utility Stores are for poor people.”

He directed the industries secretary to look thoroughly into the matter.

The PAC chairman also directed NAB to treat officials respectfully.