Free ride: Illegal use of frequencies goes unnoticed for years

Auditor general looks at administrative and financial irregularities in telecommunications sector

ISLAMABAD:
In its report on the operations of the telecommunications sector, the Auditor General of Pakistan pointed out massive financial and administrative irregularities by the Pakistan Telecommunication Authority (PTA) and various telecommunication authorities during 2013-14.

They are accused of regularising daily wage workers and awarding cash prizes and incentives to employees without authorisation. The report mentions that telecommunications authorities also issued inadmissible proficiency incentives to 186 officers on Eidul Azha.

The report accuses the PTA of negligence. It says that the Frequency Allocation Board (FAB) sent the PTA monitoring reports on illegal use of frequencies, asking it to take legal action against those responsible. The PTA did not take timely action and issued general letters a year after it was informed. There was no legal action taken.

The report suggests that the amount of loss incurred due to illegal use of frequencies be ascertained and the operators and relevant agencies be asked to pay the amount to the government in two months time. It suggests fixing responsibility of extending undue favour and initiating action against officials  concerned.


The report mentions that since 1991, the Water and Power Development Authority used 17 frequency spots without paying the fee for its licence. In April 2009, the PTA sent Wapda a notice and gave it 30 days to stop the unauthorised use of frequencies. Wapda did not comply with the order.

In May 2010, the PTA told FAB to take action against Wapda and the National Transmission and Dispatch Company for illegal use of frequencies. The FAB finally suspended the frequency spectrum in 2011. The delay of 20 years in taking action had caused “colossal loss of state revenue”.

The FAB, a sister organisation of PTA established in 1996, looks after PTA’s wireless operations and investigates all complaints regarding interference of frequencies. The body is also authorised to take action against defaulters. The auditor observed in the report that the FAB, formed under the Pakistan Telecommunications (Reorganisation) Act 1996, had not yet developed functional regulations despite a lapse of 17 years. This was in violation of Section 43(7) of the Act, overseeing exercise of powers and business.

The report said that while the FAB admitted there was great loss of revenue due to illegal use of frequencies, it conveniently shifted the responsibility of taking remedial action onto the PTA and Pemra.

Published in The Express Tribune, November 3rd, 2014.
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