The Public Accounts Committee of Parliament has directed the Trading Corporation to take immediate steps to pay billions of rupees owed to the federal government and the provinces. The committee has been directed to investigate the issues, including immediate payment to hospitals under the Health Facilitation Program of the State Life Insurance Corporation.
The meeting of the committee was held at the Parliament House on Wednesday under the chairmanship of Chairman Junaid Akbar. The meeting was attended by the committee members, the Auditor General of Pakistan and the Secretary Commerce, along with other officials. The audit officials informed the meeting that TCP has to collect more than Rs 89.72 billion from various institutions, to which the Secretary Commerce said that this is an arrears of three years, and this institution carries out imports and exports on the instructions of the federal government.
He said that for this purpose, this institution takes loans from banks. He said that at present, TCP has an arrears of Rs 311 billion, of which Rs 217 billion is outstanding in the form of interest. He said that so far Rs 17 billion and Rs 72 billion have been paid. The committee member Senator Shibli Faraz said that there are flaws in the method being adopted and it needs to be changed. He said that currently utility stores are indebted to 103 billion, National Fertilizer 103 billion, and POSCO 6 billion, while other institutions including provinces are also in heavy debt.
Committee member Senator Afnanullah Khan said that this is becoming another circular debt. On this occasion, officials of the Ministry of Finance said that we are ready to pay the arrears owed by the federal government, while matters are yet to be settled with the provinces. The committee directed to inform about the progress within a month. Officials said that wheat was purchased from TCP three times in 2022, on which more than 700 million rupees were taken as commission. The Secretary of Commerce said that this is not correct. TCP has charged .75 percent.
The committee has taken the matter up again for DA. Audit officials said that TCP auctioned six rice plants coming from Germany and Japan without making an estimate, on which the Commerce Secretary said that no estimate was made. However, about 15 firms participated in the auction. An inquiry was conducted into the matter, in which it was stated that this auction was correct. Committee member Senator Shibli Faraz said that whatever happened was wrong. The committee sent the matter back to DAC. Audit officials said that TCP awarded the contract of consultancy services to the second-ranked firm. The Commerce Secretary said that it was stated in DAC that the conditions of the first-ranked firm were not acceptable. The committee dismissed the matter.
Audit officials said that a deputy manager was appointed in TCP on deputation, on which the Commerce Secretary said that the deputy manager was placed on deputation in grade 17. The committee settled the matter. Audit officials said that Pakistan Reinsurance Company violated the rules in the contract of security guards. The contract was awarded to Frontier Constabulary Security Services, on which the Commerce Secretary said that the company to which the contract was awarded was a public limited company and the contract was awarded based on four conditions.
Committee member Hussain Tariq questioned why the clause under which the contract was awarded was needed. Committee member Senator Afnanullah Khan said that action should be taken against whoever violated it. The committee directed to submit a report within a month. The officials said that the State Life Corporation has to receive more than Rs 69.93 billion from the federal government, Punjab and Khyber Pakhtunkhwa governments under the Health Facilitation Program, on which the CEO of the State Life Insurance Corporation said that Rs 63 billion has been received and this program was for Khyber Pakhtunkhwa and Punjab. The chairman of the committee inquired why the hospitals have not been paid, on which the CEO said that there are about 1,000 hospitals and the payment is made within 30 days after receiving the claim.
He said that so far, out of Rs 24 billion, Rs 21 billion has been paid, and Rs 3 billion has been paid. Committee member Shazia Marri said that there are many cases of delay in payment to hospitals, to which the CEO said that due to fraud of some hospitals, we have not made payments. the committee directed to investigate the matter within a month.
The authorities said that three plots of the corporation have been occupied and the matters are in the courts, to which the CEO said that housing societies have been built on two plots in Punjab and when we got them, they were already occupied. In this regard, we have also written to the Punjab government, while 17 acres of land have been returned with the efforts of the Sindh government. She said that a Christian cemetery has been built on a land in Lahore.
Committee member Shazia Marri said that alternative land was sought, to which the authorities said that they have been trying for alternative land for the last three years, to which the committee directed to provide alternative land. The authorities said that two officers in the institution were re-employed within a month and the laws were violated, to which the CEO said that the corporation is an autonomous institution in which two people were re-employed on the recommendation of the board. She said that in the same
On the first such objection, the Law Ministry had said that the board had the authority. The committee summoned the Law Secretary and referred the matter to the Establishment Division for further guidance. Officials said that the insurance amount has not been collected in Sukkur and Multan zones, and no verification has been done yet, to which the CEO replied: The committee directed to investigate the matter, stating that the money has been received from Sukkur while recovery is being done from Multan.
