Close loss-making enterprises, PAC tells industries ministry
* Orders Utility Stores MD to submit performance report
ISLAMABAD: The Public Accounts Committee (PAC) directed the Ministry of Industries and Production on Wednesday to immediately wind-up all enterprises that were sustaining losses or were non-operational to avoid further loss to the national exchequer.
The PAC met to discuss the audit report on public sector enterprises for 2000-2001, according to a press release. The meeting was chaired by Malik Allah Yar Khan.
While discussing various audit reports on Pakistan Automobile Corporation, Pakistan Motor Car Company, Republic Motors, Sindh Engineering (Pvt) Ltd and State Cement Corporation, PAC observed that the national exchequer could not bear any further losses caused by these entities. The committee declared that production did not fall into the government’s mandate therefore all such enterprises should either be wound up or government holdings would be disinvested or liquidated.
The PAC also took serious note of the imprudent investment of over Rs 14.20 million by Sindh Engineering into an OKA car project. The committee was informed that Sindh Engineering spent Rs 14.26 million on conducting initial studies and acquiring land for the Russian OKA car project. PAC directed the secretary of industries to conduct an inquiry into the affair and identify those responsible so that they could be punished.
The committee also discussed the performance of Utility Stores Corporation (USC) for 2000-2001. It decided that USC had been mismanaged in the stated period and, as a result, had accumulated losses of over Rs 1.36 billion.
PAC directed the managing director of USC to adopt an aggressive marketing strategy and cut operational losses so it could be converted into a viable business concern. The managing director informed the committee that by laying off redundant employees, closing unviable outlets and adopting new business strategies, USC had now become self-reliant. The PAC asked him to present a comprehensive report to the committee on the performance of USC.
On the failure of the USC to recover advance payments and mark-up from various sugar mills because of defective terms of agreement, the PAC directed secretary industries to submit a detailed report to the committee regarding the present state of recoveries. The failure to recover advance payments has caused a loss of Rs 19.2 million.
The PAC meeting was attended by MNAs Col (r) Ghulam Rasool Shai, Qurab Ali Shah, Liaquat Baloch, Asiya Azeem, Abdul Ghafoor Haideri, Chaudhry Nisar Ali Khan, Safdar Shakir, Riaz Fatyana, Maj (r) Tanvir Hussain, Hafiz Hussain Ahmad, auditor general of Pakistan, secretary industries and other officers of the concerned departments.