ISLAMABAD: The Public Accounts Committee (PAC) may like to ask the management to hold an inquiry and fix responsibility on non-recovery of loan worth Rs 78.3 million from the PG&JDC.
During the audit of the Pakistan Industrial Development Corporation (PIDC), Karachi for the year 2018-19, it was observed that the management had provided interest-free loan of Rs 78.3 million to Pakistan Gems and Jewellery Development Company (PG&JDC), which was facing huge losses over the years and it failed to pay back the amount of Rs 78.3 million and the chances of such recovery are becoming remote with the passage of time. The audit was of the view that the giving of loan to PG&JDC, which was running in losses was not justified as making recovery from it was apparently not feasible.
The Audit report says Rule 5 of Public Sector Companies (Corporate Governance) Rules, 2013, states that Board shall exercise its power and carry out fiduciary duties with a sense of objective judgement and independence in the best interest of the company.
The management of the PIDC; however, of the view that the PG&JDC requested the PIDC on January 3, 2013, July 1, 2014, and January 6, 2015, for interest-free loan, so that it can manage its operation effectively as the funds with them had exhausted.
The PIDC placed PG&JDC request before the board in board meetings.
With the approval of the BoD, PIDC issued loan of Rs 78.3 million.
Copyright Business Recorder, 2021