Deposits as advance booking: AGP, FBR asked to audit accounts of auto manufacturers

ISLAMABAD: A parliamentary panel on Wednesday tasked the Auditor General of Pakistan (AGP) and the Federal Board of Revenue (FBR) to audit the accounts of the auto manufacturers of billions of rupee deposits by the public as advance booking till July 19, 2022.

Noor Alam Khan chaired the meeting of the Public Accounts Committee (PAC).

The Ministry of Industries and Production gave a comprehensive briefing with a reference to late delivery of vehicles and tractors.

The representatives of auto manufacturers excluding KIA Motors attended the meeting alongwith Secretary Industries, Secretary Science and Technology, Additional Secretary Climate Change, and Chief Executive Officer (CEO) Engineering Development Board (EDB).

Noor said he was influenced not to take the matter but he would not compromise on safety features of vehicles and standards.

Responding to the allegation of Muhammad Talha Mahmood, he clarified that he was not harassing the businessmen but he would go to any extent to implement the safety and Euro V standards in the vehicles.

AGP Muhammad Ajmal Gondal apprised the committee that the data of delivered auto units and import of raw material was not reconciled as unit were less produced against the imported raw material.

He further said that various observations were raised in Audit Report 2017 and in onward reports but no report came under discussion before the PAC.

The Science and Technology secretary said they had written 12 letters to auto manufacturers to appear before a technical committee of the ministry to respond to the safety and other standards applicable under the law but no one appeared.

He said, “It is not mandatory under the law that auto manufacturers must introduce safety standards in vehicles”.

Earlier, the CEO EDB said the board had the mandate to issue licences to manufacturers and monitor their performance but ensuring safety measures was not the board mandate.

Additional Secretary Climate Change Joudat Ayaz said that two years ago, the Ministry for Climate had prepared a plan that 30 percent vehicles should be electric by 2030 to save Rs200 billion. The plan was also part of the Auto Industry Development and Export Policy (AIDEP) 2021-2026, he added.

Secretary Industries Imdadullah Bosal suggested that a committee should be established comprising officials of industries, Petroleum Division, science and technology, climate change, FBR, AGP, and others to look into safety and other measures not found in vehicles.

The Chairman Committee said the absence of safety measures in vehicles was a criminal offence and an FIR could also be launched against the manufacturers. He said the committee would ensure that manufacturers should introduce safety measures and Euro V standards in the vehicles.

The Chairman Committee further alleged that the engines were imported in three phases to reduce duty from 35 percent to 10 percent. He said he would also hold an audit of the FBR on import duty on the raw material used in the auto sector.

Member Committee Aamir Talal Gopang claimed that the EDB was dissolved in December 2021 by the prime minister and had no legal status.

Copyright Business Recorder, 2022