ISLAMABAD: The Auditor General of Pakistan (AGP) has detected serious financial irregularities in the Pakistan Civil Aviation Authority (PCAA) amounting to Rs307.84 billion including a recoverable amount of Rs6.23 billion.
According to the audit report 2022-23, the Pension and Treasury Investment Section invested Rs67.46 billion in the market treasury bills (MTBs), the Pakistan Investment Bonds (PIBs), and the investment account without the approved policy.
The audit further observed that there was no proportion for investment into MTBs, PIBs, and banks.
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During the audit of the Finance Directorate (Treasury and Investment), Civil Aviation Authority (HQ), Karachi, it was noted that the Pension Section has invested an amount of Rs40 billion by adopting an unapproved investment policy.
Whereas, the CAA Investment Committee has also invested an amount of Rs34.5 billion in the same banks during the period April 2022 to June 2022.
The audit observed that as per the approved CAA investment policy any bank that holds CAA investment and also has a CAA daily product account, the total amount of placement should not be more than Rs6 billion. Whereas, an amount of Rs34.5 billion was invested by the CAA Pension Investment Committee in the same banks beyond the prescribed limit approved by the CAA Board.
Moreover, the Finance Directorate, CAA, Karachi, invested an amount of Rs47 billion in different banks/financial institutions during the year 2021-22.
The audit observed that the CAA Pension Investment Committee invested an amount of Rs47 billion in different banks/financial institutions without the approval of the competent forum.
Further, the audit is of the view that in the presence of highly capable CAA Investment Committee headed by a worthy CAA Board member, there was no need of separate investment committee for pension funds.
The audit maintains that irregular investment of the CAA and pension funds was due to weak financial controls.
Copyright Business Recorder, 2023
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