EGD projects: National Assembly panel detects Rs 1 billion embezzlement

While expressing serious reservations on incomplete projects of Electronic Government Directorate (EGD), the National Assembly standing committee on Information Technology pointed out embezzlement of Rs 1 billion. The committee met with Barjees Tahir in the chair here on Wednesday to discuss inquiry report regarding defaulter companies of EGD and the reason for not initiating legal action against them.
The parliamentary panel showed its anger over eighteen incomplete projects of EGD by six companies to whom payments have been made, but work has not been completed so far, which caused more than one billion rupees loss to the national exchequer. Standing committee also resented purchase of computers for the project in 2006 without developing any software for these computers.
The committee said that EGD project was to be completed in one year, but after passage of seven years the project has not been completed. Anusha Rehman said that computers which were purchased 7 years ago have no value because IT industry developed rapidly and these old systems are not compatible to the latest technology. Standing committee showed strong annoyance on this matter and said that corruption is prevailing everywhere in the department.
Secretary Information Technology, Amir Tariq Zaman informed the committee that ministry has re-engaged firms in 16 projects and work would be completed in 2013. He said that two companies fled and one of them has changed its name. However, negotiations are going on with the other and soon the issue would be settled. Meanwhile, the committee has endorsed recommendations of the sub-committee on the issue of tax evasion worth Rs 47 billion by telecom companies.
It recommended that the issuance of waiver notification is contentious and, the process appears to be non-transparent requiring a probe. Since NAB is already engaged in the matter, they should proceed as per the law. It further recommended that the FBR should forthwith determine whether or not interconnecting Revenue/interconnect services rendered bilaterally by the Telecom companies to each other is chargeable to FED/ Sales Tax. The Committee recommends that Telecom companies should cooperate with the FBR so that FED/ Sales Tax chargeable on interconnecting can be determined.
This issue would be amicably resolved through the constitution of Alternative Dispute Resolution Committee (ADRC) and no coercive measures would be taken by the FBR against the Telecom companies, unless it becomes inevitable due to non co-operation of Telecom companies to resolve the matter as per the law, rules and regulations.
The FBR will take action against those officials whether serving/transferred or retired who are responsible for looking into the matter of determining FED/Sales Tax on interconnecting charges for interconnect services of Telecom companies since 2005, but they did not take any step in this regard. If it is determined now that interconnecting revenue is taxable, this would then mean a huge loss to the public exchequer. The Committee recommended NAB to finalise its inquiry report at the earliest.