ISLAMABAD: The Public Account Committee (PAC) on Thursday raised questions on the performance of Ministry of Maritime Affairs, observing that the number of audit paras has increased from the previous year.
The committee meeting chaired by Junaid Akbar examined the appropriation accounts for the year 2022-23, audit report for the year 2023-24 and special audit report/performance audit report/forensic audit report.
The committee recommended the ministry for taking the matters to the cabinet and do legislation if requires to improve performance.
The committee chairman said that there was information that in connivance with the management, court cases were not moving forward.
The Maritime Affairs secretary said that for the first time the sector revenue reached Rs100 billion, when most of the state-owned enterprises (SOEs) were suffering from losses.
GM Admin Karachi Port Trust informed the committee that 100 acres of land worth billions of rupees was vacated from encroachers during the last four months.
Further, out of court settlement was initiated and targets the resolution of 100 cases in the next six months.
The committee was also informed regarding different development projects in Gwadar. The secretary informed that on account of infrastructure gap i.e. M-8, electricity availability and lack of development in economic zones, Gwadar port could not operate with full potential. He said during the last few years, electricity and water availability were improved in the area.
The department explained that supplementary grant of Rs822.75 million was obtained under Gwadar Port Authority for financial assistance of poor fishermen at Gwadar Port for procurement of boat engines at their own. Funds of Rs18.428 million were surrendered as five percent cut imposed by government on non-ERE expenditure. The committee settled grantno-70 of the ministry on recommendation of DAC.
The committee took grant no 130 –capital outlay on Maritime Affairs Division. The department explained funds of Rs1.327 billion were surrendered due to non-release by the Finance Division. The committee settled the para.
Total 108 audit paras were printed in the audit report public sector enterprises for the year 2023-24, in respect of the Ministry of Maritime Affairs. The committee took six audit paras including five regarding Port Qasim Authority and one regarding Pakistan National Shipping Corporation.
The committee was informed that during audit of Port Qasim Authority for the year 2021-22, it was observed that the management allotted land of 1,250 acres of land to M/s Pakistan Textile City Limited in 2006/2007 for boosting export of textile products. The project could not succeed due to multiple reasons. Subsequently, the matter was discussed in the Cabinet. However, management did not implement the decision of the government even after lapse of two years, expenditure of Rs4,000 million was not refunded to PTCL and also the land was not re-allotted.
Audit is of the view that non-implementation of government decision (non-refunding expenditure of Rs4 billion and non-allotment of land compromise PDC charges of Rs50,000 million (40 million/acre, 1,250 acres).
The committee was further informed that during audit of PQA for the year 2021-22, it was observed that the management purchased Trailing Suction Hopper Dredger (TSHD) amounting to $36.95 million equivalent to Rs3.345 billion under agreement. However, it was observed that the dredger was not insured with M/s National Insurance Company Limited and management awarded contract of manning and maintenance including insurance at $35.230 million to M/s China Shipbuilding and Trading Company (CSTC) from 2015 to-date.
Audit is of the view that non-insurance and payment of insurance cost of dredger to third party was unjustified and is held irregular in audit.
The management informed that the dredger was insured by the Company (M/s CSTC) being operator and management stated that NOC would be obtained from NICL. DAC directed the management to get the dredger insured from NICL.
The management replied that the firm having dredger operational control along with all risks, logically and legally demanded insurance company of their choice to avoid considerably long processing time invariable delays in case of adoption of NICL as insurance company. Accordingly, it was not a choice with PQA to dictate the firm to get the ship insured with NICL. However, M/s CSTC was made contractually bound with a condition that "the "contractor shall be obliged to place all insurance related to the contract with any AA rating insurance company operating in Pakistan acceptable to the employer.
The management informed that the dredger is currently insured by a Chinese insurance company, as the contractor, M/s CSTC, demanded an insurance company of their choice avoid delays, given local insurance companies' inherent delays in finalising insurance claim.
The committee referred back several paras related to the ministry and its attached institution to Departmental Account Committee (DAC) with a month deadline to reconcile the outstanding paras.
The committee members strongly condemned the tragic incident that took place in Pahalgam, and expressed profound sorrow and grief over the loss. Rejecting the immediate accusations levelled by India against Pakistan, the committee members described them as baseless, fabricated, and driven by malice. They stated that India’s knee-jerk response to blame Pakistan without evidence is indicative of a pre-planned narrative.
The committee chairman pointed out lack of quorum and the meeting was concluded without taking the entire agenda.
Copyright Business Recorder, 2025
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