Properties worth Rs32bn: SLIC has no policy to manage real estate, AGP observes

The Auditor General of Pakistan (AGP) has objected that State Life Insurance Corporation of Pakistan (SLIC) has no real estate management policy/SOP to effectively manage the corporation's properties worth Rs 32 billion throughout Pakistan.
According to the performance audit report on real estate management in State Life Insurance Corporation of Pakistan covering period of 2015-16 issued on Friday, during performance audit of real estate management in SLIC, it was observed that the real estate management was managing corporation properties through out Pakistan having market value of over Rs 32 billion haphazardly in the absence of any manual/SOP/policy as Board of directors did not formulate policy/manual/SOP for real estate management so far.
Audit is of the view that in the absence of policy/manual/SOP for real estate management, real estate department could not achieve the revenue at optimal level.
The Corporation is working in the absence of polices, manual, SOP regarding tenancy, real estate management and risk assessment, it said.
Key audit findings revealed non-formulation of manual/SOP/policy for real estate/risk management committee reported in four cases, blockage of funds amounting to Rs 272.452 million reported in two cases, non-production of assets reported in two cases, non-transferring the title of properties in the name of SLIC, expected loss of Rs 193.437 million due to non-traceable decreed assets of tenants and vacating of the premises by tenants without payment of outstanding rent.
The AGP further recommended to review the guidelines/policy to run the affairs/functions of real estate division, overview of purchase/sale of State Life properties under the real estate division, overview of selection of architects/consultants for new running projects, overview of any pending tenancy/recovery and litigation matters of tenants, overview selection of contractors for construction of projects, overview of maintenance/renovation of buildings including works like civil, electrical and mechanical and electronics etc, overview replacement/updating of services like lifts, air conditioners, fire fighting etc and overview of services (security, water, janitorial and firefighting etc and review progress of projects.