Nato containers' scams: anyone found involve not to be spared, PAC assured

Chairman, Federal Board of Revenue (FBR), Salman Siddique has informed the Public Accounts Committee (PAC) of the National Assembly that he was himself investigating the high profile Nato containers' scam, assuring the committee that no one would be spared if found guilty.
Responding to the queries of Chairman PAC, Chaudhry Nisar Ali Khan and other members of the committee, which met here on Friday, Salman Siddique said that Afghan authorities had provided data of the missing containers, which reveals that over 4000 containers did not reach Afghanistan.
The meeting was attended by MNAs Yasmeen Rehman, Hamid Yar Harraj, Noor Alam, Sardar Ayaz Sadiq, Zahid Hamid, Asia Nasir and Nadeem Afzal and other officials. Taking up the audit paras regarding the missing Nato containers, the PAC observed that some people involved in this multi-billion corruption scam were being saved for one or the other reasons. But the FBR chief assured the PAC that no one would be spared.
Salman Siddique said that investigation was underway in a transparent manner into this multi-billions scam and every one involved in this scam would be taken to task. Taking note of FBR Chairman late coming to the meeting, the Chairman PAC directed the government to take stern action against him, as he reached late in the PAC meeting on Friday.
He refused to accept the apology of Chairman FBR, saying that the PAC will recommend the government to take stern action against the bureaucrat, who is not ready to give due respect to PAC. When the meeting started, the chairman took notice of Salman Siddique's absence from the meeting. On this, FBR officials informed the committee that Chairman FBR was attending the Standing Committee on Finance and he was informed to reach in the PAC meeting.
The PAC rejected the explanations of FBR officials stating that if he was not able to attend the PAC meeting then he should have submitted written application. Any secretary, who will not attend the PAC meeting, will be taken to the task, Chairman PAC warned, adding that some bureaucrats are blue-eyed of the rulers and they consider themselves above law and are not considering themselves to answerable to the Parliament. Nisar directed the FBR to submit the reports regarding the deliberations of the Department Audit Committees (DACs) of the FBR in next meeting.
The FBR authorities informed the PAC that the inquiry committee found that the fraud of clearance of 265 containers from Qasim International Containers Terminal (QICT) without paying duty and taxes occurred due to flaws in the Pakistan Customs Computerised System (PaCCS) and present practice.
Audit authorities informed the PAC that the inquiry committee had observed that there was no mechanism in PaCCS for verification of importers identity through connectivity with NTN, STRN's data, manifesto clearance and reconciliation modules, auction module, transhipment module due to which fraud had occurred.
The audit further revealed that out of the 20 modules included in the contract, three were not developed and eight were left incomplete by the vendor despite the receipt of entire contractual amount. Short and non-development of certain modules resulted in non-realisation of government revenue amounting to Rs 1565.43 million.
The audit brief revealed that PaCCS project was completed at a cost of Rs 116.108 million against the approved cost of Rs 55.00 million. There was cost over-run of Rs 61.108 million, which had not yet been regularised by the competent authority.
The PAC reviewed the audit paras of the FBR for year 2008-09 and audit Authorities informed the committee that the contract for computerisation of Customs Department was granted for Rs 155 million while the project was not more than Rs 116 million.
The PAC asked the Finance Division to submit complete details of the project in the committee. The PAC reviewed the audit para of Pakistan Postal Service and the authorities informed the committee that around 8700 post offices situated in rural areas were running on loss. The annual average loss of the post office is Rs 800 each while total amount is around Rs 10 million.
The PAC urged the authorities of Pakistan Postal Service not to close these post offices which are performing the national duty and Pakistan Post can fill this gap by getting money from District Governments. The PAC observed that this nominal loss could be avoided by bringing some administrative changes. Audit Authorities informed the PAC that Pakistan Telecommunication Company Limited (PTCL) had not paid Rs 6.1 million which it has to pay in the head of a joint venture school being run in Lahore.
The PAC directed the Pakistan Post authorities to take up the issue with PTCL and ensure the recovery of Rs 6.1 million within one month. The Audit authorities also informed the PAC that National Bank of Pakistan had to pay Rs 4 million to Pakistan Post as service charges under an agreement to deliver annual statements to Bank's account holders.