The Economic Coordination Committee (ECC) of the Cabinet headed by Finance Minister, has approved supplementary grant of Rs 410 million for repair of two VVIP Gulfstream aircraft in use by the Prime Minister well-informed sources told Business Recorder. However, the ECC has failed to resolve controversy between Ministry of Defence Production and Pakistan Air Force (PAF) regarding transfer of funds.
The sources said, Ministry of Defence Production stated that Directorate General Defence Procurement (DGDP) concluded a contract for purchase of 2x VVIP Gulfstream aircraft (one new + one used) at a cost of $ 58,550,924 on September 10, 2005 on the directions of the Ministries of Finance and Defence. Subsequently, payment of repair and maintenance of 2xVVIP Gulfstream began to be made through the Ministry of Defence Production in favour of air headquarters. Presently, a demand of Rs 410 million has been received from the air headquarters.
Ministry of Defence Production proposed that an amount of Rs 410 million ( $ 2.9 million) for payment relating to repair and maintenance of VVIP Gulfstream aircrafts may be provided through supplementary grant for onward transfer to the air headquarters. It, was, however, pointed out that allocation for this purpose is presently made out of grant number 27 of Ministry of Defence Production (sub-head A09-A09503-other) which may be allocated directly to Ministry of Defence which is the controlling Ministry of air headquarters as this Ministry has no record/details of maintenance needs/ToR of usage of these aircraft. Thus in keeping with the principles of financial discipline allocation and in view of the fact that both aircraft are presently on maintenance in the air headquarters, it would be in the fitness of things to streamline allocation mechanism once and for all by making it directly between the Finance Division, Ministry of Defence and the air headquarters with effect from July 1, 2019.
The meeting was apprised that Finance Division agreed to allocate Rs 410 million ($ 2.9 million) for payment relating to repair and maintenance of VVIP Gulfstream aircrafts through supplementary grant under demand number 27 for onward transfer to Pakistan Air Force (PAF). The issue relating to transfer of allocation of funds for this purpose from Ministry of Defence Production to Ministry of Defence/PAF may be settled between these two Ministries.
After discussion, the ECC approved the summary of Ministry of Defence Production regarding supplementary grant of Rs 410 million ($ 2.9 million) for payment relating to repaid and maintenance of VVIP Gulfstream aircrafts through supplementary grant under demand number 27 for onward transfer to air headquarters.
The ECC further decided that the issue relating to transfer of allocation of funds for repair of two VVIP aircraft from the Ministry of Defence Production to Ministry of Defence/PAF may be settled between these two Ministries.