Rs 2.92b embezzlement unearthed in PECO

ISLAMABAD – The inquiry report presented to the monitoring and implementation committee of the Public Accounts Committee (PAC) on Tuesday revealed an embezzlement of Rs 2.92 billion in Pakistan Engineering Council (PECO). The report into the sale of shares of PECO at cheap rates revealed that the shares valued at over Rs 3 billion were sold to certain personalities and groups for Rs 80 million only. The investigation report held former chairman of the National Investment Trust (NIT) Tariq Iqbal and three others responsible for the scam.
However, the PAC directed the Ministry of Industries and Production to hold a final meeting with the Ministry of Finance, Securities and Exchange Commission of Pakistan, the Auditor General of Pakistan and other concerned departments and submit final findings within seven days.
The implementation and monitoring committee of the PAC, which met with Yasmeen Rehman in the chair, was also informed that the NIT former chairman, in connivance with some powerful and influential players including Asif Jamil, Athar Hassan and Fayaz managed the sale of PECO shares at throwaway rates, causing a loss of Rs 2.92 billion to the national exchequer. Sui Northern Gas Pipelines Limited (SNGPL) Managing Director Rashid Lone informed the committee that most of gas was stolen by industrial and commercial costumers in Lahore and Gujranwala, where two or three thefts were detected daily.
To queries raised by Sardar Ayaz Sadiq about the effectiveness of smart meters installed by SNGPL, said the thieves had become “even smarter” than the smart meters and often found new ways to steal gas. He said mushroom growth of CNG stations had also badly affected supply of gas to domestic consumers. “We have some 2,700 CNG stations in the north, which are increasing the gap between supply and demand” he said, adding that “proposals for increasing gas tariffs almost equal to petrol and diesel had been moved to the federal cabinet to discourage CNG usage for commuting purposes”.
He said CNG stations consumed 11% of total gas consumption in the country and earned at least 30% profit to owners of stations. “The national gas demand increases by seven to nine percent per annum while new explorations have not been made in sufficient quantities” Lone said. Another special committee of the Public Accounts Committee (PAC) on Tuesday expressed serious concern over the sale of 47 acres of land by Pakistan Sports Board (PSB) to Gun Club at throwaway rate.
The committee, which met with Zahid Hamid in the chair to review audit objections for the financial years 1990-91 and 2001-2 in respect of Ministry of Interior, Ministry of Sports and Ministry of Information Technology, sought a detailed report in this connection.
The Ministry of Information and Technology secretary told the committee that the ministry had released $0.5 million for construction of subordinate office of the ministry in San Francisco, but no PC-1 was prepared for the project. Audit officials said the project was devised to favour certain people, upon which the committee sought a report on the matter within three weeks.