KARACHI – Setting aside the concerns by industrialists over massive irregularities in audit reports, the Sindh Industrial Trading Estates (SITE) Limited is continuously approving the erroneous financial reports from a firm.
Reliable sources told Pakistan Today that despite the SITE General Body private members terming the accountancy firm’s performance as unsatisfactory; the SITE senior management was insisting to carry out auditing from the same firm to cover up its financial irregularities. Currently, chartered accountancy firm BDO Ebrahim & Co is auditing the financial affairs of SITE.
The industrialists have been asking the SITE management to re-audit their accounts for the last couples of years through another firm AF Ferguson & Co. During its 29th General Body meeting, SITE Managing Director (MD) Abdul Rasheed Solangi had presented the details of audited accounts for the financial years 2004-5, 2005-6 and 2006-7.
However, according to the meeting’s minutes available with Pakistan Today, leading businessman and SITE general body member SM Muneer said he was surprised to see that the auditors have observed that the requisite record was not provided to them and suggested that the accounts be re-audited by AF Ferguson firm,.
The SITE MD informed that the present auditor’s contract has already expired and for the auditing of the remaining period from 2007-8, 2008-9 and 2009-10, appointment of an auditor firm was required. After detailed discussions, it was decided that the accounts for financial years 2004-5, 2005-6 and 2006-7 may be re-audited by M/s Ferguson, while the firm be engaged for audits of the remaining period.
Interestingly, Solangi insisted that Ebrahim & Co had started auditing for 2007-8 and is expected to complete the audit of the remaining period by June 2011. Hence, the firm may be reappointed for auditing the remaining period of 2008-9 and 2009-10 also. Muneer was of the view that since the working of the present auditors was not satisfactory; they should not be reappointed and proposed Ferguson & Co for auditing the remaining period.
Another SITE general body member, Dr Mirza Ikhtiar Baig said that Rs 200 million were illegally invested by the SITE ex-managing director and suggested stern action against the officers concerned while suggesting that the placement of funds be made in highly-rated banks offering competitive profit rates. Despite the refusal of the finance committee, former SITE managing director Lubna Salahuddin had invested Rs 200 million in First National Equity Limited, an investment company.
Sindh Industries and Commerce Minister Rauf Siddiqui, however, had referred the issue to the Sindh Anti-Corruption Department and the Federal Investigation Authority (FIA) for taking legal action against the official. He also briefed the chief minister over the issue, on which the latter instructed the Sindh chief secretary for further probe, upon which Rs 33.30 million were recovered out of the total principal amount.
Siddiqui while talking to Pakistan Today confirmed that the financial affairs of SITE were being audited. “Initially, the estate engineers were reluctant to submit financial receipts to the auditors,” he added. “Previously, no audits were carried out. After I took over as the industries minister, the process began and many irregularities have been unearthed”, said Siddiqui.
