A probe conducted by the enquiry committee headed by FBR member (Taxpayer Audit) reveals that the fraud of removal of 265 containers from Qasim International Containers Terminal (QICT) without paying duty and tax was a result of flaws in the Pakistan Automated Customs Computerised System (PaCCS). The performance audit report of the FBR’s inquiry committee, which was presented to the Public Accounts Committee on Friday, further revealed that the loopholes in PaCCS resulted in non-realisation of government revenue of Rs 15 billion.
The PAC meeting was chaired by Nisar Ali Khan. The meeting was told by audit officials that the enquiry 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, trans-shipment module, which had led to the fraud being undertaken successfully. The audit officials said had deficiencies pointed by audit authorities in the modules been rectified, the loss of billions could have been avoided.
The audit further revealed that of the 20 modules included in the contract, three were not developed, while eight were left incomplete by the vendor despite the receipt of entire contract amount. “Short and non-development of certain modules resulted in non-realisation of government revenue of Rs 1,565. 43 million,” the report added. The audit said PaCCS project was completed at a cost of Rs 116.108 million against an approved cost of Rs 55 million. It is also mentioned in the report that as per contract executed with software vendor (M/s Agility), proprietary rights and source code of PaCCS hade been kept by the vendor and that was a security risk.
There was no security regarding import and export of defence related cargo movement, the report said. PAC member Nadeem Afzal Chann questioned whether the name of former FBR chairman Abdullah Yusuf had been included in the report, to which audit officials aid it was not. The FBR chairman said both issues regarding containers and FBR report details were in his knowledge. “I will give the details in the next meeting,” he said, adding that he would also provide data in the next meeting. It was decided that audit concerns and other questions regarding Pakistan Automated Custom Computerised System (PaCCS) would be taken up in next meeting.
