The Special Audit of Pakistan Telecommunication Authority (PTA) 2010 has pointed out gross violation of Standard Operating Procedures (SoP) by the Authority as it failed to cancel the licenses of government defaulters who had been in default even since 1997-98.
It reveals that quite contrary to SoP, no letter was issued on 31 May each year by the authority for the renewal of license to the licensees nor such letters were shown to be written.
Out of the total Rs.100.19 million outstanding dues, the authority has recovered just Rs.3.8 million which is 3.7 percent of total outstanding dues, the report said adding it clearly indicates weak receivable management and poor performance of the PTA.
It also revealed that PTV presented the cheque amounting to Rs.228, 100 to the Authority on 2.6.2011, however it was returned by the bank on 10.6.2011 due to insufficient balance and the Authority did not take any action in this regard.
According to SoP regarding outstanding dues duly circulated among, all the concerned are required to be issued a letter for renewal of license by 31 May each year requiring the licensee to pay annual spectrum charges for the next financial year in advance by 30 June.
If the licensee fails to get license renewed within the grace period of two months, then its license shall stand cancelled by 31 August automatically without further notice and assigned spectrum shall be revoked and surrendered to Frequency Allocation Board (FAB). PTA shall send the license cancellation letter to licensee with a copy to Finance Division. The SoP also provides that the Finance Division of PTA shall provide a list of the RBS licensee who have not paid their dues to RBS Directorate of PTA by 15September each year and RBS Directorate shall finalize the list of such licensees and submit it for the information and approval of the authority. It says that the statement of government defaulters showed that the departments had been in default since 1997-98 but their licenses were not cancelled and assigned spectrum was not revoked and surrendered to FAB as required in the SoP. The record further revealed that Finance Division of PTA did not provide a list of those RBS licensees who have not paid their dues to RBS Directorate by 15September of each year as required in the SoP.
