Eyebrows raised over outlays on PAF base Nawabshah

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2013-01-10T01:57:19+05:00 Ramzan Chandio

KARACHI - Sindh Assembly’s Public Accounts Committee on Wednesday raised questions on the expenditures incurred on the Sindh Land Management and Development Company and land purchased for PAF base in Nawabshah from the provincial exchequer.The PAC gave a deadline of one week to the Board of Revenue Department to present record and relevant documents of spending.PAC, which met with its chairman Sardar Jam Tamachi Unar in the chair here at Sindh Assembly building, took up the directives of the Sindh chief minister to probe into the reports of irregularities in Board of Revenue. DG Audit Ghulam Akbar Soho informed the meeting that two audit paras of audit report of Board of Revenue Department, involving fraudulent payment of Rs200 million on account of Sindh Land Management and Development Company and non-production of record of over Rs400 million spent on acquiring of land for PAF base in Nawabshah, home district of President Asif Ali Zardari.DG Audit termed the Sindh Land Management and Development Company a ‘fake’ firm, on which expenditures of Rs200 million incurred by the Board of Revenue, besides raised the mandate of spending sum of over Rs400 million on the establishment of PAF base, which comes under the portfolio of defence budget.PAC chairman Sardar Jam Tamachi while giving one week to the board of revenue to come up with the documentary proof of the expenditures incurred on the land management company, besides sought the clarification from the finance department whether the funds could be incurred for land acquisition of land for the establishment of PAF base. MPA Mujadid Isran, member PAC in his observations said that nature of matter is serious as CM through many reminders has also sought the pace of implementations on his directives to investigate the reported irregularities in the board of revenue department.According to the audit report, the secretary of board of revenue Hyderabad directly paid Rs200 million to M/S Sindh Land Management and Development Company for the project of ‘poorest of the poor’. While, scrutinising the record, it was noticed that the letter head of the company had dubious monogram of Sindh government, besides the address, phone numbers, company registration, national tax number and sales tax number of the company were also not appearing on the letter head.  The audit department in its comments stated that the board of revenue failed in producing the record for establishing a company, PC-1 of project, tender detail, bank guarantee, company registration certificate, copy of agreement between company and board of revenue department.  The irregularity was pointed to the department in July and December 2011, but no reply was received till finalisation of this report, audit department stated in the document.However, concerned officer of the board of revenue in the working paper termed the comments of audit department based on misconception about the process of public limited company formation, incorporation and establishment in accordance with the companies ordinance 1984, saying that Sindh Land Management & Development Company is a wholly owned subsidiary of the Government of Sindh. While, the senior officials of the Board of Revenue Department told the PAC that all the relevant record of expenditures incurred on the Sindh Land Management and Development Company available, which could be produced before the audit department within a period of ten days. Officials of department further said that government recommended a sum of Rs300 million for the land management company and poorest of the poor project, but Rs100 million were provided each for company’s operational expenditures and poorest of the poor project. Responding to the reservations raised by the audit department, board of revenue department official told the PAC that the then DCO had made payments of Rs400 million to the private land holders, who land acquired for the establishment of PAF base in Nawabshah district. Meanwhile, the Deputy Commissioners of Shikarpur and Kashmore-Kandhkot districts came with their staff to get settle the audit paras of district governments, but PAC without proceeding further postponed the meeting and directed them to come with updated working papers next week.

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