April 26, 2014
The Privatisation Commission (PC) has to recover Rs 123.85 million outstanding dues from the buyers of Haripur Vegetable Ghee Industries, a unit of Ghee Corporation of Pakistan (GCP). The Public Accounts Committee (PAC) Monitoring and Implementation Committee was informed on Friday that matter of recovery of outstanding dues was under litigation with the buyer ever since its privatisation in 1992.
An official of PC said that outstanding dues against Suraj Ghee Industries, another unit of GCP, have been cleared. However, the GCP management said that the privatised unit had to clear Rs 41 million of their outstanding dues and cases were under trial in the court. An official of the Ministry of Industries said that sometimes, flaws in due-diligence procedure or weak clauses were put in agreements of PC with buyers, and it ends up in financial losses to the national exchequer or court cases. “The Privatisation Commission must be made accountable like other government departments over their negligence, which has been reflected in the court cases between the government and privatised units,” the committee was informed.
In its ruling, the committee said that the matter must be resolved to recover the outstanding dues of Haripur Vegetable Ghee Industries from the buyers in two months. The committee was informed that there was no record or clue of 3,971 M. Tons edible oil pilfered in 1992-93. Trade debts and other receivables as on June 30, 2005 included an amount of Rs 82 million from Cosmopolitan Development Company Ltd, as being cost of pilfered edible oil from Keamari in Karachi.
The Punjab government has declared 22 kanal of Morafco Industries land for industrial zone. Morafco Industries Ltd Faisalabad’s land was earlier earmarked for industrial cluster for the establishment of common technology and HR centers. The proposal could not be materialised mainly due to the issue of land. Now, the Punjab government agreed for the disposal of the land by the Privatisation Commission under a sharing formula. According to the formula, 20 percent of the sale proceeds to be given to the Punjab government and remaining 80 percent to be retained by the federal government. Committee member Mian Abdul Menon said that the matter of the land was settled after 60 years when Punjab Chief Minister Shahbaz Sharif personally intervened.
The Managing Director of Heavy Mechanical Complex (Pvt) Limited (HMC) informed the committee that the government has earmarked Rs 665 million for up-gradation of HMC and another Rs 21.5 billion to build thermal and hydel power plants of 300 MW power generation capacity. The committee referred a case to the National Accountability Court regarding transfer of all the medical stores run under Utility Stores Corporation (USC) to a Islamabad based private medical firm in 1997 on a simple directives of the Secretary of Health in the chair at that time. This exercise deprived the USC of Rs 4.4 million. The new management of USC is following the case.