Audit review uncovers irregularities in Defence Production Division
ISLAMABAD: A subcommittee of the Public Accounts Committee (PAC), chaired by Naveed Qamar, reviewed audit reports of the Defence Production Division on Thursday, raising serious concerns over fake bank guarantees, unpaid dues, and irregular recruitments.
The audits, covering fiscal years 2011-12, 2012-13, 2014-15, and 2021-22, revealed that M/s Pak Turk had submitted fraudulent bank guarantees to secure contracts for supplying pulses and Basmati rice. Officials confirmed that the company has been blacklisted and the matter is currently under trial.
Committee members questioned why the guarantees were not verified at submission and ordered the Federal Investigation Agency (FIA) to be brought into the probe.
Another audit finding highlighted that Pakistan Aeronautical Complex (PAC) Kamra had failed to recover guarantees worth Rs26.9 million, \$2.5 million, €2.6 million, and €870,000 from various contractors. Defence officials stated that 112 out of 295 guarantees had been recovered so far, after which the committee closed the para.
The panel also examined Karachi Shipyard’s placement of Rs2.34 billion in commercial banks, a decade-old issue. Qamar suggested the matter now be regularised through the finance ministry.
Auditors further reported that Karachi Shipyard had yet to recover Rs550 million from clients. The committee settled this objection as well.
The subcommittee also reviewed concerns over recruitments made without advertisements at Karachi Shipyard. Officials clarified that emergency hiring was necessary for the Hangor submarine project, particularly to ensure immediate medical support for Chinese engineers. A consultant doctor had therefore been promoted to Deputy General Manager (Medical). The PAC later closed the audit point.
