PAC launches probes into financial irregularities at Utility Stores, Pakistan Steel Mills

The Public Accounts Committee (PAC) has decided to initiate multiple investigations into financial irregularities and governance issues in various government institutions, including Utility Stores, Pakistan Steel Mills (PSM), and the Engineering Development Board (EDB). 

The PAC meeting, chaired by Junaid Akbar Khan, reviewed audit reports on the Ministry of Industries and Production, Pakistan Steel Mills, and NTDC. The committee found a discrepancy of Rs40 million in the expenditure of a Rs50.4 billion grant allocated to the Ministry of Industries and Production, prompting the formation of a sub-committee to examine Utility Stores.

The committee formed a sub-committee to examine Utility Stores affairs, directed an inquiry into unauthorised payments to the EDB CEO, and warned that the NTDC land dues case will be referred to the FIA if not resolved within a month. Additionally, the Pakistan Steel Mills land-grabbing case in Karachi has been handed over to NAB, which must submit a report within two months.

PAC members were also informed that the EDB CEO received Rs950 million in payments over two years without the prime minister’s approval. The committee directed the Ministry of Industries and Production to provide relevant regulations in the next meeting before proceeding further on the matter.

The committee also took up the NTDC’s non-payment of land dues to Pakistan Steel Mills, involving 75.5 acres allotted in 2022-23. Despite the agreement, NTDC had not paid right-of-way charges, lease money, or ground rent for three and five years, respectively. 

PAC member Bilal Ahmed Khan expressed strong reservations, while Junaid Anwar recommended referring the matter to the FIA if it remains unresolved in a month.

The committee was further informed that Pakistan Steel Mills suffered a loss of Rs1 billion due to electricity payments, even though it has been non-operational since 2015. Audit authorities revealed that from July 2022 to June 2023, expensive electricity was supplied to the mills, and the administration failed to convert industrial and commercial meters to residential ones, leading to unnecessary expenditures. 

The Secretary of Industries and Production stated that efforts were underway to reduce expenses, including adjustments in gas supply, subsidies, and salary savings. However, the PAC chairman ordered an investigation to identify those responsible.

The meeting also addressed land occupation issues in Gulshan Hadeed Colony, Karachi, where 176 plots on 56 acres were reportedly given to four individuals. PAC questioned why NAB had not taken action against the encroachments, with Senator Afnanullah Khan demanding that the leases of current occupants be suspended. The committee ultimately decided to hand the case over to NAB and requested a detailed report within two months.