A subcommittee of the Public Accounts Committee (PAC) on Thursday reviewed multiple audit reports of the Defence Production Division, raising concerns over fake bank guarantees, uncollected dues, and irregular appointments. The panel, chaired by Naveed Qamar, examined reports covering fiscal years 2011-12, 2012-13, 2014-15, and 2021-22.
According to media reports, auditors noted that M/s Pak Turk had submitted fake bank guarantees while securing contracts for pulses and Basmati rice. Defence Production Division officials said the company has been blacklisted and the matter is under trial. The PAC questioned why the guarantees were not verified at submission and directed that the Federal Investigation Agency (FIA) be included in the investigation.
Another audit highlighted that PAC Kamra had failed to recover guarantees worth Rs26.9 million, $2.5 million, €2.6 million, and €870,000 from various contractors. Officials confirmed that 112 of 295 bank guarantees have been collected. The committee later settled this audit para.
The subcommittee also discussed Karachi Shipyard’s decision to park Rs2.34 billion in commercial banks, calling for regularisation through the finance ministry. Auditors further noted that Karachi Shipyard had not recovered Rs550 million in dues from clients, which the committee later addressed.
An audit objection related to recruitments without advertisement at Karachi Shipyard was also taken up. Officials explained that emergency hiring was required for the Hangor submarine project and to provide medical support to Chinese engineers on-site. A consultant doctor was elevated as DGM Medical, and the PAC subsequently disposed of the para.
