Audit objection over Rs12.71 bn has been raised against the National Telecommunication Corporation (NTC), mainly owing to unauthorised expenditures, violation of finance related rules and non-recovery of dues.
The audit has highlighted that the NTC made unauthorised expenditure without approved budget amounting to Rs6.03 billion.
The audit objected about irregular procurement of refurbished Long-Haul spares amounting to Rs126.7 million, as discrepancies were noticed in procurements after the refusal of Huawei the NTC procured re-furbished network equipment of Huawei from local market but there was no provision in the regulations.
The Corporation made an un-justified parking of funds amounting to Rs2.94 billion to avoid the deposit of surplus income to federal consolidated fund.The NTC is facing audit objections of Rs2.38 billion for facilitating vendors who did not fulfil their obligations and maintaining incomplete revenue record of its Data Centre, as well as non-recovery of telecom dues, rent and service charges amounting to Rs923.53 million.
The NTC made irregular procurement of NG Firewall Hardware, irregular contract and payment to vendors including media services amounting to Rs223 mn.Established in 1996 the NTC is a corporate body, under the administrative control of Ministry of IT & Telecom.
PSEB
In another audit report the Pakistan Software Export Board (PSEB), face objection worth more than Rs1.27 bn including unauthorised use of financial powers by its management and extending improper sponsorship to P@SHA.PSEB, an attached department of the ministry of IT & Telecom is the key organisation tasked with promoting Pakistan’s IT and software exports.Among the key objections included ‘Irregular expenditure on Exhibitions, Events, Conferences & Delegations without having KPIs and approved policy worth more than Rs 413.11 million.
The audit objection stated that the MD, PSEB approved exhibitions, events, conferences and Delegation Policy 2022, without the approval by the Board of Directors nor goals and objectives were set by the PSEB.
The other major objection was irregular investments of TDR in violation of Finance Division instructions amounting to Rs 200 million.The record of PSEB for the year 2022-24, revealed that the management invested Rs 200 million in Terms Deposit Receipts (TDR) at NBP Jinnah Avenue Branch, Islamabad. Audit observed that the amount was invested without the approval of Finance Division which was a violation.
The audit has highlighted misappropriation of around Rs110 mn to P@SHA.The audit states that Pakistan Software Houses Association for IT and ITes (P@SHA) requested PSEB in 2022 to support P@SHA for hosting Asia Pacific ICT Alliance Award (APICTA) 2022 in Pakistan that was approved.
Audit observed that P@SHA being a private association of IT companies does not fall under PSEB ambit.
The payment was made to P@SHA for sponsoring event of APICTA award which was conflict of interest as the Chairman P@SHA was the member of PSEB BoD and Finance & Audit Committee.Similarly, PSEB made irregular advance payment amounting to Rs22.73 mn to Woman Software Technology Park, Bagh AJK, as it was observed that the agreement was signed on July, 24, 2024, while the payment was made on April 02, 2024 before signing of the contract.
Besides, no joint account was opened in violation of agreement made between PSEB and Woman Software Technology Park (WSTP) Bagh and other related objections.
