| GEO Pakistan|
| PAC concerned over Rs.4 bln financial irregularities in EOBI|
| Updated at: 2138 PST, Monday, May 31, 2010|
ISLAMABAD: The Public Accounts Committee (PAC) of the National Assembly on Monday expressed its deep concern over the financial irregularities of Rs 4.826 billion in Employees Old Age Benefits Institution (EOBI) and directed to hold an inquiry into the matter.
The PAC meeting held here at the Parliament House with Leader of the Opposition in National Assembly Chaudhry Nisar Ali Khan in the Chair, reviewed audit report of Ministry of Labour and Manpower for the financial year 2008-09.
The meeting was briefed that EOBI has invested 13 billion in procurement of shares of five institution including MAC PAC, Shell Pakistan, SSGCL, Bank of Punjab (BoP) and Tele Card. These were placed in strategic/core portfolio. The purpose of this category was to earn dividend but the market values of share have been reduced enormously and the institution has sustained a loss of Rs 4.826 billion.
The Audit officials informed the PAC panel that the EOBI purchased the BoP shares worth Rs 4.30 billion and further deposited Rs 1.3 billion in the bank. They said that the total portfolio of the Bank at that time was Rs 5.3 billion.
The Audit officials pointed out that there were certain clauses for strategic investment in rules which were violated.
PAC Chairman Ch, Nisar said news was being published in the media about the bank at that time then why so hefty amount was invested in the bank.
Principle Accounting Officer of Ministry of Laboure and Manpower apprised the PAC that EOBI fully followed the rules set for investment and no rules were violated in this regard. He said the EOBI has deposited Rs 1.30 billion in BoP, however the decision was taken on political ground.
The PAC also showed its displeasure over the unjustified expenditure of Rs 23.8 million on hiring of security services by Sindh Worker Welfare Board for residential accommodation.
The Committee was informed that 410 security guards including supervisors were hired for to save the properties and other installations of the Board at respective sites includes existing laboure colonies, schools, hospital etc.
The PAC panel also expressed concern over the loss of Rs 1.997 million to the Worker Welfare Board for poor planning and advance payment to the consultant.
The Audit officials informed the PAC that the said amount was paid to the consultant in advance and work on none of the 13 schemes could be started.
The meeting was attended by MNAs Yaseem Rehman, Rukhsana Bangash, Sardar Ayaz Sadiq, Riaz Hussain Pirzada, Nadeem Afzal Chan, Hamid Yar Hiraj, officials of Ministries of Laboure and Manpower, Finance, Audit department and PAC.