ISLAMABAD: The Public Accounts Committee on Wednesday declared that the National Telecommunication Corporation (NTC) had violated the Constitution by failing to deposit its surplus profit s into the Federal Consolidated Fund and by incurring unauthorised expenditures worth billions of rupees.

Members of the committee also criticised the corporationfor providing poor services and operating parallel administrative systems that undermined official procedures.

`Being a strategic organisation does not give NTC the licence to disregard rules, no matter what hybrid system is introduced in the country,` remarked MNA Naveed Qamar.

Lawmakers expressed further frustration upon learning that the NTC had not prepared its financial statements for three consecutive years, from 2021-22 to 2023-24.

PAC, chaired by MNA Junaid Akbar Khan, convened to review multiple audit objections relating to the Ministry of Information Technology and National Telecommunication Corporation (NTC).

The committee examined audit findings that NTC spent Rs5.63 billion during FY2022-23 without budgetary approval. `Pakistan suffers from Rs10tr in annual corruption,` MNA Masti Khel alleged. The committee called for a detailed report within a month.

The PAC also discussed irregular payments and recruitments by NTC. Audit officials revealed that NTC distributed Rs94m in bonuses to employees without seeking approval from either the Finance Division or its own management board.

The committee directed that these bonuses be recovered within a month.

Regarding recruitment practices, the audit noted that 14 employees were appointed via internal circulationinstead of open advertisement. Mr Mastikhel demanded their termination, and the matter was referred to a subcommittee led by Syed Naveed Qamar.

Separately, the committee raised concerns over tax exemptions on sugar imports. Members accused the Federal Board of Revenue (FBR) of favouring specific groups by reducing sales tax from 18 per cent to 0.25pc and waiving the 3pc value-added tax on 500,000 tonnes of imported sugar.

`This is nothing but looting the public to benefit a few,` said MNA Masti Khel.

Chairman Junaid AkbarKhanannounced that the FBR chairman and commerce secretary would be summoned to the next meeting to explain the policy.

Audit officials informed the committee that the Islamabad IT Park project, launched in 2017 with assistance from the Korean Exim Bank, was supposed to be completed by 2022. However, progress remained slow, and the project was not even initiated by the end of 2021.

Ministry of Information and Technology and Telecommunication Secretary Zarrar HashamKhan explainedboththe consultant and contractor were Korean firms, and work remained sluggish into early 2024. Despite the delays, the ministry claimed the project cost remained unchanged, with no cost overruns.

Committee members questioned who would be held accountable for the lost time. The ministry assured the committee that the project would be completed and inaugurated by the end of 2025. It was noted that the project cost had been revised to Rs13.73bn, mainly due to the devaluation of rupee. The committee sought a comprehensive report within a month.

Audit briefs also highlighted concerns over 12 Public Sector Development Programmes (PSDP)-funded projects where 74pc to 100pc of allocated funds had been spent, but physical progress ranged between only 5pc and 56pc.

The ministry maintained that all projectshad sincebeen completed. However, lawmakers expressed frustration. `This farce keeps happening,` remarked MNA Sanaullah Khan Masti Khel. Committee members insisted that responsibilities must be fixed and warned Zarrar Hasham Khan that a letter would be sent to the prime minister if no action was taken. A report on the matter was demanded in 15 days.