STAFF REPORT ISB: Public Accounts Committee (PAC) in its recent meeting has showed its utter displeasure over the contribution of 0.5 percent share to the exchequer out of total profitability of National Engineering Services Pakistan (Nespak) and directed the Ministry of Water and Power to revamp its Board of Directors.
The meeting chaired by Syed Khurshid Shah examined the Nespak audited accounts for 2010-11.
An audit official observed that Nespak earned Rs 64 billion and its contribution to government kitty is Rs 1 billion. He further said that Nespaks profit in 2011-12 stood at Rs 890 million but it contributed only Rs 1.5 million to national exchequer.
The audit further observed that the operating profit ratio decreased from 23.39 percent in 2007-08 to 21.33 percent in 2008-09, which indicated that the company had not been able to control its administrative costs.
Secretary Water and Power Younus Dagha assured the committee that he would look into the affairs of Nespak and report back to PAC in the first week of March.
Chief Financial Officer (CFO) Nespak informed the committee that the balance sheet of the firm showed Rs 1.44 billion profit with Rs 8 billion in reserved accounts which also include receivables.
The committee further directed the ministry to expedite the recovery of their dues from government departments.