The federal government has decided to perform the forensic audit of 10loss-making State-Owned Enterprises (SOEs) from 2016 to 2018.
According to details, the Auditor General of Pakistan (AGP) will conductthe forensic audit of 5 SOEs which are Pakistan Railways, PakistanInternational Airlines (PIA), Sui Southern Gas Company Limited (SSGC),Peshawar Electric Supply Company (PESCO), and GENCO-III- Northern PowerGeneration Company Limited, and Thermal Power Station.——————————
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AGP has also been directed to complete the 1st phase of the audit of theseSOEs within three months.
Meanwhile, the federal government will hire a private audit firm to carryout the forensic audit of the other 5 SOEs.
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The federal government is in talks with two audit firms, BDO Ebrahim & Coand Ernest & Young. The former has indicated to complete the forensic auditof 5 SOEs within 10-15 months at an estimated cost of Rs. 163.05 millionwhile the latter has sought some clarifications before giving the estimatedtime and cost of the forensic audit.——————————
Pakistan Steel Mill (PSM) and National Highway Authority (NHA) have beenexcluded from the process of the forensic audit because PSM is at anadvanced stage of privatization while NHA’s losses are primarily due totreatment of funding as Cash Development Loans (CDL) and Foreign RelentLoans (FRL)
Note that Prime Minister Imran Khan in July last year had directed thecabinet to conduct the forensic audit of loss-making SOEs.
