Auditor General of Pakistan has pointed out that receivable management of the telecommunication sector remained weak during the previous fiscal year and resulted in the non-recovery of a sum of Rs22.9 billion.
“Receivable management of telecom entities remained weak which resulted in non recovery of huge amount of Rs22.9 billion,” said the audit report on the accounts of Telecommunication sector for the audit year of 2012-13.
The first case in this regard relates to the Pakistan Telecommunication Authority (PTA) wherein the authority could not recover “outstanding dues on account of Universal Service Fund (USF) charges of Rs950.51 million.”
The report also lists as many as 20 such cases of non-recovery.
The audit report further states that PTA “did not recover an amount of Rs950.51 million on account of USF charges from the operators during the fiscal year of 2011-12. Nonrecovery of receipts reflects ineffective financial management of PTA and weak internal controls for realisation of receivables.”
According to the details, Circle Net has a balance of Rs15.6 million [as of June 30, 2012], Dancom Pakistan Private Limited has a balance of Rs2.92 million, Dvcom holds a balance of Rs6.65 million, PTCL has a balance of Rs838.3 million while Telecard Limited and World Call Telecom Limited have a balance of Rs15.97 million and Rs71.29 million respectively.
The PTA earlier in January had responded to the audit authorities saying that Circle Net had partially paid their debt amount and the balance amount was sub judice in court. Cases from Dancom Private Limited and PTCL are also pending before courts.
It further said that a show cause notice was also issued on July 10, 2012 to Telecard Limited for their balance of Rs5.19 million the matter though was still pending before the Lahore High Court.However, “audit recommended that recovered amount be verified from audit besides recovery of the remaining amount at the earliest.”
While commenting on PTA’s budget and accounts, the audit report observed that “receivable management remained a weak area as the receivables have piled up to an aggregate of Rs17.05 billion and another provision of Rs13.9 million was made against receivables during the year bringing the total provision for doubtful receivables.
Published in The Express Tribune, September 9th, 2013.