Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar, chaired the meeting of Cabinet Committee on State-Owned Enterprises (CCOSOEs) today.
Finance Division presented a summary before the Committee regarding approval of Terms of Reference (TORs) for a forensic audit of the State-Owned Enterprises (SOEs) in accordance with the earlier decision of the CCOSOEs dated January 20, 2021.
The Secretary of Finance presented revised TORs for forensic audit by the AGP Office and private Audit firm(s) to identify gaps with a clear focus on suggesting improved procedures for quality assurance and cost minimization.
The forensic audit will also identify circumstances leading to losses incurred by SOEs, besides identifying suspicious and fraudulent transactions (if any) for fixing responsibility.
After due deliberation, the Committee approved the revised TORs for a forensic audit of the State-Owned Enterprises to be followed by the AGP Office as well as private audit firm(s) to be hired as per PPRA rules.
The Secretary of Finance further apprised that PIACL has informed that a special audit of Pakistan International Airlines (including its subsidiaries) was conducted by the Auditor General of Pakistan.
Therefore, it was recommended that a forensic audit of the PIACL may be carried out through a well-reputed private sector firm after following PPRA rules. The Committee considered and approved the said proposal.
The Committee stressed to exercise due diligence and complete the process of forensic audit at the earliest to expedite the process of bringing reforms in SOEs.
Federal Minister for Privatization, Mohammad Mian Soomro, Advisor to the Prime Minister for Commerce, Abdul Razak Dawood, Advisor to the Prime Minister for Institutional Reforms and Austerity, Dr. Ishrat Hussain, and SAPM on Revenue, Dr. Waqar Masood, also participated in the meeting.