Friday July 30, 2010 Mashriq Group of Newspapers         Editor-in-Chief Syed Ayaz Badshah
 
 

Banks to recover billions from borrowers: PAC informed

ISLAMABAD: Special Committee of the Public Accounts Committee of National Assembly on Thursday was briefed about the non-recovery of loans worth billions of rupees by different sectors functioning under Ministry of Finance and directed to speed up the recovery process so as to bring back the borrowed money in national exchequer.

The meeting which was convened under the chairmanship of Zahid Hamid reviewed the audit reports of Zarai Taraqiati Bank Limited (ZTBL), Small and Medium Enterprises Bank (SME), House Building Finance Corporation (HBFC) and Industrial Development Bank of Pakistan (IDBP) for the audit year 2001-2002.

The audit officials informed the committee that Zarai Taraqiati Bank Limited Model Branch, Lahore advanced loans amounting Rs59.489 million to six loanees during 1989 to 1994 for establishment of commercial units.

It was added that these loanees did not repay the dues of the Bank despite lapse of 5 to 14 years and thus the recoverable amount including mark-up and penal mark-up stood at Rs107.453 million.

The Bank management replied that it has already recovered Rs19.815 million against the recovery of Rs4.4 million and added that out of six project loan cases three have been settled under SBP settlement scheme.

Zahid Hamid instructed the concerned officials to keep audit informed about the installments.

In other audit paras, ZTBL also bore a loss of Rs41.658 million, non-recovery of Rs7.480 million seasonal loan, non- recovery of loan Rs1.551 million due to disbursement against forged documents and non-recovery of Rs23.746 million on account of mis- utilized tractors/tube wells loans.

The audit officials informed the committee that Small Business Finance Corporation (merged in SME Bank) disbursed loans of Rs8.904 million to 49 loanees for setting up business during 1973 to 1996, but the borrowers did not pay their liabilities even after the expiry of loans repayment period, thus an amount of Rs14.564 million stood recoverable on June 30, 2001.

The audit pointed out that there was irregular investment of Rs10 million in a private bank and non-recovery of profit of Rs4.278 million by House Building Finance Corporation (HBFC).

Reviewing the audit reports of Industrial Development Bank of Pakistan (IDBP), it was briefed to the committee that the Bank had to bear a loss of Rs1.08 billion due to loan cases written off.

The IDBP also suffered losses of Rs106.311 million, loss of Rs102.932 million, loss of Rs90.395 million, Rs42.375 million and Rs32.106 million due to non-recovery from different borrowers.

The committee clubbed all the paras and directed to present a detailed report of the recoveries to audit officials. - APP

 
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