Revised TORs for SOEs forensic audit approved

ISLAMABAD: The Cabinet Committee on State Owned Enterprises (CCOSOEs) here Wednesday approved the revised Terms of Reference (TORs) for forensic audit of the State Owned Enterprises (SOEs).

The TORs would be followed by the Auditor General of Pakistan (AGP) Office as well as private audit firm(s) to be hired as per Public Procurement Regulatory Authority (PPRA) rules, said a press statement issued by the Finance Ministry.

According to the statement, the CCOSOEs meeting was chaired by Federal Minister for Finance, Revenue, Industries and Production, Muhammad Hammad Azhar, while among others it was participated by 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.

The summary regarding approval of Terms of Reference (TORs) for forensic audit of the State Owned Enterprises (SOEs) in accordance with the earlier decision of the CCOSOEs dated 20th Jan, 2021 was presented by Finance Division.

The Secretary 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.

The Secretary Finance further apprised that PIACL has informed that a special audit of the Pakistan International Airlines (including its subsidiaries) was conducted by the Auditor General of Pakistan.

Therefore, it was recommended that 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.