ISLAMABAD:The Board of Directors of the Shalimar Recording and Broadcasting Company Limited (SRBC) has revoked the agreement between the SRBC and M/s Sports Stars International (SSI) following gross violation of the clauses of the agreement by the later, which resulted in a default of nearly Rs. 580 million by M/s SSI, said a press release issued Tuesday.
Secretary, Information and Broadcasting Division, who is also the Chairman of the Board of Directors of SRBC, has referred the matter to National Accountability Bureau (NAB) for assisting in the recovery by initiating a case in accordance with the Section 9 (A) (VIII) Sub-Section 5R of the NAB Ordinance.
It may be recalled that an Airtime Rental Agreement was signed between the SRBC and M/s SSI in May 2005 for three years and extended multiple times till 2017. The M/s SSI was, by virtue of this agreement, bound to pay Rs.37.50 million monthly to SRBC in addition to various taxes payable to the Government. However, despite repeated assurances given by M/s SSI, it failed to pay the requisite amount and the arrears swelled up to Rs. 580 million. Consequently, it became difficult for the organization even to pay salaries to its employees, besides carrying out their normal routine functions.
Taking cognizance of the dismal state of affairs, resulting from M/s SSI’s failure to fulfill its contractual obligations, the Secretary Information and Broadcasting Division forwarded the matter to the National Accountability Bureau for recovery of the colossal defaulted amount, which is expected to initiate legal proceedings in accordance with the law of the land very soon.