The Public Accounts Committee’s (PAC) sub-committee on Monday reviewed audit objections concerning the Export Processing Zones Authority (EPZA) for the financial years 2010-11 to 2013-14 in a meeting chaired by Shahida Akhtar Ali, including questions over the alleged irregular appointment of Saadat S. Cheema as General Manager, reported 24NewsHD TV.
According to the audit, Saadat S. Cheema was appointed as General Manager on a one-year contract without advertisement. The audit report also questioned his appointment during a period when recruitment was reportedly banned.
The audit declared both the appointment and the payment of Rs7.385 million to the official irregular, calling the matter an indication of weak internal controls within the authority.
The committee was informed that the administration had been asked to explain the appointment in 2016. The Departmental Accounts Committee (DAC) subsequently directed the audit authorities to verify all records related to the appointment.
The DAC again ordered verification of the appointment record in 2020. Four years later, it decided to place the matter before the PAC.
However, EPZA presented a new position on the appointment in August 2026.
According to the EPZA Board, the post of General Manager North Lahore had been vacant since September 9, 2011. The board maintained that Saadat S. Cheema was adjusted against the vacant position at the ministry's direction.
The board further stated that it made the adjustment on the basis of Cheema’s professional expertise and eligibility.
During the meeting, the PAC sub-committee also reviewed an audit objection regarding EPZA's non-recovery of Rs146 million in ground rent.
Audit officials informed the committee that Rs62 million had been recovered so far.
The Special Secretary for Industries and Production said there were four cases and all four were under litigation.
Senator Bilal Mandokhail questioned whether interest had been imposed on the recovered amount.
EPZA officials said they collected ground rent annually and that the recovery had been made in dollars.
The committee convener asked how the recovery was made after the audit raised an objection to the amount.
The PAC sub-committee subsequently referred the ground rent matter back to the Departmental Accounts Committee for further consideration.
Reporter: Rozina Ali