ISLAMABAD: Karachi Port Trust (KPT) has invested more than Rs 27 billion from pension and provident funds of the employees of the KPT in national saving schemes without the prior permission of the Government of Pakistan.
Auditor General of Pakistan said that investments made with the national savings in violation of the government instructions.
According to the report, the management of Karachi Port Trust invested more than Rs27 billion in national savings and Rs18.5 billion as deposits in bank accounts.
KPT has invested Rs2108 million in Defense Saving Certificates, Rs6000 million in Pakistan Investment Bonds, Rs15,787.00 million of pension funds in Defense Saving Certificate and Rs3,500.00 million of provident funds in Pakistan Investment bonds.
Auditor General said that the investment made as deposits in bank accounts is not covered under the KPT Act, because Section 69 of the Karachi Port Trust Act, 1886 states the board may invest any balance in public securities and may sell the securities from time to time, and reinvest the proceeds in other such securities or credit the same to the funds of the board.
But the money so invested by the board shall not exceed such amount annually, or in the aggregate, as shall be prescribed by the government. The federal government has yet not prescribed the limit of investment and decision of the board has not provided by Karachi Port Trust.
Auditor General has directed and recommended that approval of the federal government for the limit of investment should be obtained and corrective measures may be taken for making an investment in accordance with the provision of the KPT Act.