Non-execution of agreement causes Rs23m loss to PBC
By: Javaid-ur-rahman
ISLAMABAD — The non-execution of the agreement for the marketing rights of commercial time in Pakistan Broadcasting Corporation (PBC), caused a cumulative revenue loss of Rs23.375 million.
The non-execution has deprived the corporation of multi million loss, “ revealed an audit report (2008-09), made available to TheNation. The audit report said that Pakistan Broadcasting Corporation (PBC) Board of Directors in its meeting held on April 25, 2009 decided that marketing rights of commercial time on FM-101 (8 units) may be re-bid either by offering airtime of one station or group of stations and bidding process should be completed before May 15, 2009.
The marketing rights of the above-mentioned FM stations have been sold to MS CCP, Karachi at an annual value of Rs56 million. The previous contract executed in January 2006 for the period from January 1, 2006 to May 31, 2009. Thus PBC management was well aware of the expiry of the contract in 2006, said the report.
It may be mentioned here that keeping in view the above said circumstances BoD had made decision as to initiate the bidding process. However, the management failed to finalise the execution of agreement after the lapse of four months, up till now, said the report. Resultantly, the audit report said, the corporation had been deprived of revenue income of over Rs18 million including monthly revenue income as per the previous contract and cumulative loss of revenue up till October 2009 (5 months).
The audit report also recommended investigation into the reason for the delay in initiation of the process, despite the fact that the management was well aware of the situation. The loss may get regularized from the Ministry of Finance.
The audit report in Para-4 also revealed the loss of Rs7.947 million caused by suspension of Broadcasting CCP commercial. The report mentioned that the BoD in its 362nd meeting had written off the loss. The management action towards stoppage of airtime of the party and written off loss by the BoD is held irregular in audit report.
The audit also required action to investigate the matter with a view to knowing the causes of non-inclusion of effective clauses in agreement to secure the PBC interests like bank guarantee and imposing penalty on delay in payment against the party concerned.
Source: The Nation
Date:5/31/2010
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