A section of Press has carried a news item on 14-05-2015 pertaining to the privatisation of PTCL, as discussed in the meeting of the Public Accounts Committee (PAC) of the National Assembly of Pakistan on 13-05-2015. The factual position of the case is as follows:-
- The said meeting of the PAC was about review of Audit Paras, and Principal Accounting Officers (PAOs) of all the Ministries / Divisions were invited to update the PAC on the matter.
- While reviewing the case of Privatisation Commission (PC), PAC had inquired about the reasons for non-recovery of the outstanding payment to be made by M/s EIP International Pakistan (EIP), and the extent of M/s EIP share-holding in PTCL. The PAC was informed that M/s EIP had entered into an Agreement with the Government of Pakistan (GoP) in 2006 wherein M/s EIP was sold 26% of the GoP share-holding in PTCL alongwith transfer of management control in the Company, while approximately 62% of PTCL share-holding remained with GoP. After discussion on the subject, the PAC decided to get a detailed briefing from the PC regarding privatisation of PTCL.
- Furthermore, it is elaborated that at the time of 26% share transfer to M/s EIP in 2006, most of the 3248 properties were occupied by Pakistan Telecommunication Company Limited (PTCL) but not mutated in its name from its predecessors, i.e. (T&T, PTC and Private Land Owners). Accordingly, under the Share Purchase Agreement (“SPA”) signed with the buyer (M/s EIP), the GoP agreed to mutate/transfer clean titles of 98% properties by 12-01-2007 and 100% by 12-01-2008 in favor of PTCL and not M/s EIP. Payment of balance installments by M/s EIP was contingent upon the transfer of 3248 properties in favor of PTCL. At present, all properties which can possibly be transferred to PTCL stand transferred to it. The Privatisation Commission and M/s EIP are now in the final stage of concluding the issue of outstanding payment by M/s EIP.