NTC Suffers Rs. 19.8 Million Loss from Poor Investment Decisions: Audit

The Auditor General of Pakistan has found that the National Telecommunication Corporation (NTC) incurred a financial loss of Rs. 19.8 million due to oversight issues. The loss was incurred due to accepting lower profit rates on investments and prematurely withdrawing funds without proper internal approvals. The findings point to weak financial oversight and procedural lapses inside the state-run telecom services provider. According to the audit, the NTC Investment Committee had initially approved placing Rs. 1.2 billion with a private bank at a profit rate of 20.35% per annum, even though the Bank of Punjab had offered a higher rate of 20.50% for a shorter-term deposit. The failure to opt for the better return resulted in a potential loss of Rs. 4.1 million. The report adds that, just two months later, Rs. 250 million was withdrawn prematurely from a private bank account by senior NTC officials without formal approval from the Investment Committee. The remaining Rs. 950 million was then reinvested in the same bank without seeking fresh competitive bids, causing an additional Rs. 15.69 million in financial impact. Audit officials stated that the investment decisions and withdrawals were not ratified by the NTC Management Board, violating the organization’s own investment policy. While NTC management claimed the decision was taken for operational needs and with verbal committee consent, auditors rejected the justification as procedurally insufficient. The matter was discussed at a Departmental Accounts Committee (DAC) meeting in December 2024, but the review could not be completed. The Audit Directorate has recommended a formal inquiry to fix responsibility and recover the loss to the public exchequer, signaling that the issue remains unresolved and under official scrutiny.