Govt eyes int'l audit firm to bring transparency in PSI
Friday, 14 September 2007
The government is likely to appoint an international audit firm to scrutinise the prices quoted by the Pre-Shipment Inspection (PSI) companies over the next two months, against the backdrop of a suspected import-inspection scam, reports UNB.
Board sources said three international audit firms have submitted their tender papers as the NBR has launched bidding in this regard.
"The committee to verify the tender papers will open the tender file and all processes will be complete in the next two months," a high official of the NBR told the news agency.
But he mentioned that the government might cancel the tender, as the number of submitted tender papers is three. As per rule, the government can cancel the tender if the submitted tender papers are below four.
"It is not mandatory to have four tender papers. If the committee members are satisfied with their three tender papers, they can appoint one audit firm from these three," he said.
The government's revenue authority has tried to appoint an audit firm to ensure checks and balances in the function of the PSI companies for a couple of years now. "But due to some legal complications and tight procurement system of the government we failed to appoint the audit firm," he said.
About the payments for the audit firm, he said as the firm is international their remuneration will be obviously high.
"NBR will bear the cost. We are taking one per cent of the total import duties from the importers as PSI charge. From that charge we will cover the audit cost," he said.
The government has taken the move considering the importers' complaints about harassment and delays in getting their consignments after import valuation by the PSI companies.
Recently, the NBR served a show-cause notice to the pre-shipment inspection (PSI) company M/S Cotecna Inspection SA for their alleged irregularities in import inspections, especially regarding luxury cars.
Official sources said the NBR has served the notice seeking explanation about its alleged under-invoicing in import of luxury cars and why their licence should not be cancelled.
Board sources said three international audit firms have submitted their tender papers as the NBR has launched bidding in this regard.
"The committee to verify the tender papers will open the tender file and all processes will be complete in the next two months," a high official of the NBR told the news agency.
But he mentioned that the government might cancel the tender, as the number of submitted tender papers is three. As per rule, the government can cancel the tender if the submitted tender papers are below four.
"It is not mandatory to have four tender papers. If the committee members are satisfied with their three tender papers, they can appoint one audit firm from these three," he said.
The government's revenue authority has tried to appoint an audit firm to ensure checks and balances in the function of the PSI companies for a couple of years now. "But due to some legal complications and tight procurement system of the government we failed to appoint the audit firm," he said.
About the payments for the audit firm, he said as the firm is international their remuneration will be obviously high.
"NBR will bear the cost. We are taking one per cent of the total import duties from the importers as PSI charge. From that charge we will cover the audit cost," he said.
The government has taken the move considering the importers' complaints about harassment and delays in getting their consignments after import valuation by the PSI companies.
Recently, the NBR served a show-cause notice to the pre-shipment inspection (PSI) company M/S Cotecna Inspection SA for their alleged irregularities in import inspections, especially regarding luxury cars.
Official sources said the NBR has served the notice seeking explanation about its alleged under-invoicing in import of luxury cars and why their licence should not be cancelled.