Senate committee raises concerns on alleged Rs6.58 bn excessive billing by Jazz

Islamabad: The Senate Standing Committee on Information Technology and Telecommunication raised serious concern on alleged excess collection of Rs. 6.58 billion by Jazz following a quarterly tariff increase of 15 percent on mobile packages and decided to refer this case to Public Accounts Committee for further investigation.

In a committee meeting chaired by Senator Palwasha Mohammad Zai Khan, the Director General Audit informed the committee that the initial proposal was for a 3 percent increase, whereas the approved increase was 15 percent. The Federal Audit also raised concerns over PTA’s policy allowing telecom operators to increase tariffs by up to 15 percent.

Pakistan Telecommunication Authority however, maintained that all prescribed procedural requirements had been fulfilled and stated that, after reconciliation, the amount involved was approximately Rs. 920 million. The committee members expressed serious reservations regarding both the tariff increase mechanism and what they termed as potentially exaggerated audit objections. The committee was informed that the matter would be processed through the Departmental Accounts Committee (DAC) and subsequently the Public Accounts Committee (PAC).

The chairperson directed the concerned authorities to submit the complete record to enable verification of the respective claims made by Audit and PTA. She further directed that the Director Finance and Deputy Director who signed the relevant documents ensure their attendance at the next committee meeting.

 During the meeting, the convener of sub-committee, Senator Sadia Abbasi, presented the sub-committee’s report on internet connectivity and the reported disappearance of diesel from telecom towers across the country. The committee was informed that the issue of network disruption persists and that the prime minister has constituted a committee to ensure network availability and reduce the impact of load-shedding on internet and mobile services. The Senate committee adopted the sub-committee’s report.

 The committee also raised the reported change of Ufone’s name following the Ufone-Telenor merger. PTA informed the committee that any change of name would be made in accordance with applicable rules and regulations and after obtaining the necessary approvals from the federal government. The committee was further informed that consultations among the relevant stakeholders were currently underway.

 Discussing the prolonged pendency of LDI/FLL court cases, the committee expressed concern over delays, particularly in cases involving significant financial liabilities. PTA informed the committee that its jurisdiction had been challenged in these cases and that 38 cases were currently pending. PTA further apprised the committee that the Telecom Tribunal had now been constituted and was fully functional, with most pending cases transferred to the tribunal for adjudication.

 The chairperson directed PTA to submit a comprehensive report on all pending cases, including the total financial amount involved in each case.

 The committee was also briefed on the reported shift of Pak Datacom’s satellite services to a foreign satellite, which raised concerns regarding national security. The chairperson questioned the rationale behind the shift. The committee was informed that limitations in national spectrum capacity were the primary reason for the move. Officials further explained that YaSat is a UAE-based satellite company with majority government shareholding in the UAE.

 The committee stressed the importance of safeguarding national security and directed that clients be appropriately informed about the use of foreign satellite infrastructure. The chairperson also recommended that the matter be audited through the relevant forum, including NITSB.

The meeting was attended by Senator Kamran Murtaza, Senator Pervaiz Rashid and Senator Saadia Abbasi.