E-Paper
Audit flags mismanagement at PunCom: Financial losses of ₹2 crore, failed investments, overpaid staff
Among the significant findings of the audit report, there was irregular payment of around ₹95 lakh in the form of retention allowance to employees under the superannuation scheme.
Glaring irregularities and gross misuse of funds have been found at Punjab Communication Limited (PunCom), Phase 7, Mohali, in the audit report of 2019-2020 that the office of the principal account general of Punjab had conducted.
The audit has pointed out a loss of nearly ₹2 crore.
Set up in 1981, PunCom is India’s premier telecom and IT equipment and solutions provider company, supplying and implementing a host of state-of-the-art telecommunications software and integrated solutions.
Among the significant findings of the audit report, there was irregular payment of around ₹95 lakh in the form of retention allowance to employees under the superannuation scheme. The audit also found that there was erring litigation that the company entered, which ended up imposing a heavy cost of around ₹111 crore. The report called these suspected losses.
PunCom, the audit report noted, also floated a Punjab Digital Industrial Limited, Mohali, as its subsidiary through an investment of ₹25 lakh. This company wound up in February 2009 and by March 31, 2008, the accumulated losses of the firm were around ₹1 crore.
‘No financial propriety observed’
“The management of the investing company did not observe financial propriety and thereafter did not follow-up, thus aggravating losses to the tune of ₹65 lakh,” the audit report said, adding that of this, ₹40 lakh was payment of doubtful loans and advances and ₹25 lakh was to set right the balance sheet.
Rajat Aggarwal, managing director of PunCom, said, “I have not seen the report yet, but in case of any discrepancies, action will be taken accordingly.”
During the test check of records for the month of April 2019, the audit report observed that PunCom had not disclosed payments made to several employees on account of driver allowance in the pay ledger/salary register and on being pointed out, the department did not furnish a reply.
The report also added that PunCom suffered another loss of ₹40 lakh for failing to properly apply and execute work for the railways leading to the forfeiture of the money it had deposited.
It also noted that the company made excess payment of gratuity to four employees in 2009 to the tune of ₹25 lakh. The company also ignored Punjab government orders to limit gratuity payment to ₹10 lakh. The report also added that the company had given undue benefits to three fresh recruits.
PunCom has also been unable to collect ₹26 crore from its debtors, raising questions on its business efficiency.
