Internal Audit questions non-disposal of confiscated goods
KARACHI: The Directorate of Internal Audit (Customs) Karachi has advised Customs Appraisement to justify the issue of non-disposing of large quantity of confiscated goods having huge amount of Reserve Price (RP).
According to law, confiscated goods are required to be disposed of through public auction after observing all formalities within the shortest possible time.
Due to non-disposal of various lots through auction, the condition of these goods deteriorates which ultimately would depreciate their value. Because of depreciation in value of stored goods, the government would suffer loss of revenue.
The Collectors usually fix the RP of confiscated goods at a higher side and when these goods are put on auction, they do not receive bids as per the RP. Therefore, these goods are not lifted in the auction.
Sources said there is a need to develop a proper system to fix the Reserve Price (RP) of confiscated goods put on auction, so that realistic RP could be fixed, which would enable timely disposal of the confiscated goods.
The Customs auction has been hijacked by a Mafia, which is a group of people present at every Customs auction and they through manipulations oust any other independent bidder. Having complete monopoly over the auction, the Customs do not receive better bids and ultimately these goods go to this cartel at through away rates.
Goods worth Rs1.15 billion are lying abandoned at KICT alone. A large number of seized and confiscated goods worth billions of rupees are lying at Karachi International Container Terminal (KICT), Pakistan International Container Terminal (PICT), Al-Hamd Container Terminal, Pak-Shaheen Terminal and Qasim International Container Terminal (QICT).