The Senate Standing Committee on Finance has raised strong concerns over the Federal Board of Revenue (FBR) regarding an auction of seized dry milk. The case involves goods reportedly valued at Rs. 54.4 million but sold for around Rs. 20 million.
Lawmakers questioned the handling of the auction process and asked for a detailed explanation. The committee directed the FBR to submit a comprehensive report within one week.
During the meeting, members expressed dissatisfaction with the difference between the assessed value and the final auction price. According to officials, Customs Enforcement had already estimated the seized dry milk consignment at Rs. 54.4 million.
However, the goods were auctioned at a much lower amount. This raised serious questions about valuation and transparency in the FBR auction system.
Senator Jan Muhammad highlighted that proper documents were available for the seized stock. Despite this, the final auction result did not match the official valuation.
Committee members also raised concerns about warehouse management. They questioned how seized goods were stored and monitored before being auctioned by the FBR.
Senator Talha Mahmood asked whether some of the 2,000 dry milk bags might have gone missing before the auction. He also inquired about reported fire incidents in FBR warehouses over the years.
He suggested that warehouse fires sometimes raise suspicions about evidence protection and irregularities. These remarks increased concerns among committee members about accountability.
The Senate panel stressed that the FBR must ensure transparency in all auction processes. They said proper record-keeping and monitoring systems are necessary to avoid such disputes.
Lawmakers also emphasized the importance of safeguarding seized goods until final disposal. Any missing items or unclear procedures could damage public trust.
The committee instructed the FBR to explain the full valuation process. Officials were also asked to provide details of storage conditions and auction procedures.
The report must also clarify whether all seized goods were accounted for before the sale. Members said clear answers are needed to ensure accountability.
The issue has triggered wider debate about governance and transparency within the tax authority. The Senate committee is expected to review the FBR report once it is submitted.
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Further action may be taken depending on the findings. For now, lawmakers are awaiting a detailed explanation from the FBR regarding the controversial auction case.
