State Life Insurance has no real estate management policy, AGP

Islamabad:      The Auditor General of Pakistan (AGP) has observed and objected that State Life Insurance Corporation of Pakistan (SLIC) manages real estate properties worth Rs32 billion across the country, but there is no real estate management policy/SOP to do it effectively.

While reviewing the performance report of SLIC covering the period 2015-16, the AGP observed that managing immovable properties with a volume of Rs32 billion critically requires a comprehensive real estate management policy or SOP, which is so far absent. The Board of Directors failed to update the required manual, which falls short to provide adequate security to public’s investment. Therefore, the real estate department for SLIC failed to achieve the revenue targets being set for the financial year in question.

Key audit points

• Absence of manual/SOP/policy for real estate/risk management found in four cases
• Blockage of funds with value of Rs272.452 million found in two cases
• Non-production of assets in two cases
• Non-transfer of properties titles in two cases
• 437 million loss due to non-traceable decreed assets of tenants

Key recommendations by AGP

• to review policies for the smooth running of the affairs of real estate division and overview of purchase/sale of SLIC properties
• review of the selection process of architects/consultants for new running projects
• overview of the pending tenancy/recovery and litigation matters
• review of the selection process of contractors for construction of projects

Overview and redress of pending issues related to civil, electrical, mechanical and electronics.

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• Insurance Companies in Pakistan