No cheque issuance in KMC without payment guarantee

July 12, 2015 Off By Web Desk

KARACHI: Karachi Metropolitan Corporation (KMC) has with the approval of the KMC administrator ordered that no cheque should be issued unless its payment was guaranteed and in case of bouncing of cheque, the cheque issuing authority would be suspended without further information.

This action has been taken after such reports to the administrator KMC that the cheque issued by KMC were being dishonored which was a matter of shame for the city organization and it also reflected the lack of proper financial management and accounting.

In another order issued with the approval of competent authority, minor and essential payments were allowed in KMC.

This may be noted that in order to have austerity and control over expenditures, all payments except salaries and pensions in KMC were stopped vide order no. PS/MC/KMC/202/2015 on 1/7/2015.

It has, however, been reported to the administrator KMC by the metropolitan commissioner, that even minor and essential payments were not being made which was creating administrative issues.

It was therefore decided that minor and essential payments would be allowed and such assertion was to be made with through covering letter to the relevant bank by the metropolitan commissioner, KMC.