ISLAMABAD: Based on findings from the internal audit of the Central Zakat Funds, the auditor general of Pakistan disclosed in his 2009-2010 report that the institutions responsible for disbursement of billions of rupees from Zakat funds were not working optimally.
“Rs14.103 billion accumulated balance on June 30, 2009 in the bank account of Central Zakat Fund maintained by the State Bank of Pakistan indicated that the institutions responsible for the disbursement of funds were not fulfilling requirements of the Zakat and Ushr Ordinance,” the report stated.
The Ordinance promulgated in 1980 demanded that funds be disbursed as per the Shariah law to decrease poverty level and commence development schemes for poor citizens of the country.
Auditor General, while pointing out violations of the Zakat Ordinance, recommended measures to ensure full and meritorious disbursement of zakat so that it helps reduce poverty.
The auditor observed that in a large number of cases, the Health Welfare Committees disbursed zakat funds to suppliers of medicines in cash or through open cheques, which was violating the rules.
“Health Welfare Committees of national health institutions did not surrender unspent balances at the year-end, despite instructions from the Central Zakat Council. This action is tantamount to parallel budgeting and utilisation of funds by carrying forward the balance to the next financial year which is also in violation of the rules,” the report revealed.
The management of the Health Welfare Committee, in response to the objections raised by the audit, stated that instructions to surrender the unspent money were ambiguous and in some cases, not given to the management at all.
Auditor General, keeping in view the non-surrender of unspent zakat fund by the Health Welfare Committees directed the Zakat Council to improve its procedures regarding transfer of unspent balances by all the tiers of the zakat administration. “This will ensure prompt surrender of withheld zakat funds and achieve the desired objective,” the report said.
“The Central Zakat Administration established internal audit within their organisation, however the strength of the audit staff, their qualification and experience are not commensurate with the scope of internal audit. No internal audit plans, reporting channels and follow-up mechanism have so far been devised .Therefore, the internal audit needs to be strengthened and a proper procedure needs to be adopted in consultation with the Controller General of Accounts.”
Published in The Express Tribune, May 14th, 2012.
COMMENTS (4)
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We are not interested in un-spent moeny at the end of the year. We ARE interested in money that was spent and where it was spent.
My mother passed away six years ago. As always, they deduct zakat from her dividends from shares she holds..
Where does her money go??
This calls for new ministry; the Zakat Ministry!
Forget about the procedure, find where the money n why it was not surrendered.
Is PPP aware of this?