Diversion of funds: Government tricks ECP into lifting ban

ECP will allow release of funds for schemes that have already been approved.


Zafar Bhutta March 17, 2013
The move came after the government withheld vital funds that the ECP needs to hold the elections on time. GRAPHIC: EMA ANIS

ISLAMABAD:


Forced into a corner by the government, the Election Commission of Pakistan (ECP) has decided to retract its ban on the diversion of funds for development projects that have already been approved.


The move came after the government withheld vital funds that the ECP needs to hold the elections on time.

Finance Minister Saleem Mandviwalla said that in a meeting with the Election Commission officials on Saturday, the finance ministry was asked to release the remaining Rs4 billion for holding the elections.

“We informed the Election Commission that it had placed a ban on re-adjustment of funds and therefore funds could not be released,” Mandviwalla said, adding that soon after the meeting, the poll body withdrew its ban on the diversion and release of funds.

Mandviwalla also said that Prime Minister Raja Pervaiz Ashraf had discretionary powers to allocate spending beyond budgetary allocations.

Elaborating, the finance minister said, “The prime minister had a budgetary allocation of Rs22 billion, but spending rose to Rs39 billion which was in line with the Constitution.”

He also dispelled the notion of releasing funds for political gains and said the move was not tantamount to unlawful expenditure.

He claimed that due to ECP’s ban, several projects like Diamer-Bhasha dam were affected. “The ECP, while accepting the viewpoint of the finance ministry, allowed the diversion of funds for those projects already approved and the approval of development schemes,” Mandviwalla added.

He pointed out that the caretaker government would only have the mandate to ensure the transition to the next government was as smooth as possible and any major decision on the economy would need to be taken in consultation with all political parties contesting the elections.

“Without consulting political parties, no decision would be taken by the caretaker government,” the finance minister said, adding that provinces had agreed to contribute 57% of the funds for the elections, whereas the remaining 43% would be provided by the federal government.

The federal and provincial governments agreed to share the expenditure of holding the elections and would contribute according to their shares in the 7th National Finance Commission Award.

He also reiterated that funds had been released on account of development schemes not only for the constituencies of parliamentarians of coalition partners, but also parliamentarians from opposition parties.

“These funds have not been released directly to parliamentarians but to the state institutions to complete development schemes and the in case of state institutions such as power and gas companies, they would surrender these funds if they remained unutilised by the end of this fiscal year,” he said.

Published in The Express Tribune, March 17th, 2013.

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