Parliamentary pannel seeks technical, financial audit reports of circular debt payments

A ministry official says no communication made for an audit, but an internal audit report of the amount is available.

ISLAMABAD: A parliamentary panel on Monday asked the government to share technical and financial audit report of Rs500 billion released by the finance ministry last year to to pay off the country's massive circular debt.

Senator Sughra Imam, who proposed various amendments in privatisation ordinances 2013-14, told the sub-committee on Finance and Revenue on Monday that a number of members of the Nawaz cabinet had assured the upper house of the parliament of making the audit reports of the hefty amount available. However, despite a lapse of three months, the audit reports had not been shared with the parliament.

Imam referred to statements made by ministers Khawaja Asif and Abid Sher Ali stating that an audit will be carried out.

The committee, headed by Senator Muhammad Hamayun Khan Mandokhel, asked the government to provide the internal and external audit reports of the amount.

Imam had raised the issue in the senate in December last year and had also questioned the release the sum as it was the largest such sum released in history. At the time, the chairman senate had referred the issue to the committee for further deliberation.

Meanwhile, the finance ministry claimed that no communication made in regard to preparing an audit report.

In response to a question, a ministry official said that the internal audit report of the amount is available. The committee asked the ministry to provide the report in order to ensure parliamentary oversight.

"We have to scrutinise whether the reimbursement was made transparently or not," contested Imam. The committee also questioned the government's move which it termed as "reckless prioritisation."

During legislative business, the committee also decided to issue notices to the interior ministry and the board of investment to seek a briefing on the current procedure to issue security clearance certificates to foreign companies.

Imam said that oil and gas are national assets, and expressed fear that Israeli and Indian companies could intrude in the absence of a comprehensive mechanism.

She further claimed that such companies had made an effort during the Shaukat Aziz era.

However, Secretary privatisation division Ahmad Sukhera told the committee that the government wants to deregulate the economy to enhance investment opportunities.

Replying to the lawmakers' question, he said many things in the economy are debatable and the term national security also needs to be defined.

Imam said that the system needs to be strengthened as individuals leave, but institutions live on. She proposed an amendment in the privatisation ordinance 2013 to make it necessary for officials to file a disclosure of interest.

She also suggested harsh penalties in case of mis-declaration by anyone involved in the process including advisors and consultants.

Secretary privatisation division and an official of the law ministry welcomed the proposed amendment to ensure transparency in the process. They said while such laws already exist, after deliberations they will also include the proposed amendments accordingly.

Correction: An earlier version of this article incorrectly mentioned the retired circular debt ammount as $500 billion. The error is regretted.