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Auditing pension system: Minister orders probe of 600,000 ‘ghost pensioners’

Special panel to review system, point out malpractices, suggest remedial measures

Shahbaz Rana August 30, 2015

PHOTO: REUTERS

ISLAMABAD:

As the National Bank of Pakistan (NBP) backtracks on its original disclosures about the existence of 600,000 ‘ghost’ pensioners, the government on Saturday constituted a committee to review its pension system and identify malpractices.

Finance Minister Ishaq Dar expressed concern over the reports about ghost pensioners and ordered the formation of a special committee, according to a statement issued by the finance ministry. Dar also ordered the NBP to withdraw a petition it has filed in court to stop the Auditor General of Pakistan from conducting an audit.

The developments came on the heels of NBP’s claim that it had identified 600,000 ghost pensioners. However, when it faced pressure, NBP President Iqbal Ashraf took an about-turn, and blamed the media for misreporting on the matter.

Headed by Senator Saleem Mandviwalla of the PPP, the Senate Finance Committee has already called a hearing on Thursday, September 13, to probe the existence of the 600,000 ghost pensioners. The NBP had made the disclosure in a Senate Finance Committee meeting.

The finance ministry said the special committee would review the system of pensions, point out malpractices and suggest measures for revamping them. The committee will comprise representatives from the Controller General of Accounts and the Auditor General of Pakistan’s office.

Dar said the committee should also come up with proposals for simplification of pension procedures and facilitation of the pensioners. He gave a 15-day deadline to the committee to come up with its recommendations. “I wish to see an end to pensioners queuing up in long lines to receive pensions. They should receive pensions just like someone receives a regular salary,” said Dar.

Dar also directed the NBP to withdraw its court petition and prepare for an audit by the Auditor General of Pakistan. In a meeting of Public Accounts Committee, Auditor General of Pakistan (AGP) Rana Assad Amin had claimed that had the NBP allowed a statutory audit, the issue of ghost pensioners would not have surfaced.

Dar said audit was necessary for fulfilling the objectives of transparency and complete accountability as the NBP was a fully state-owned entity. The minister specially referred to 18th constitutional amendment, which had enhanced Auditor General’s powers for conducting audit and maintaining financial discipline. Strictly speaking, however, the government does not own all of National Bank. It is listed on the Karachi Stock Exchange, and approximately 20% of its shares are owned by other investors, including 10.3% by foreign investors.

AGP Amin said that capacity building of audit and accounts personnel and elimination of corrupt practices was among the top priorities currently. He said every year, through audit, the AGP effects recovery of an average of Rs48 billion. Amin said the AGP has conducted audits of World Bank, DFID, ADB, JICA and other donor-funded projects. The number of foreign funded projects audited in fiscal 2015 was 133, he said.

Published in The Express Tribune, August 30^th, 2015.

COMMENTS (6)

vicktor d'souza | 8 years ago | Reply @the Skunk: The irony is that every day one reads in broadsheets such as Dawn in their letters to Editor section of this and that civil and public servants not get their pensions for months and even years in some cases ! These people have every right to mount a class action suit on the Government, or probably successive Governments.

S.R.H. Hashmi | 8 years ago | Reply While some ‘ghost’ pensioners may be continuing to draw pensions, there is also a possibility, and a good possibility for that matter, of some officials manipulating records and drawing pensions in the name of persons long since departed, for proceeds to be shared among the participants of the scheme. And the opposition by the National Bank of Pakistan to audit by the Auditor General of Pakistan and going even to the extent of filing a petition in the court to stop the Auditor General from conducting the audit does nothing to dispel such suspicions. I would think that an institution in which government holds overwhelming majority of shares, and which had nothing to hide, would have welcomed the audit and these attempts to keep the Auditor General ‘off the premises’ could be interpreted as a fear that if allowed an access to bank’s records, what else the auditors may find. Just as well that Senate Finance Committee has already called a hearing on the subject on September 13, and Finance Minister Ishaq Dar is also following up the matter. At least the funds from which poor pensioners are paid meagre pensions should be left alone. Karachi