Award of contract: PAC volte-face on BISP irregularity
Shehbaz retracts on FIA probe after ex-PM's opposition
In this file phoot, Leader of the Opposition in the National Assembly Shehbaz Sharif chairs a meeting of the Public Accounts Committee. PHOTO: PID
ISLAMABAD:
The Public Accounts Committee (PAC) on Friday left a question mark over its own impartiality as it reversed a decision to send a dubious multibillion rupees contract case to the Federal Investigation Agency (FIA) for a probe because of opposition by former premier Raja Pervaiz Ashraf.
However, the PAC called the National Accountability Bureau (NAB) to give a briefing on a six-year delay in finalisation of an inquiry into Rs4.8 billion irregular award of contracts by the Benazir Income Support Programme (BISP) in 2012.
This is the second time, the PAC, whose chairman, Shehbaz Sharif, is also facing a NAB probe, summoned the top accountability body. The PAC had decided to summon NAB earlier also but had later dropped the idea.
During the tenure of the Pakistan Peoples Party (PPP) last government in 2010, the BISP then led by Farzana Raja had irregularly given Rs2.74 billion contract to the State Life Insurance Corporation in violation of the Public Procurement Regulatory Authority (PPRA) rules.
The incumbent BISP secretary also admitted before the PAC that the contract had been awarded in violation of rules and the prices were also changed after award of the contract.
After hearing the facts, Shehbaz Sharif directed that the matter be referred to the FIA with directions to probe the matter and give a report in two weeks. However, Ashraf forcefully defended the BISP position and claimed that there was no financial loss in the case and matter should not be referred to the FIA.
"Such investigations would bring a bad name and tomorrow there will be headline in the press and the TV channels would scream that another billions of rupees scam surfaced," said the former PM while defending the alleged irregularity committed during his government.
Ashraf alleged that the Auditor General of Pakistan (AGP) is bringing cases of benign nature to the PAC. He said he can also point out hundreds of irregularities committed by the AGP department.
Due to resistance offered by former PM, the Pakistan Tehreek-e-Insaf's (PTI) Fakhar Imam proposed an escape route for the PPP. Imam suggested that the matter should be referred back to the Departmental Accounts Committee, headed by the BISP secretary, with a direction to give a report.
Shehbaz endorsed Imam's proposal and reversed his own decision to send the case to the FIA. He ignored the protest lodged by the AGP Javed Jahangir who argued that the PAC is diluting its authority by indulging in arguments whether there was any financial loss in irregularly awarded contract.
PAC to grill FIA over dubious clean chit in contract case
"The argument that only cases causing financial loss to the exchequer should be taken up is against the strategic objective of ensuring transparency in public procurement deals," said AGP Jahangir.
The episode underscored the apprehensions that the current PAC may compromise its integrity due to some members who are accused of corrupt practices and are facing inquiries by NAB and the FIA.
Raja Pervaiz Ashraf has also faced NAB inquires in rental power plants cases. The PTI's Munaza Hassan questioned why Ashraf was defending the BISP's faults.
Shehbaz reversed his decision despite agreeing to the viewpoint of the AGP and said: "Without investigations no one can determine whether there was corruption in deals that were awarded without following PPRA rules".
In the same meeting, the PAC also reversed its decision of summoning Farzana Raja in another case in which the BISP awarded Rs4.8 billion contracts without following PPRA rules.
On proposal of Munaza Hassan, Sherry Rehman who presided over the PAC meeting in absence of Shehbaz, had directed to summon Raja. But after intervention of the Pakistan Muslim League-Nawaz (PML-N) MNA Sheikh Rohail Ashghar the decision was reversed.
NAB case
The PAC chairman directed NAB to give a briefing in a case of Rs4.8 billion pending inquiry against the BISP. NAB had initiated inquiry six years ago on allegations that the BISP gave advertisement contracts without following PPRA rules.
NAB Director Izhar Awan said the matter had been pending due to lack of availability of record. "In my case, NAB got case related record in seconds and it is keeping me in custody on grounds that I can destroy the relevant record," said Shehbaz while criticising the bureau for six-year delay.
The PAC also snubbed the PPRA managing director for his ill-preparedness in a case related to the New Islamabad International Airport.
The Public Accounts Committee (PAC) on Friday left a question mark over its own impartiality as it reversed a decision to send a dubious multibillion rupees contract case to the Federal Investigation Agency (FIA) for a probe because of opposition by former premier Raja Pervaiz Ashraf.
However, the PAC called the National Accountability Bureau (NAB) to give a briefing on a six-year delay in finalisation of an inquiry into Rs4.8 billion irregular award of contracts by the Benazir Income Support Programme (BISP) in 2012.
This is the second time, the PAC, whose chairman, Shehbaz Sharif, is also facing a NAB probe, summoned the top accountability body. The PAC had decided to summon NAB earlier also but had later dropped the idea.
During the tenure of the Pakistan Peoples Party (PPP) last government in 2010, the BISP then led by Farzana Raja had irregularly given Rs2.74 billion contract to the State Life Insurance Corporation in violation of the Public Procurement Regulatory Authority (PPRA) rules.
The incumbent BISP secretary also admitted before the PAC that the contract had been awarded in violation of rules and the prices were also changed after award of the contract.
After hearing the facts, Shehbaz Sharif directed that the matter be referred to the FIA with directions to probe the matter and give a report in two weeks. However, Ashraf forcefully defended the BISP position and claimed that there was no financial loss in the case and matter should not be referred to the FIA.
"Such investigations would bring a bad name and tomorrow there will be headline in the press and the TV channels would scream that another billions of rupees scam surfaced," said the former PM while defending the alleged irregularity committed during his government.
Ashraf alleged that the Auditor General of Pakistan (AGP) is bringing cases of benign nature to the PAC. He said he can also point out hundreds of irregularities committed by the AGP department.
Due to resistance offered by former PM, the Pakistan Tehreek-e-Insaf's (PTI) Fakhar Imam proposed an escape route for the PPP. Imam suggested that the matter should be referred back to the Departmental Accounts Committee, headed by the BISP secretary, with a direction to give a report.
Shehbaz endorsed Imam's proposal and reversed his own decision to send the case to the FIA. He ignored the protest lodged by the AGP Javed Jahangir who argued that the PAC is diluting its authority by indulging in arguments whether there was any financial loss in irregularly awarded contract.
PAC to grill FIA over dubious clean chit in contract case
"The argument that only cases causing financial loss to the exchequer should be taken up is against the strategic objective of ensuring transparency in public procurement deals," said AGP Jahangir.
The episode underscored the apprehensions that the current PAC may compromise its integrity due to some members who are accused of corrupt practices and are facing inquiries by NAB and the FIA.
Raja Pervaiz Ashraf has also faced NAB inquires in rental power plants cases. The PTI's Munaza Hassan questioned why Ashraf was defending the BISP's faults.
Shehbaz reversed his decision despite agreeing to the viewpoint of the AGP and said: "Without investigations no one can determine whether there was corruption in deals that were awarded without following PPRA rules".
In the same meeting, the PAC also reversed its decision of summoning Farzana Raja in another case in which the BISP awarded Rs4.8 billion contracts without following PPRA rules.
On proposal of Munaza Hassan, Sherry Rehman who presided over the PAC meeting in absence of Shehbaz, had directed to summon Raja. But after intervention of the Pakistan Muslim League-Nawaz (PML-N) MNA Sheikh Rohail Ashghar the decision was reversed.
NAB case
The PAC chairman directed NAB to give a briefing in a case of Rs4.8 billion pending inquiry against the BISP. NAB had initiated inquiry six years ago on allegations that the BISP gave advertisement contracts without following PPRA rules.
NAB Director Izhar Awan said the matter had been pending due to lack of availability of record. "In my case, NAB got case related record in seconds and it is keeping me in custody on grounds that I can destroy the relevant record," said Shehbaz while criticising the bureau for six-year delay.
The PAC also snubbed the PPRA managing director for his ill-preparedness in a case related to the New Islamabad International Airport.