78% of official cars misused by bureaucrats: Auditors

About 190 government departments refuse to disclose details of their official cars.

ISLAMABAD:

Nearly eight out of every ten official cars are misused by the civil servants, resulting in Rs5 billion in excessive fuel consumption every year, said Gulzar Hussain, an official at the office of the Auditor General of Pakistan.

Hussain was testifying before the parliamentary public accounts committee (PAC) on Thursday where he presented the details of government cars used by bureaucrats. He was responding to an inquiry by PAC members about the use of government vehicles.

About 18,000 cars are being used by bureaucrats working in 296 federal government ministries and departments, of which about 14,000 are being used against government policies, reported Hussain. Another 190 government departments have refused to divulge details of official vehicles in their possession.

“The laws are not implemented in letter and spirit,” said Hussain. “For example, against the authorisation for one vehicle for pool duty, various departments have reported 50 or even more cars for this purpose. Some senior civil servants use eight cars, while only legally being authorised to use one.”

Pushed by technocrats, the government has already announced that it plans on monetising the benefits of most civil servants (giving cash rather than privileges). For the three highest grades of the civil service – 20, 21 and 22 – the government will be offering Rs40,000 to Rs70,000 in cash instead of government vehicles, a decision expected to be implemented next month, subject to approval of final details by the Cabinet Division.

The government is also considering imposing a ban on the purchase of vehicles by project directors of development projects.

“Compliance of the government directives is a major issue,” said Auditor General Tanvir Ali Agha. “Even the prime government ministry, the Cabinet Division, is very poor in compliance.” He said that quarterly monitoring reports of the government’s austerity campaign revealed rampant non-compliance with the policy.

PAC orders audit of PPAF and NRSP

The PAC also ordered the Auditor General to conduct detailed financial audit of Pakistan Poverty Alleviation Fund and the National Rural Support Programme.

These two organisations have been financed by the government but are resistant to the audit.

The PAC asked the management of both organisations to extend cooperation to the audit department and threatened to summon them to the committee if they failed to cooperate.

Meanwhile, the auditors also objected to the government policy of establishing private non-profit organisations with public funds.

The PAC expressed concern over the high interest rates that these organisations are charging from the poorer of the country.

“The PPAF borrows at an interest rate of 0.75% from the World Bank and extends loans to poor at 18%,” said Hussain. “The NRSP borrows at 6% and gives loans at 18% and above.” He said the PPAF has disbursed over Rs90 billion loans so far.

“This is too high an interest rate for the poor that eventually will push more poor below the poverty line,” the PAC observed.

Published in The Express Tribune, June 17^th, 2011.