PAC panel notes non-utilisation of ministry’s grant

Orders production ministry to immediately return recovered amount to exchequer

ISLAMABAD: A subcommittee of the National Assembly’s Public Accounts Committee (PAC) has observed that the Ministry of Industry and Production took a supplementary grant of Rs86.2 million during the fiscal year 2014-15 but did not spend Rs41.2 million or the grant.

The subcommittee meeting chaired MNA Fakhar Imam on Monday reviewed audit objection to the 2014-15 spending by Ministry of Industry and Production as well as its supplementary grants.

The subcommittee expressed its displeasure when Industry and Production secretary told the panel that he was not prepared to brief it on the issue. MNA Ayaz Sadiq, a member of the subcommittee, noted that some other official should brief if the secretary is not prepared.

The panel noted that the ministry took a supplementary grant of Rs86.2 million during the fiscal year 2014-15 but did not spend Rs41.2 million of the funds. Responding to the objection, the secretary said the grant was taken during merger of the Ministry of Industry and the Ministry of Production.

Audit officials told the committee that the National Productivity Organisation (NPO) spent Rs31.1 million against the rules on energy audit of 120 textile sector units and the National Accountability Bureau (NAB) is investigating the case. They said NAB has so far recovered Rs5 million while it is trying to make further recoveries.

The ministry officials told the subcommittee that they had recovered more than Rs50 million and told NAB about the development. The funds recovered will be deposited in the national treasure, they said.

Convener of the committee said it was disappointing to note that the ministry recovered the amount 11 months ago but has not deposited it in the national treasury which, according to him, shows weakness of the system.  The committee directed the authorities to deposit the recovered amount in national treasury along with the profit obtained on the amount during the time.

The convener lamented that investigation into violation of rules was undertaken in 2019 which indicated failure of the governments and lack of improvement in system. The committee directed the ministry to complete its inquiry against two audit objections within six weeks.