NAB to probe into Rs329b FCF payments
A sub-committee of the parliamentary spending watchdog on Wednesday handed over the issue of direct payments worth Rs329 billion from the Federal Consolidated Fund (FCF) in violation of rules to the country’s top anti-graft body.
The Public Accounts Committee’s sub-panel has sought a report from the National Accountability Bureau on the matter within four months.
The sub-committee, which met with its convener MNA Munaza Hassan in the chair, reviewed the objections on the audit paras of the Finance Division for 2014-15.
The audit officials told the committee that direct payments worth Rs329 billion were made from the FCF in violation of rules on the advice of the Finance Division.
Committee member Shiraz Mehmood suggested that the matter should be discussed in the central PAC.
The special finance secretary told the committee that the matter related to procedural complications.
The convener observed that as a large amount of money was involved, the matter must be investigated. The committee then forwarded to issue to NAB and sought a report in four months.
Senator Mushahid Hussain Syed raised the issue of subsidies granted on wheat and sugar, maintaining that the system was flawed.
The audit officials told the senator that they had also prepared a para on the subsidies.
On Syed’s insistence, the committee sought details on the direct subsidies on wheat and sugar.
While examining another audit objection, Syed noted that the principal accounting officer of the finance ministry at that time was Dr Waqar Masood, who was now a special assistant to the prime minister.
“If we summon him, the facts could be ascertained before four months,” he added.
The committee also reviewed the matter of the Competition Commission of Pakistan being unable to recover the fines it had imposed.
The Public Finance Management Act, 2019 was promulgated on July 1, 2019 to comply with provisions of Article 79 of the Constitution of Pakistan.
It stipulates that the custody of Federal Consolidated Fund, payment of money into that fund, withdrawal of money therefrom, custody of other money received by or on behalf of the federal government, their payment into and withdrawal from the public account of the Federation and all matters connected with or ancillary to the matters aforesaid shall be regulated by an Act of parliament, or until provision in that behalf is so made by rules made by the president.
Under Section 22 of the Act, the operation of the Federal Consolidated Fund and public account of the Federation vested in the Finance Division under the overall supervision of the federal government.
According to provisions of Sections 30 of the Act, the Finance Division should, with the approval of the federal government, notify rules to prescribe an effective cash management system for all public entities and special purpose funds, leading to a treasury single account.
Section 31 of the Act provides that the Federal Consolidated Fund account should be maintained in the State Bank of Pakistan and any other such bank accounts may be opened, as required by the Finance Division from time to time, in accordance with the SBP Act 1956.