AGP objects to Rs17m in rewards, allowances

The Auditor General of Pakistan (AGP) has observed that the Pakistan Telecommunication Authority (PTA) chairman and members have received irregular payments of Rs17 million in rewards and allowances.

PTA paid Rs17.2 million to its members and chairman on account of different allowances and perquisites during financial year 2023-24. This included the Eid reward and proficiency incentive of Rs9.059 million and Rs8.183 million in house rent allowance, medical allowance, utility allowance and orderly allowance, bringing the total to Rs17.242 million. Auditors noted that the members and chairman of the telecom authority were not entitled to those payments. Section 3(7) of the Pakistan Telecommunication (Re-organisation) Act, 1996 states that the member of the authority shall be paid salary and be entitled to the privileges of an officer in MP-II and the chairman shall be paid salary and be entitled to the privileges of an officer in MP-I.

Furthermore, the Finance Division (Regulation Wing) letter No F3(2)R-4/2011 dated October 31, 2023 stated that the prime minister had revised the Management Position (MP) salary package with effect from October 1, 2023 including the house rent, utilities and other perquisites. The audit observed that the members and chairman of the authority were not entitled to the Eid reward and proficiency incentive. It noted that house rent, medical, utility and orderly allowances were paid in excess of authorised ceilings admissible under MP-I and MP-II pay packages.

The audit contends that the payment of allowances, over and above the admissible amounts under MP-I and MP-II scales, reflects weak financial discipline. It reported the matter to the management and Principal Account Officer in November 2024. It was replied that the members of the authority, including the PTA chairman, had been drawing salaries in light of the Finance Division's letters dated January 17, 2007 and September 7, 2009.

Furthermore, in light of the Finance Division's letter dated July 28, 2020 and the Law and Justice Division's clarification dated August 3, 2021, the payment of allowances to the chairman and members of PTA was in accordance with the prevailing instructions of the Finance Division.

"The reply is not tenable," the auditors said, adding that the PTA members were eligible only for salary and privileges admissible in MP scales in light of directives of the Finance Division. The matter was discussed in the Departmental Accounts Committee (DAC) meeting held on December 26, 2024. DAC gave directives to club all paragraphs pertaining to the pay and allowances of PTA chairman and members, which would be reviewed by an already constituted committee, comprising DG audit P&TS, joint secretary of the Cabinet Division and PTA member (finance). Its report with findings and recommendations should be sent within three months to the Finance Division for a final decision, it said. The audit recommended the implementation of DAC directives.

PTA did not respond to The Express Tribune's request for comments.

Non-adherence to provincial quotas

According to Regulation 15(1) of PESRs 2008, the vacancies in all posts in Executive Grade (EG)-1 and above and such posts in Staff Grade (SG)-1 to SG-5, which serve the whole of Pakistan, shall be filled on an all-Pakistan basis in accordance with the merit and provincial or regional quotas prescribed by the federal government for civil posts from time to time.

PTA under the Cabinet Division appointed 41 associate engineers, assistant directors, ITOs, office assistants and junior assistants during fiscal year 2023-24. An amount of Rs43.590 million was spent on the pay and allowances of the staff appointed through direct recruitment. The audit observed the following irregularities:

PTA did not maintain the provincial quota of rural and urban Sindh as per the prescribed procedure. The sanctioned strength for the position of deputy director was 47 posts. PTA, with an 11.4% quota for rural Sindh, appointed seven deputy directors against vacancies for five posts. In the case of urban Sindh, with a 7.6% quota and clear vacancies for three posts, the PTA appointed four deputy directors.