The cabinet’s decision to curb misuse of official vehicles by top bureaucrats has remained unimplemented for the last four months, as Prime Minister Yousaf Raza Gilani has yet to give his consent to the move and the delay may lead to additional expenses of Rs4 billion this year.
The premier’s withholding of the summary, which proposes withdrawal of cars in return for cash, is not only going against the spirit of the cabinet’s decision but also makes a mockery of the austerity drive, as top bureaucrats and their offspring and spouses continue to unlawfully use official cars.
In an incident, a son of a Grade 22 secretary from the most powerful District Management Group met an accident while riding the Customs Department vehicle. Earlier, it was perceived that top bureaucrats were resisting the move as many federal secretaries entitled to use only one car are using five, according to government auditors. However, the latest revelation comes as a surprise.
Sources in the finance ministry told The Express Tribune that the ministry had sent the summary after concluding deliberations much before Eidul Fitr holidays. The summary was lying at the table of prime minister, they added.
The cabinet had decided to take back cars from Grade 20 to 22 officers and allowed the finance ministry to give them cash instead.
Press Secretary to Prime Minister Akram Shaheedi had promised to give reasons for holding the summary, but did not come up with an answer by the time the report was filed.
For the current fiscal year, the government had budgeted to spend Rs3 billion on procurement of new vehicles, besides spending Rs1 billion on running the existing pool of cars. Sources said the delay may lead to procurement of new cars, as government departments and ministries have started pressurising the Finance Division to take a final decision.
The federal director general audit, in a recent meeting of the parliamentary Public Accounts Committee, said 14,000 of the 18,000 cars in 296 government departments are being misused.
The government spends an average of Rs530,000 per month on every Grade 22 officer, an amount that does not include the cost of privileges such as land and membership of elite social clubs.
The Planning Commission believes that monetisation of perks and privileges would significantly reduce government’s costs.
According to the finance ministry’s proposal, the officers of Grade 20 to 22 will be offered to buy official cars or they could procure new ones. If any officer decides to keep the car, an amount up to Rs30,000 per month would be deducted from his transport allowance.
A Grade 22 officer would be paid Rs82,000 per month in transport allowance. Out of this, he would return Rs30,000 on account of monthly installment of the car and another Rs10,000 for driver’s salary. The remaining amount would be on account of fuel and maintenance charges.
Currently, the Grade 22 officer is entitled to 360 litres of fuel valuing Rs320,000. In addition to that, expenses on maintenance of car are also borne by the government.
A Grade 21 officer would be entitled to a monthly transport allowance of Rs72,000 including cost of car and driver’s salary and Grade 20 official will get Rs62,000 per month.
The finance ministry has estimated the total cost of the scheme at Rs820 million, which is Rs180 million less than what the government would spend on maintenance and running of vehicles.
Published in The Express Tribune, October 21st, 2011.
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