Science & technology: Rs550m irregularities surface in ministry

Chairman of the PCRWR deposited the amount in a private bank account in 2006-07.


Shahbaz Rana July 05, 2012

ISLAMABAD:


In a blatant violation of rules, the chairman of the Pakistan Council of Research in Water Resources (PCRWR) deposited Rs550 million – the funds which were actually meant to install water filtration plants – in a private bank account at zero interest rates in ‘return for personal favours’.


The malpractice took place during 2006 and 2007 but the parent ministry of PCRWR, Ministry of Science and Technology, has swept the issue under the rug for the last five years.

The misconduct surfaced on Wednesday at a meeting of the Public Accounts Committee (PAC) when the audit department sought help of Parliament’s accountability arm to bring this practice to an end.

Such practices have been observed in other departments of the ministry despite clear instructions of the federal government to deposit surplus funds in government accounts, according to audit officials.

Headed by Nadeem Afzal Chan, the PAC ordered an inquiry against the former chairman despite various attempts by the Science and Technology Secretary Akhlaq Ahmad Tarar to convince the panel to reach a settlement.

Between 2006 and 2007, a sum of Rs555.3 million was given to the PCRWR for the execution of a safe drinking water project. However, immediately after receiving the funds, the chairman opened a current account in a commercial bank in Islamabad and deposited the money.

Apparently, the finance ministry was also involved in retaining funds meant for development projects in private accounts.

According to the audit department, the finance ministry released the last tranche of development funds for the fiscal year 2005-06 on the last day of the financial year, consequently rendering it impossible for the department to spend the money.

In addition to the safe drinking water project, the PCRWR also deposited Rs56.5 million for six other development projects in various accounts.

An official of the finance ministry told the PAC that the science and technology ministry and its allied departments were not framing rules for ensuring financial discipline and were spending money according to their ‘own will’. Hence, the PAC directed the ministry to frame financial rules within a month’s time.

An audit official revealed that another allied department of the science and technology ministry, the Pakistan Science Foundation (PSF), had long been unlawfully hiring legal advisers at hefty packages.

“The incumbent chairman of the PSF has illegally appointed his relative Chaudhry Amjad as a legal adviser,” he revealed.

The audit official said the law ministry has also opposed the illegal appointments of legal advisers. 

Published in The Express Tribune, July 5th, 2012.

COMMENTS (3)

Wolfie_Loves_kulfi | 11 years ago | Reply

it wont make sense India / china are spending billions of Dollar on R&D

and befitting from R & D spin off

where does Pakistanstand on this giving Rs 550 million to R&D

it is pouring a glass of water in desert more spending should be done

AV Bhagowal | 11 years ago | Reply

I am surprised the Finance Diivision officials are asking the public sector department to make rules for placing funds in banks whereas the rules of the Govrnment are quite clear.All surplus funds are to be placed in banks featuring on the schedule issud by the Ministry of Finance.Moreover, the projects funds are released only against work done or against payment due in accordance with some utilization framework.There is something amiss in the monitoring or control system for the financial working of the public sector,including corporations which claim autonomy in these matters but are misusing public money.I am not suggesting complete control but a procedure by which at least government funds are channelized and used in a prescribed manner and not on the whim of the chief executive or the weak boards/council.This would also eliminate the interference of political leadership in posting of incompetent but compliant people to such bodies.

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