Military yet to probe Rs34m NLC payment

AG office wants army court to inquire why Bagh Garrison paid the amount in 2008-9.

ISLAMABAD:

Military authorities are yet to probe an unauthorised payment of Rs34 million made to the National Logistic Cell (NLC) by the engineer of Bagh Garrison in financial year 2008-09.

The Auditor General of Pakistan (AG) had asked military authorities to investigate why the amount was paid to the NLC by the Bagh Garrison in violation of rules.

The AG office had pointed out in 2008-9 that the payment was unauthorised, as the cheque for Rs34 million was issued to the NLC after the closing of the financial year, without a bill book number or any pre-audit by the accounts department of the said military unit.

The military authorities remained silent over this payment to the NLC, an army-run commercial venture, although the AG office raised objection to the transaction in its reports for the following four fiscal years.

The Departmental Account Committee (DAC) of the AG office took up the issue following objection by auditors.

The DAC directed the concerned department to conduct an inquiry into the matter through a military court, presided over by the commander of Military Engineers Service and assisted by an officer of the army’s finance wing.

The DAC had asked the military authorities to submit the court findings by January 1, 2012. However, no inquiry has been so far conducted in this regard.

According to the defence services audit report, the Bagh Garrison, weeks before the closing of fiscal 2008-09, had conveyed to the Controller of the Military Accounts (CMA), Rawalpindi that a sum of Rs32 million out of an allocated amount of Rs186 million was spent and the remaining Rs153 million was supposed to be surrendered to the government. But accounts showed that only Rs119 million were surrendered by the garrison, auditors observed.

When pointed out by auditors in July 2010, the concerned department replied that the claim of Rs34 million was forwarded by the unit to CMA, Rawalpindi. But the decision could not be received from the CMA till June 30. It was then decided that an amount of Rs34 million should be placed under suspense head of account through transfer entry so that the funds do not lapse. However, to utilise the lapsable funds in the interest of state, payment was made to NLC being a government organisation, added the reply.

The auditors rejecting the logic of the garrison accountants said the reply was unsatisfactory and could not justify the unauthorised payment made the NLC.

Published in The Express Tribune, July 15^th, 2012.