The audit stated that concerned officials in the PAEC did not discharge their official responsibilities.
The Pakistan Atomic Energy Commission (PAEC) has drawn criticism from the Auditor General of Pakistan for exercising financial indiscipline in handling its monetary affairs.
The audit stated that concerned officials in the PAEC did not discharge their official responsibilities, and pointed out irregularities in the commission.
However, Shahid Riaz Khan, a director in PAEC, told The Express Tribune that “no such document had been received by the PAEC through official channels from the relevant sector, so [there is] no question of any comment or response at this stage.”
A draft report for 2011-12 revealed that the audit team, while reviewing Cash Book of Assignment Account No 502-9, observed that funds of around Rs4,288.600 million were transferred from the Assignment Accounts to current account No 410-0 maintained at the National Bank of Pakistan.
Further scrutiny of the cash book of account no 410-0 revealed that there was an opening balance of Rs1,782 million in the account. After a transfer of Rs4,288.600 million, the available balance increased to Rs6.1 billion, out of which Rs4,709 million were released to various executing agencies, while a balance of Rs1,361,090 million was retained unutilised in the bank account as of June 30, 2011.
The audit observed that a budgetary grant should have been surrendered to the government at the close of the financial year, and this retention was an irregular exercise. To this, the management replied that out of Rs4,288.600 million received in the assignment accounts, an amount of Rs13.700 million was surrendered to the government.
Furthermore, all the funds received in the assignment accounts were not transferred to the current account no 410-0, but only committed funds for the opening of a letter of credit & award of civil work of ongoing projects were transferred, the auditor said.
The management stated that account no 410-0 of development expenditure is a committed liability account. The balance of Rs 1,361.090 million in the account on 30 June 2011 is the commitments of outstanding Letters of Credit and award of civil work of opening development projects, which have been retained for expenses against claims of suppliers and contractors.
The up-to-date balance in this account is Rs133.694 million after clearing liabilities. The audit holds that the transfer of funds and the retention of the unspent balance on 30 June 2011 are irregular as it was a budgeted grant and was to be lapsed at the end of the financial year.
The irregularity was brought into the notice of Principal Accounting Officer on 22 November 2011 but the meeting of the Departmental Accounts Committee was not convened till the finalisation of the audit report in 2012.
In another case, the management of PAEC Headquarters in Islamabad transferred funds amounting to Rs 1,470.217 million from an account maintained for operational expenses, to other bank accounts without having the authority to carry out such transfers.
According to Delegation of Powers, issued by the National Command Authority, no such powers were delegated to PAEC for transferring funds on the basis of loans. Audit observed that the irregularity was committed because government’s instructions were not adhered.
The management replied that the funds were transferred as bridge financing for payment of salaries and all the amounts were transferred with the approval of Member (Finance) being representative of the ministry of finance .
The receipt of funds from government involves considerable time and PEAC has to pay salaries to the employees on the first day of each month, for which funds are obtained from other sources on the basis of loans which are recouped on receipt of funds from the government, the management said.
The total amount of Rs 4,109.500 million provided by the government for 2010-11 has been reconciled with the Accountant General Pakistan Revenue.
Audit holds that there is no provision for payment of salaries and allowances from other accounts as the budget release is available in the Assignment Account at the start of the financial year. Furthermore, the representative of the finance ministry is the financial adviser of the administrative ministry, and not the member (finance) of PAEC.
Audit recommended that the irregularity may have been condoned from the ministry of finance besides discounting the practice in future. The Principal Accounting Officer was informed about the issue on 22 November 2011 but the departmental accounts committee was not convened till the finalisation of the report in 2012.
In another such case, the PAEC, transferred an amount of Rs 4,109,500 million from the Assignment Accounts of PAEC for departmental expenditure and deposited in various bank accounts maintained with national bank of Pakistan without approval of the ministry of finance merely to avoid lapse of funds. As per policy and procedure the funds were required to be placed in the Assignment Accounts. Transfer of government funds in bank account without proper authorisation is irregular.
Published in The Express Tribune, January 20th, 2013.
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Turn any stone & one will find irregularities in any govt dept....because when there is corruption/ irregularities at the top...what face one has to point fingers toward others......