CADD probe report: FDE banking on private accounts

Large sums collected under different heads were directed to the account.

ISLAMABAD:

A Capital Administration and Development Division (CADD) investigation has found that the Federal Directorate of Education is illegally operating a private bank account to collect funds.

Acting on CADD Secretary Shaigan Shareef’s orders, an inquiry report was submitted with CADD on August 7 which unveiled private bank account opened under the title of Examination Fund Account for the FDE without the authority of officers concerned. According to documents available with The Express Tribune, the bank account was opened in 2011-12 without Finance Division approval.

The documents reveal that other than the departmental examination income, huge funds from recurring budget and development projects were transferred to this account in June 2012. The amount collected from private students of class 5 was Rs250 each, while Rs300 were charged from students of class 8 for departmental examination. While the average annual collection revealed sums up to more than Rs1 million from the exams alone, all the funds transfers were also recently subject to objections from the Auditor General of Pakistan as well.

The opening of a private bank account and transferring development funds there resulted in non-payment of outstanding dues to the National Book Foundation, and ultimately, non-availability of books to students, the probe report observed.

The FDE collected and deposited Rs5.3 million in this account under examination fund without the approval of Finance Division. Besides, FDE was also found misusing the account by withdrawing the recurring and development budget from the official account and depositing in the illegal account.

An amount of Rs8.1 million allocated under the head Training in Regular Budget from 2005-13 was drawn from Accountant General of Pakistan Revenue (AGPR), of which Rs7.1 million were used and over Rs 1.1 million is still available. Besides, Rs7 million are also remaining from an amount of over Rs20 million allocated under the development budget, which was withdrawn from the assignment account.

The procedure for the withdrawal of money from such accounts requires that the sanctioning authority ensure the goods or services have been received and the signatories must exercise pre-audit checks. But here, the cheques were only issued to fulfil the required formalities. Both the DG and planning and development director were not authorised to issue a cheque and deposit it in a private bank account.

Around Rs65 million, under the 16 other projects for schools and colleges’ development, is the remaining balance in the different other private accounts withdrawn from assignment accounts against approved schemes.

Of the Rs65 million, Rs19 million was allocated for the salaries of staff to be recruited under the approved projects and other schemes. During discussions with FDE staff, it turned out that not a single person has been recruited.

The investigation also found that after the passage of 18th Amendment, the state is responsible for providing free and compulsory education to children under 16. Therefore, charging primary and middle class students for any kind of fund is a violation of the constitution.

“All the development funds placed in private banks accounts should be deposited in the federal treasury, the accounts should be closed, and students should not be charged examination funds,” the report said.

Published in The Express Tribune, September 8^th, 2013.