Audit report: Five institutions squander over Rs200m in secret funds
FIA, NACTA and Islamabad police used it without authorisation.
FIA, NACTA and Islamabad police used it without authorisation. PHOTO: FILE
LAHORE:
Five federal institutions have made irregular expenditures amounting to over Rs200 million under the head of secret funds, the audit report of financial year 2012-2013 revealed.
The departments include Ministry of Information & Broadcasting, Federal Tax Ombudsman (FTO), National Counter Terrorism Authority (NACTA), Islamabad Police and the Federal Investigation Agency (FIA).
The information ministry came out as the biggest spender of secret funds for doling out more than Rs182 million in a fiscal, though the audit report states that it is not authorised to maintain such a fund.
Regarding NACTA and Islamabad Police the auditors noted that the secret service expenses were not spent as per laid out rules.
According to Serial No37 (4) of Appendix 8 of para 130 General Financial Rules (GFR) Volume I, in respect of each officer authorised to incur secret service expenditure, government will nominate a controlling officer who should conduct at least once in every financial year, a sufficiently real administrative audit of expenditure incurred and furnish a certificate to the Accountant General not later than the 30th of November following the year to which it relates.
The Finance Division Office Memorandum states that the Principal Accounting Officer (PAO) shall personally handle the expenditure and the PAO shall give a certificate at the end of financial year about detail expenditure incurred out the secret service fund.
Fia
The contents of the Audit Report 2012-2013 of the Auditor General of Pakistan available with The Express Tribune stated that the management of the FIA Headquarters, Islamabad spent Rs7 million on account of secret service fund during 2011-12.
Audit observed that Finance Division did not define the exact procedure for creation of secret service fund in FIA. The amount was spent by Director General FIA for which he was not authorised. The Controlling Officer Certificate was not furnished to Accountant General. The administrative audit of expenditure incurred was not carried out.
Audit is of the view that the expenditure was incurred in violation of the government instructions regarding record keeping of secret fund.
Audit recommends that the procedure for creation of Secret Service Fund in the FIA Headquarters, Islamabad may be provided.
Islamabad police
The management of Islamabad Capital Territory Police (ICTP) incurred an expenditure of Rs3 million from secret service fund during 2011-12.
Audit observed that the amount was spent by IG Islamabad for which he was not authorised.
The counterterrorism authority incurred an expenditure of Rs2 million out of secret service fund during 2010-11 .Audit observed that the amount was spent by the National Coordinator, NACTA for which he was not authorised.
The audit made the recommendations for ICTP and NACTA as that of FIA
FTO
The Federal Tax Ombudsman (FTO) Secretariat, Islamabad incurred an expenditure of Rs3.9 million under the head of secret service fund during 2010-12.
Audit observed that there was no provision in the FTO Ordinance for maintaining the secret service fund and incurrence of expenditure there from. Therefore, the expenditure was unjustified and should be discontinued it said.
Information ministry
Ministry of Information and Broadcasting has spent an amount of Rs182.460 million on account of secret service expenditure.
Audit is of the view that in the absence of any criteria for the establishment of secret service fund, a sufficiently real administrative audit of the expenditure could not be conducted by the controlling officer nominated by the government. And the certificate provided in respect of spending the fund on public interest does not serve the purpose of audit.
Audit recommends that criteria, justification, procedure for creation of secret fund in the ministry be provided.
Published in The Express Tribune, September 15th, 2013.
Five federal institutions have made irregular expenditures amounting to over Rs200 million under the head of secret funds, the audit report of financial year 2012-2013 revealed.
The departments include Ministry of Information & Broadcasting, Federal Tax Ombudsman (FTO), National Counter Terrorism Authority (NACTA), Islamabad Police and the Federal Investigation Agency (FIA).
The information ministry came out as the biggest spender of secret funds for doling out more than Rs182 million in a fiscal, though the audit report states that it is not authorised to maintain such a fund.
Regarding NACTA and Islamabad Police the auditors noted that the secret service expenses were not spent as per laid out rules.
According to Serial No37 (4) of Appendix 8 of para 130 General Financial Rules (GFR) Volume I, in respect of each officer authorised to incur secret service expenditure, government will nominate a controlling officer who should conduct at least once in every financial year, a sufficiently real administrative audit of expenditure incurred and furnish a certificate to the Accountant General not later than the 30th of November following the year to which it relates.
The Finance Division Office Memorandum states that the Principal Accounting Officer (PAO) shall personally handle the expenditure and the PAO shall give a certificate at the end of financial year about detail expenditure incurred out the secret service fund.
Fia
The contents of the Audit Report 2012-2013 of the Auditor General of Pakistan available with The Express Tribune stated that the management of the FIA Headquarters, Islamabad spent Rs7 million on account of secret service fund during 2011-12.
Audit observed that Finance Division did not define the exact procedure for creation of secret service fund in FIA. The amount was spent by Director General FIA for which he was not authorised. The Controlling Officer Certificate was not furnished to Accountant General. The administrative audit of expenditure incurred was not carried out.
Audit is of the view that the expenditure was incurred in violation of the government instructions regarding record keeping of secret fund.
Audit recommends that the procedure for creation of Secret Service Fund in the FIA Headquarters, Islamabad may be provided.
Islamabad police
The management of Islamabad Capital Territory Police (ICTP) incurred an expenditure of Rs3 million from secret service fund during 2011-12.
Audit observed that the amount was spent by IG Islamabad for which he was not authorised.
The counterterrorism authority incurred an expenditure of Rs2 million out of secret service fund during 2010-11 .Audit observed that the amount was spent by the National Coordinator, NACTA for which he was not authorised.
The audit made the recommendations for ICTP and NACTA as that of FIA
FTO
The Federal Tax Ombudsman (FTO) Secretariat, Islamabad incurred an expenditure of Rs3.9 million under the head of secret service fund during 2010-12.
Audit observed that there was no provision in the FTO Ordinance for maintaining the secret service fund and incurrence of expenditure there from. Therefore, the expenditure was unjustified and should be discontinued it said.
Information ministry
Ministry of Information and Broadcasting has spent an amount of Rs182.460 million on account of secret service expenditure.
Audit is of the view that in the absence of any criteria for the establishment of secret service fund, a sufficiently real administrative audit of the expenditure could not be conducted by the controlling officer nominated by the government. And the certificate provided in respect of spending the fund on public interest does not serve the purpose of audit.
Audit recommends that criteria, justification, procedure for creation of secret fund in the ministry be provided.
Published in The Express Tribune, September 15th, 2013.