Hike in wheat price sparks debate over flouting of rules

Ministry says approval is anticipatory which will be ratified by ECC.

ISLAMABAD: The government’s decision to increase wheat support price without calling a meeting of the Economic Coordination Committee has once again triggered a debate over an increasing tendency among the rulers to take decisions by avoiding acceptable procedures.

In the process, the rules are flouted and the violators easily escape the mechanisms laid down to ensure transparency and fair play in decision-making.

In the first week of the current month, Finance Minister Ishaq Dar announced the increase in the wheat support price by Rs100 to Rs1,300 per 40 kg in his capacity as the ECC chairman without calling its meeting.



The wheat support price is normally fixed by the ECC in consultation with provinces as after the 18th Constitution Amendment, agriculture policymaking is a provincial subject.

The move not only violates the Rules of Business 1973 of the federal government but is also against Dar’s own assertions that economic ministries must bring their summaries for ECC’s consideration only after taking views of all the divisions concerned.

The Rules of Business 1973 provides guidelines on calling a meeting of the cabinet or its committee, the manner in which decisions can be taken and the conduct of meetings. Rules 18 to 23 are the most relevant detailing how to handle decision-making in the ECC or cabinet.

According to Rule 18 Sub-rule 4, where a case concerns more than one division, the summary shall not be submitted to the cabinet (or its committee), unless it has been considered by all the divisions concerned.

Rule 18 Sub-rule 6 says no case for inclusion in the agenda of the meeting shall be accepted unless it reaches the secretary of the cabinet seven days in advance of the meeting.

After the violation of rules, the Ministry of Finance came up with an interesting justification.

It insisted that approval of the wheat support price accorded by the finance minister after reviewing a summary of the Ministry of Food Security on November 1, was anticipatory which would be ratified by the ECC.

Furthermore, it said, as wheat sowing was under way, the next ECC meeting almost a week and a half away and the minister leaving for IMF talks in Dubai, an inordinate delay had been averted for the benefit of farmers.

This is deviation from Rule 18 as in no circumstances the minister can preempt the responses of divisions concerned. Secondly, given the influence of Dar, no ministry would dare to say no when the summary would be presented for ratification.

Lastly, there was no urgency, as the history tells that the wheat support price had been set as late as February.

According to a former federal secretary of the cabinet, there is a convention for giving anticipatory approvals but hardly any case was presented for ratification. In cases, where the issue came up for ratification, it turned out to be a formality.

Insiders say the federal government increased the wheat support price to weaken the support base of PML-N dissident Senator Sardar Zulfiqar Khosa in federal and provincial legislatures.

The price should not be increased without carrying out detailed studies, says former deputy chairman of Planning Commission, Dr Nadeemul Haque. He is of the view that government’s intervention in the agriculture sector should be stopped and market dynamics should be allowed to play the role.

This is not the first time Dar took a decision outside the ECC forum. Earlier, he sanctioned millions of rupees in budget honorariums to his ministry’s top officials without seeking approval of the ECC.

In 1996, the ECC had accepted a summary to give budget honorarium to officers up to grade-20. However, Dar, in his capacity as the body’s chairman, sanctioned honorariums to grade-21 and 22 and his adviser, who is in the Management Pay Scale-I’ – not entitled to any additional monetary benefits.

But the Ministry of Finance insists that the finance minister has powers delegated by the ECC to grant approval for honoraria to officials above BS-20 and such approval does not need to be ratified by the ECC.

If one believes in the ministry’s claim, even then the FM has no powers to give budget honorarium to an MP-I officer whose salary is more than double the salary of a grade-22 officer and is inclusive of all monetary benefits.

In such cases, the auditors have framed audit objections and sought recoveries. But unfortunately, neither the decision-maker will be stopped from giving unlawful favours nor would the recipient return the money to the exchequer.

Even Prime Minister Nawaz Sharif has set aside the rules while making foreign appointments on lucrative posts. The policymakers have to decide whether they want rule of law to ensure good governance or continuation of cronyism that has harmed state institutions.

The recent appointment of a retired major general, who is equivalent to grade-21, as chairman of the Federal Public Service Commission is yet another example of bad governance. Members of the commission are retired grade-22 officers and have more experience than the chairman.

THE WRITER IS A STAFF CORRESPONDENT

 

Published in The Express Tribune, November 10^th, 2014.

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