Public Accounts Committee unhappy with PAEC, FBR audit objections
• AGP says IMF worried over delay in audit process
• PAEC says purchases made for nuclear power plant were ‘transparent’
• Rs312bn fraud foiled, claims Langrial; PAC wonders if FBR operating as ‘private entity’
ISLAMABAD: The Public Accounts Committee (PAC) of parliament while examining audit objections concerning the Pakistan Atomic Energy Commission and Federal Board of Revenue on Wednesday voiced dissatisfaction over systemic and procedural shortcomings resulting in losses worth billions to the exchequer.
During the session held under the chairmanship of Junaid Akbar, irregularities amounting to Rs1.15bn were identified in the spot procurement for the Karachi Nuclear Power Plant, according to audit officials.
However, PAEC chairman Dr Raja Ali Raza Anwar defended the purchases, stating that all procurements were made following the National Command Authority’s regulations.
PAC members expressed dissatisfaction over the absence of Law Ministry’s representatives from the meeting and directed the secretary concerned to ensure participation in future meetings.
The committee also examined an agreement with China for the supply of lifetime stores for the nuclear plant.
PAEC officials explained that due to Covid-19-related disruptions, essential items had to be procured from the local market. They assured the committee that all purchases had been conducted transparently through tenders.
Additionally, the PAC emphasised the importance of strict adherence to procurement regulations by all government institutions and ministries. The panel directed that disciplinary action be taken against officials found guilty of violating procurement rules.
Auditor General of Pakistan (AGP) Ajmal Gondal stressed the necessity of transparency in financial management across all departments.
Addressing the backlog in audit reports, the committee was informed that 500,000-600,000 audit paras remain unresolved.
The delay in the audit process of state institutions had worried the International Monetary Fund (IMF), Mr Gondal told the meeting, Dawn.com reported. He said IMF had expressed concerns over pending audit paras.
“The IMF has demanded early settlement of audit cases of institutions,” Mr Gondal said, adding that there were about 500,000 to 600,000 pending audit paras pertaining to ministries and institutions.
He continued that despite the orders of parliament, no chief internal accountant had been appointed. “The financial audit system is flawed due to non-implementation of rules.
“Secretaries and chief financial officers of institutions are not clearing their audits,” he said. “There are only chief financial officers in 15 institutions, and none of them have a chief internal accountant.”
He reiterated that there were no internal audit systems in institutions.
“The number of pending audit cases with the PAC has increased to more than 30,000,” the AGP said.
The PAC sought details of the matter from ministries and institutions within a month.
The members emphasised the need for an accountability system to ensure improvements.
FBR shortcomings
Regarding audit objections related to the Federal Board of Revenue, the PAC reviewed 25 highlighted paras amounting to Rs807bn.
FBR Chairman Rashid Mahmood Langrial disclosed that an attempt to commit fraud worth Rs312bn had been thwarted, though a Rs640 million fraud attempt was successful.
The committee criticised the FBR’s reluctance to provide record related to the Common Pool Fund, questioning whether the tax body was operating as a private entity.
The PAC also examined a Rs312bn sales tax evasion case, expressing concern over the agency’s delayed action.
Senator Afnanullah Khan raised questions over how such large-scale frauds went undetected by FBR. The committee directed the agency to provide complete record of the matter for further scrutiny.
The meeting also touched upon the performance of PAC, with officials noting that Rs30bn had been recovered since its inception on Feb 4, 2025.
The members highlighted the effectiveness of PAC in initiating recoveries as soon as its meetings were convened.
Additionally, a case regarding the transfer of a woman FBR officer was discussed, where the PAC questioned the reasons behind the decision. The FBR chairman said though she was a competent officer, her choice of words for the finance minister were unacceptable.
The session concluded with directives for the FBR to submit a monthly recovery report and emphasised the need for thorough inquiries before taking disciplinary actions against officials.
Published in Dawn, March 6th, 2025