Nadeem Afzal Gondal Chairman (PAC)
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NATIONAL ASSEMBLY OF PAKISTAN REPORT OF THE PUBLIC ACCOUNTS COMMITTEE ON THE ACCOUNTS OF THE FEDERATION FOR THE YEAR 2004-05 (25th April, 2012 to 24th January, 2013) Presented by: Nadeem Afzal Gondal Chairman (PAC) TABLE OF CONTENTS Page Nos A. Preface (i) B. Introduction (iii) C. Composition of PAC (v) D. Executive Summary (xi-xxii) E. Excess Budget Statement for the Year 2004-05 (xxix) REPORTS OF THE MINISTRIES/DIVISIONS/DEPARTMENTS 01. Cabinet Division 1-34 02. Ministry of Capital Administration and Development 35-52 03. Ministry of Climate Change 53-55 04. Ministry of Commerce 56-65 05. Ministry of Communications 66-72 06. Ministry of Defence 73-105 07. Ministry of Defence Production 106-112 08. Economic Affairs Division 113-115 09. Ministry of Education and Training 116-122 10. Election Commission of Pakistan 123-124 11. Establishment Division 125-128 12. FATA Secretariat 129-139 13. Federal Tax Ombudsman 140-141 14. Finance Division 142-165 15. Ministry of Foreign Affairs 166-186 16. Higher Education Commission 187-188 17. Ministry of Housing and Works 189-202 18. Ministry of Human Resource Development 203-209 19 Ministry of Human Rights including M/o Women Development 210-214 20. Ministry of Industries 215-219 21. Ministry of Information and Broadcasting 220-228 22. Ministry of Information Technolgoy and Telecommunications 229-232 23. Ministry of Inter-Provincial Coordination 233-235 24. Ministry of Interior 236-252 25. Ministry of Investment (Board of Investment) 253-254 26. Ministry of Kashmir Affairs and Gilgit Baltistan 255-260 27. Ministry of Law and Justice 261-265 28. National Assembly Secretariat 266-267 29. Ministry of Narcotic Control 268-269 30. Nation Accountability Bureau (NAB) 270-272 31. Ministry of National Food Security and Research 273-282 32. Ministry of Natinoal Harmony 283-287 33. Ministry of National Heritage and Integration 288-296 34. Ministry of Overseas Pakistanis 294-296 35. Pakistan Atomic Energy Commission 297-298 36. Ministry of Parliamentary Affairs 299-300 37. Ministry of Petroleum and Natural Resources 301-307 38. Planning and Development Division 308-311 39. Ministry of Ports and Shipping 312-313 40. Ministry of Postal Services 314-327 41. President’s Secretariat 328-329 42. Prime Minister’s Secretariat 330-332 43. Prime Minister’s Inspection Commission 333-334 44. Ministry of Privatization 335-336 45. Ministry of Production 337-341 46. Ministry of Railways 342-352 47. Ministry of Religious Affairs 353-357 48. Revenue Division (FBR) 358-405 49. Ministry of Science and Technology 406-410 50. Senate Secretariat 411-412 51. Ministry of States and Frontier Regions 413-417 52. Statistics Division 418-421 53. Ministry of Textile Industry 422-423 54. Wafaqi Mohtasib Secretariat 424-425 55. Ministry of Water and Power 426-438 ANNEXURES 1. List of Recoveries for the year 2004-05. (Annexure ”A”) 2. List of Court Cases. (Annexure “B”) PREFACE Under Article 171 of the Constitution of Islamic Republic of Pakistan, 1973 read with Rules 177 and 203 of Rule of Procedure and Conduct of Business in the National Assembly 2007, the annual report of the Auditor General relating to the Accounts of the Federation for the year 2004-05, was referred to the Public Accounts Committee for examining the appropriation of the sums granted by the Assembly for the expenditure of the Government to ensure transparency through parliamentary oversight. The PAC examines with reference to the facts of each case, the circumstances leading to any excess expenditure and make recommendations. The current PAC was saddled with an arduous task of examining the minutiae of the expenditure of each ministry to detect financial bungling and lay guidelines for future. In the PAC Report, 2004-05, major issues, concerns and Committees general recommendations on each Ministry/Division have been highlighted in the specific sections for a quick glance on their performance. The accomplishment of this exercise is outcome of sincerity, hard work and alacrity of the Hon. Members of the Public Account Committee. They under the able guidance of the Hon. Chairman made the assignment a fait accompli. Mr. Nadeem Afzal Gondal, Chairman, Public Accounts Committee remained throughout a pole star. He provided motivation to the PAC Staff to channelize its energies into right directions to enable it render requisite services. The drafting, preparation and printing of this Report has been made possible due to the willing cooperation and fervent endeavors of the officers/staff of the Public Accounts Committee of the National Assembly. I am sanguine that the suggestions and recommendations of the Committee would encourage and assist the Government in smartening up the system and procedure for constructive financial management. ( Karamat Hussain Niazi ) Secretary National Assembly Secretariat Islamabad, the 06th March, 2013. (i) INTRODUCTION Parliamentary control over public finance in Pakistan is exercised in two stages: the „proposals stage‟ and the „results stage‟. At the first stage, the Government comes forth with a Budget proposal for the National Assembly‟s approval. The Government must get the financial nod of the Public representatives to give effect to its policies and programmes. The second stage relates to the control over the expenditure of public money. This is the stage where the PAC comes into picture when it examines the accounts of the Federal Government compiled by the Controller General of Accounts (CGA) and the reports of the Auditor General of Pakistan. This process assigns responsibility to the public representatives to keep a check on public expenditure. Under Article 171 of the Constitution of the Islamic Republic of Pakistan, the Auditor General of Pakistan submits Annual reports to the President who causes them to be laid before the National Assembly. For a detailed scrutiny, these reports are referred to the Public Accounts Committee. 1.2 As a rule, no money granted by the National Assembly can be spent on any service over and above for the specified purpose. Excess expenditure, if any, is viewed seriously. The PAC examines with reference to the facts of each case, the circumstances leading to any excess expenditure and makes appropriate recommendations. 1.3 Audit plays an important and primary role in promoting and strengthening the legislative oversight to enhance transparency and improve the efficiency and effectiveness of all Government activities. Audit follow-up is an integral part of good financial management of public funds, and is a shared responsibility of executive management officials and auditors. 1.4 It is a precedent that DAC is always comprised of the Principal Accounting Officer as Chairman and the D.G Audit, the Financial Advisor/Deputy Financial Advisor and the Chief Finance and Accounts Officer of concerned Ministry/Division as Members. 1.5 As per previous practice all the issues were discussed at the DAC level and the paras and grants which could not be finalized at the DAC level were presented to the PAC for examination. The Parliamentarians representing different parties exercised their role in the Parliamentary oversight of public finance. 1.6 The present Public Accounts Committee was re-constituted in April, 2012 which was composed of twenty three (23) members of the National Assembly and the Minister for Finance and Revenue as ex-officio member. 1.7 Mr. Nadeem Afzal Gondal, MNA, from PPPP was unanimously elected as the Chairman of Public Accounts Committee, after the resignation of Ch. Nisar Ali Khan, the former Chairman. PAC under Mr. Nadeem Afzal Gondal‟s leadership remained one of the most visible and active Committees of the House. ************* (iii) Nadeem Afzal Gondal, Chairman, Public Accounts Committee Mr. Nadeem Afzal Gondal, MNA/Chairman (PAC) Syed Ghulam Mustafa Shah Mr. Aftab Shahban Mirani Mr. Zahid Hamid Mr. Saeed Ahmed Zafar Khawaja Mohammad Asif Mrs. Rukhsana Bangash Mr. Riaz Fatyana Mr. Noor Alam Khan Sardar Ayaz Sadiq Mrs. Asiya Nasir Mrs. Yasmeen Rehman Ch. Saeed Iqbal Mr. Noor-ul-Haq Qadri Mr. Abid Sher Ali Mr. Abdul Rashid Godil Eng. Khurram Dastagir Khan Dr. Attiya Inayatullah Mr. Hamid Yar Hiraj Mr. Akram Masih Gill Mr. Wasim Akhtar Mr. Asfandaryar Wali Syed Ali Musa Gillani EXECUTIVE SUMMARY It gives me immense pleasure to present the 2nd Report of Public Accounts Committee on the Appropriation Accounts and Audit Report for the year 2004-05 before this august House. The Report of Auditor General for the year,2004-05 was tabled in the House on 24th Day of December,2008 and was referred to the Public Accounts Committee for examination. 2. The 14th Public Accounts Committee of this House examined the appropriation of accounts and Audit Report of year 2004-05 in 9 months period. The PAC held 69 marathon sessions examining 174 Grants and 963 audit paras. The Committee completed its task with the denotation, transparency and guidance to the Institutions for corrective action. 3. At the very outset of its tenure, the current National Assembly faced multitude of challenges, but still kept accountability and transparency high on its agenda because of the commitment of all parties represented in the National Assembly to strengthen public accountability. 4. The members were furthermore cognizant of the fact that accountability and transparency was a sine qua non for establishing democracy on a strong footing for which they all had rendered great sacrifices in the democratic history of the country. 5. As a result of the committee’s efforts, large amounts of Government funds were recovered from various sources. During the period May, 2012-March, 2013 the Auditor General Office verified recoveries amounting to Rs.23.188 billion. Various issues which had remained unresolved for years got resolved due to the committee’s intervention. Similarly pending issues between various organizations were resolved. (viii) 6. The proceedings of the PAC remained open throughout to the media.