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Report of the Public Accounts Committee 2020

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Report of the Public Accounts Committee 2020 Report of the PUBLIC ACCOUNTS BALOCHISTAN COMMITTEE on Appropriation Accounts of PROVINCIAL the Government of Balochistan for the Financial Year 2016-17 ASSEMBLY and SECRETARIAT Report of the Auditor General of Pakistan for the Audit Year 2017-18 Report of the PUBLIC ACCOUNTS COMMITTEE on Appropriation Accounts of the Government of Balochistan for the Financial Year 2016-17 and Report of the Auditor General of Pakistan for the Audit Year 2017-18 BALOCHISTAN PROVINCIAL ASSEMBLY SECRETARIAT Devastation for those who exact full measure when they take from others, but when they measure or weigh for others give less than what is due. Do they not think that they will be raised up one day? for [presence] on a great day. The day when men will stand up before the Lord of the worlds. CONTENTS ABBREVIATIONS/ACRONYMS i PREFACE iii EXECUTIVE SUMMARY iv RECOMMENDATIONS xii SUMMARIES, TABLES & CHARTS xv REPORT xxix CERTIFICATION AUDIT OF ACCOUNTANT GENERAL BALOCHISTAN 1 COMMUNICATION AND WORKS (C&W) DEPARTMENT 6 BOARD OF REVENUE 17 HEALTH DEPARTMENT 37 SERVICES & GENERAL ADMINISTRATION DEPARTMENT (S&GAD) 52 IRRIGATION DEPARTMENT 71 PUBLIC HEALTH ENGINEERING (PHE) DEPARTMENT 88 EDUCATION DEPARTMENT 100 a. COLLEGES, HIGHER & TECHNICAL EDUCATION DEPARTMENT 104 b. SECONDARY EDUCATION DEPARTMENT 111 UNIVERSITY OF BALOCHISTAN AND AREA STUDY CENTER 126 AGRICULTURE AND COOPERATIVES DEPARTMENT 137 POLICE 148 EXCISE & TAXATION DEPARTMENT 158 FISHERIES DEPARTMENT 167 LIVESTOCK AND DAIRY DEVELOPMENT DEPARTMENT 179 FOREST AND WILDLIFE DEPARTMENT 191 SARDAR BAHADUR KHAN WOMEN’S UNIVERSITY (SBKWU) 199 SPORTS DEPARTMENT 205 REPORT OF PAC - BALOCHISTAN PROVINCIAL ASSEMBLY ABBREVIATIONS/ACRONYMS AG Accountant General APPM Accounting Policies and Procedures Manual APUG All Pakistan Unified Group B&R Buildings and Roads BoQ/BOQ Bill of Quantities BPPRA Balochistan Public Procurement Regularity Authority BST Balochistan Sales Tax CPWA Central Public Work Accounts CPWD Central Public Works Department C&W Communication and Works CSR Composite Schedule of Rates Cft. Cubic Feet DAC Departmental Accounts Committee DAOs District Account Offices DDO Drawing and Disbursing Officer DG Director General E&M Electrical and Mechanical FIA Federal Investigation Agency FIR First Information Report FTR Federal Treasury Rules GBPS Government Boys Public School GFR General Financial Rules GoB Government of Balochistan Kg Kilogram Km Kilometer M Meter MFDAC Memoranda for Departmental Accounts Committee MB Measurement Book Mm Millimeter MSD Medical Store Depot NIT Notice Inviting Tender NOC No Objection Certificate NSR Non-Schedule Rate PAC Public Accounts Committee i PAO Principal Accounting Officer PC-I Planning Commission (Proforma-I) PFHA Pasni Fish Harbor Authority PD Project Director P&D Planning and Development POL Petroleum, Oil and Lubricants PSDP Public Sector Development Program QESCO Quetta Electric Supply Company Rft. Running Feet SDAC Special Departmental Accounts Committee SDO Sub Divisional Officer Sft. Square Feet TOs Treasury Offices UoB University of Balochistan UPVC Un-plasticized Polyvinyl Chloride Vol Volume ii ABBREVIATIONS/ACRONYMS REPORT OF PAC - BALOCHISTAN PROVINCIAL ASSEMBLY P R E F A C E The Report of the Auditor General of Islamic Republic of Pakistan on the Accounts of Government of Balochistan for the Audit Year 2017-18 and Finical Year 2016-17 was laid before the House on 18th December, 2018 by the Finance Minister, Balochistan as required under Article 171 of the Constitution of Islamic Republic of Pakistan, 1973. As per Rule 174 of the Provincial Assembly of Balochistan, Rules of Procedure and Conduct of Business 1974, such reports are referred by the Speaker to the Public Accounts Committee (PAC) for examining appropriation of the sums granted by the Assembly for expenditure of the Government of Balochistan to ensure transparency through parliamentary oversight. PAC, in principle, examines with reference to the facts of each case with special regard to the circumstances leading to any excess expenditure and makes recommendations. The current PAC was saddled with a tough task of examining the details of the expenditure of each department to detect financial mismanagement and lay guidelines for future. Under the surveillance of Audit Report 2017-18, major issues, concerns and committees’ general recommendations on each department have been highlighted in the specific sections for a quick glance on their adherence to rules and performance. The PAC examined the said Audit Report in series of meetings spanning over thirty-five (35) sittings held in the Committee Room of the Provincial Assembly of Balochistan. In this Report the Audit Paras/observations pertaining to each department of the Government of Balochistan are arranged separately. Tables showing details of total Paras and recommendations of PAC thereon have also been added for ready reference. The accomplishment of this exercise is an outcome of sincerity, hard work and eagerness of the Hon’ble Members of the Public Account Committee who under the leadership of the Chairman made the assignment possible well in time. Mr. Akhtar Hussain Langau, Chairman, Public Accounts Committee remained nucleus throughout who proved himself a potent motivational guide to the PAC Staff for channelizing its energies into the right directions pushing them up to render the requisite services up to the mark. The drafting and preparation of this report has been made possible due to the determined hard work of the officers and staff of the PAC. Their sincere and devoted endeavors deserve appreciation and commendation. This Report of PAC is presented to the Provincial Assembly of Balochistan under Rule 162 of the Provincial Assembly of Balochistan Rules of Procedure and Conduct of Business, 1974. I am optimistic that the suggestions and recommendations of the PAC would encourage and assist the Government in smartening up the procedure for effective public financial management system, in future. Sd/- SAFDAR HUSSAIN Secretary, Provincial Assembly of Balochistan iii 2016-16 E X E C U T I V E S U M M A R Y As Chairman Public Accounts Committee (PAC), I have the honor and it gives me immense pleasure to present the first-ever Report of Public Accounts Committee (PAC) on the Appropriation Accounts 2016-17 and Audit Report 2017-18 before this August House. The Report of Auditor General for the Audit Year 2017-18 was tabled in the House on 18th Day of December, 2018 and then referred to the Public Accounts Committee for detailed examination. 2. It is a fundamental principle of any Parliamentary System that each Federal, Provincial and District Governments must be held accountable to the Legislature (by whose authority it governs) and through the Legislature to the taxpayers at large. This process is explicitly reflected in Articles 169-171 of the Constitution of the Islamic Republic of Pakistan, 1973 whereby the Auditor General of Pakistan submits Annual Audit Reports to the Governor, Balochistan who causes them to be laid before the Provincial Assembly. These reports are then referred to the Public Accounts Committee under Rule 174 of the Provincial Assembly of Balochistan, Rules of Procedure and Conduct of Business, 1974. 3. Assembly, in fact, is meant to play the most important role in strengthening the law and practice of accountability/transparency. At the fundamental level, Assembly is supposed to frame an effective and robust legal framework of accountability through legislative oversight. From the conceptual overview of Public Accounts Committee, its function, inter alia, is to ensure legislative oversight through public accountability in Government spending. Crucial aspect of a transparent system of resource allocation involves an independent assurance of the integrity of public budgeting through proper audit process, and the scrutiny of its outcomes by the representatives of the people, in the form of legislature setup as Public Accounts Committee (PAC). There are several factors that have considerable effect on the functions and impact of the Public Accounts Committee. However, the lack of an effective system of public accountability/transparency can pave way for inability to safeguard public funds and assets. 4. At the very outset of its tenure, the current Assembly faced multitude of iv E X E C U T I V E S U M M A R Y 2016-16 REPORT OF PAC - BALOCHISTAN PROVINCIAL ASSEMBLY challenges, but still kept accountability and transparency high on its agenda because of the commitment of all parties represented in the Provincial Assembly to strengthen public accountability. The members of PAC were furthermore cognizant of the fact that accountability and transparency was essential for establishing democracy on a strong footing for which they all had rendered great sacrifices in the democratic history of the country. 5. The current PAC under Rule 160 of the Provincial Assembly of Balochistan, Rules of Procedure and Conduct of Business, 1974 was constituted on 1st April, 2019 having in hands the responsibilities/functions as envisiged in Rule 161. 6. Soon after its constitution, PAC decided to examine the Report of the Auditor General of Pakistan on the Accounts of Government of Balochistan for the financial year 2016-17 (the latest Audit Report in hand) though this Committee inherited a backlog of around 30 years’ Audit Reports. The PAC examined the Appropriation of Accounts and Audit Report 2017-18 within one year’s period. PAC held thirty-five (35) marathon sessions examining 16 Appropriation Accounts, 18 Public Financial Management Issues and 154 Audit Paras/ observations. The Committee completed its task with the denotation, transparency and guidance to the Institutions for corrective actions. The Committee also kept a regular check on the progress of implementation of directives issued to the departments. 7. As a result of the committee’s efforts, large amounts of Government funds were recovered. During the period from April, 2019 to February, 2020 the Auditor General Office verified recoveries amounting to Rs. 1,024.94 million. Various issues which remained unresolved for years got settled due to the Committee’s intervention. Similarly pending issues between various departments were resolved.
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