PAC asks President Forego monetary discretionary powers

ISLAMABAD - Public Accounts Committee (PAC) of the National Assembly has said that President Asif Ali Zardari should set an example for others to abolish his financial discretionary powers. The PAC also expressed its grave concern over waiving off loans by Central Bank and other banks and summoned State Bank senior officials in its next meeting along with details of the loans. The PAC also sought the report about the implementation of putting the name of Karachi Port Trust (KPT) ex-Chairman Admiral (Retd) Ahsan Hayat on Exit Control List (ECL), within two days. In the previous meeting, the PAC had recommended to the government to put the name of KPT ex-Chairman in ECL. The PAC met here on Tuesday at Parliament House. Leader of Opposition in the National Assembly Chaudhry Nisar Ali Khan chaired the meeting. The Committee reviewed the Audit Reports 2005-06 of Ministry of Finance and Finance Division. Audit objections for the year 2005-6 in respect of Aiwan-e-Sadr and Prime Minister Secretariat were also discussed in the meeting. Audit Reports exposed a total of Rs 19.385 billion and Rs 726.41 million of irregularities and embezzlements in Finance Ministry and Finance Division, respectively, during discussions in the meeting. The Committee reviewed the audit objections about the expenditures, allowances and perks and privileges of Aiwan-e-Sadr during the tenure of former President General (Retd) Pervez Musharraf. During discussions of audit paras, Suleman Farooqui, Secretary General to President Asif Ali Zardari told the meeting that no amount was being spent without maintaining its record in Aiwan-e-Sadr. He added that discretionary powers and funds were very critical in the developing countries. PAC Chairman Chaudhry Nisar Ali Khan said that discretionary powers of the presidency were deliberately misused during the regime of General Pervez Musharraf. He said that President Asif Ali Zardari should set new example by abolishing his financial discretionary powers on the pattern of UK and India. He said that in the neighbouring country, India, the Prime Minister and the President had no financial discretionary powers. The PAC Chairman also expressed his resentment over the high price of petroleum and gas and load- shedding in the country. He said that the price of petroleum products had been decreased in the international market but the government did not decrease it so far. It was a big burden on the poor, he said. He added that the country had capacity to generate power but many plants had been closed down due to non-payment of their dues. The Secretary General said that the government was getting Rs 18 to 20 billion per day from petroleum products. He said that a meeting was held on Monday to review the petroleum price. The Committee had sought a report within one month on obtaining additional commission amounting to Rs 295 million on national savings schemes. During discussion of audit report, the audit official told the meeting that House Building Finance Corporation (HBFC) could not recover Rs 503.14 million. He said that non-recovery despite lapse of a considerable period of 15 years indicated lack of internal control as well as ineffective recovery management, which resulted in blockage of huge funds of the Corporation. The PAC Chairman directed the Corporation to evolve comprehensive policy for recovery of loans within a month besides categorizing the borrowers. He said that in this regard, the Secretary General should appoint a good officer who should pursue this matter. He said that the efforts of the officer should be pro-active and the base of categorization. Expressing dissatisfaction with the current budget-making process, Chaudhry Nisar Ali Khan said that recommendations would be sent from the PAC platform to Parliament for amendment in the rules in order to make budget-making process coherent. Secretary Suleman Farooqui told the meeting that the Capital Development Authority (CDA) was an autonomous body and there was a dire need for legislations to improve its internal system. He said that the legislations were being made to render the CDA more effective and also to computerize its systems.

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