PAC seeks advice with a view to bringing regulatory bodies under AGP

To end financial autonomy of regulatory bodies and to bring them under the Auditor General of Pakistan for settling their accounts, National Assembly's Public Accounts Committee (PAC) is seeking advice from Ministry of Law and Justice.
According to sources, PAC Secretariat has written a letter to Ministry of Law and Justice and asked their suggestions to make regulatory bodies accountable to PAC. The regulatory bodies are showing resistance and claiming that they have been provided financial autonomy by their Ordinances. The PAC is considering to carryout special audit of these regulatory bodies after the advice of Law Ministry, sources said.
Sources said there were considerable number of audit paras pending with Auditor General of Pakistan (AGP) regarding irregularities in procurement and unauthorised recruitments in Pakistan Telecommunication Authority (PTA), National Electric Power Regulatory Authority (Nepra), Oil and Gas Regulatory Authority (Ogra).
The Members of PAC are of the opinion that each department which receives funds from the government treasury is accountable to PAC for settlement of its accounts. They all received seed money from federal government to start their businesses.
During review audit of Ogra's accounts, AGP observed that irregular expenditure of Rs 7.224 million was made on procurement of vehicles when ban was clamped.
The Cabinet Division endorsed the decision taken at the level of National Economic Council regarding ban on purchase of new vehicles with effect from May 30, 1998.
Contrary to this, the management of Ogra purchased 10 vehicles valuing Rs 7.224 million from November 2000 to February 2004. Auditor Office opined that approval of competent authority for the purchase of vehicles as per laid down criteria was not obtained, therefore, the expenditure made thereon was considered irregular.
The officials of Ogra say section 3(2) of the Ogra Ordinance provides that the Authority shall be independent in the performance of its functions and shall acquire and hold property, both moveable and immovable. Accordingly, the status of the Authority was defined as an organisation independent of government control by the Establishment Division.
A budget committee constituted by the Federal government in March 2005 has Member representing Finance Division. Therefore, the executive orders issued by the Cabinet Division are not applicable to Ogra, as it generates its own funds and is not being financed by the Federal Government wholly or partly.
In another matter, Auditor General Office pointed out that PTA Chairman sanctioned 'Eidi' for himself and the employees of PTA without provision in laid down rules and regulations.
Sources said PAC would convene a meeting of Cabinet Division with these regulatory bodies to resolve the issue in the light of comments given by the Ministry of Law and Justice.