The Auditor General of Pakistan (AGP) has detected misappropriation and irregularities amounting over Rs 894 million in its audit report on the accounts of Ministry Foreign Affairs. In its audit report on the accounts of Ministry of Foreign Affairs, audit year 2017-18, the auditors founds unauthorised procurements violating PPRA Rules-2004 to the tune of Rs 138.715 million.
Contrary to the rules and directives, Ministry of Foreign Affairs and its Missions abroad incurred expenditure worth TL 15,250, SRLs 75,146, Baht 949,000, 150,372, CHF 13,023 US $ 25,222 and Rs 10.868 million on purchase of physical assets, etc, without observing codal formalities and without approval of the Austerity Committee. Thus the whole expenditure was held irregular.
Audit is of the view that due to weak financial discipline, irregular expenditure was incurred, adding that the matter was reported to the Missions abroad on conclusion of audit and Ministry in September 2017 replied that all procurements were made without committing any irregularity. The auditors were of the view that the reply was not satisfactory, as the expenditure was incurred by splitting indents and avoiding tendering. Further, procurements were made during ban period, it noted.
The auditors also detected non-production of record involving Rs 85.324 million. According to Section 14 of the Auditor General's Ordinance 2001 (Function, Powers and Terms/conditions of Service), the Auditor General shall, in connection with the performance of his duties under this ordinance, has the authority to require any accounts, books, papers and other documents which deal with or form the basis of or otherwise relevant to the transactions to which his duties in respect of audit extend, shall be sent to such place as he may direct for his inspection.
Further, Section 14(3) of the said ordinance states that any person or authority hindering the audit functions of the Auditor General regarding inspection of accounts shall be subject to disciplinary action under the relevant Efficiency and Discipline Rules, applicable to such person(s).
Contrary to the above statutory provisions, the Ministry and its Missions abroad did not produce the auditable record as detailed below: Audit is of the view that due to weak managerial controls auditable record was not produced.
Matter was reported to the Ministry and the concerned missions. Management replied that al record is available and ready for verification. However, no record was provided for audit verification.
DAC in its meeting held on 20-21.12.2017 directed the Ministry to provide all the record for verification by audit. However, no 'record was provided till finalisation of the Audit Report.
Audit recommends that matter be inquired to fix responsibility for non-provision of record and requisite record be produced for audit verification. The report also observed unauthorised payments in cash instead of crossed cheques to the tune of Rs 91.876 million. As per para-13.12.1 of FMMA (Vol-II), the limit of cash payment in respect of Pakistan's Missions abroad has been fixed at Rs 5,000. Payment more than Rs 5,000 has to be made through cheque in compliance with the Rule-157 of FIR Vol-I.
The report observed unauthorised expenditure on contingent paid staff appointed without approval of AFS (E) of Rs 84.287 million. According to instructions contained in Para 11(A) (V]) of the "Revised System of Financial Control and Budgeting, 2006", contingent paid staff can only be appointed with the prior authorisation/approval of Additional Finance Secretary (Expenditure).
Contrary to the above, various Missions abroad and the Ministry appointed contingent paid staff and incurred an expenditure of Rs 31.682 million, TL 57,322 and 7012, during the period 2012-16, without getting prior approval of the AFS (E), which resulted in unauthorised expenditure.
Audit is of the view that due to weak managerial discipline such appointments were made by violating the rules resulting in irregular expenditure from the public exchequer.
The matter was reported to the management and Ministry in September 2017. The Ministry replied that the matter for regularisation of expenditure on account of employment of contingent paid staff was being taken up with Finance Division. Approval of the same as and when received would be conveyed to Audit.
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