FY 2018-19: Cabinet directs Nadra to float tender for auditing accounts

The federal cabinet has directed National Database & Registration Authority (Nadra) to float tender after developing selection criteria to acquire services of an audit firm to conduct its audit of accounts for the financial year ended June 30, 2019, official sources told Business Recorder.

Nadra was established in 2000 through Nadra Ordinance, 2000. Under Section 27 of Nadra Ordinance, 2000, the accounts of Nadra are to be audited by the Chartered Accountant firm, appointed by the federal government in consultation with Auditor General of Pakistan from a panel of Chartered Accountants proposed by the Authority, on such remuneration, as the federal government may determine.

To select the Chartered Accountant firm in order to conduct audit of Nadra for the financial year 2018-19, Nadra floated a tender wherein the following firms participated: (i) M/s Horwath Hussain Chaudhury & Co;(ii) M/s Riaz Ahmed & Co;(iii) M/.s Baker Tilly International;(iv) M/s Ilyas Saeed & Co;(v) M/s Munif Ziauddine &Co; and (vi) M/s KMG Taseer Hadi & Co.

The panel of six Chartered Accountant firms was submitted to Chairman Nadra as the Members of Nadra Authority (Board) has completed its term of three years and fresh appointment of Members has not been made under section 3(3) of Nadra Ordinance 2000. In the absence of Members of Authority, Chairman Nadra, being the competent authority under section 3(3) and 3(9) of the Nadra Ordinance, 2000, proposed M/s Horwath Hussain Chaudhury & Co. (the highest scorer/ lowest bidder) to be appointed as external auditor to conduct the audit of Nadra for the financial year 2018-19.

Concurrence of Auditor General of Pakistan (AGP) was solicited under section 27(2) of Nadra Ordinance, 2000 which accorded concurrence for appointment of M/s Horwath Hussain Chaudhury & Co to audit the accounts for the year 2018-19 of Nadra at an audit fee of RS 989,000 including out of pocket expenses, as per terms and conditions approved by Nadra.

Since the federal government was the competent authority to appoint the auditors for conducting audit of Nadra accounts as required under section 27(2) of Nadra Ordinance, 2000, Interior Division solicited approval of the Cabinet under section 27 of Nadra Ordinance, 2000 for the appointment of M/ s Horwath Hussain Chaudhury & Co to audit the accounts of Nadra for the year 2018-19 at an audit fee of Rs 989,000 including out of pocket expenses, as per terms and conditions approved by Nadra.

During discussion, it was pointed out by members of the Cabinet that Nadra was a very large institution and the audit of its accounts should be carried out by one of the top ranking Chartered Account firms. It was also opined that the selection criteria in such cases should focus on hiring the services of leading firms to ensure quality of the audit.

After detailed discussion on the proposal submitted by the Interior Division and not approving the proposal to appoint M/s Horwath Hussain Chaudhry & Co as Nadra's auditors it directed Nadra to float the tender again after developing the selection criteria in such a manner that services of one of the four leading audit firms could be acquired.