Recoveries in 2020-21: AGP detects inadmissible cash awards to 202 Customs officials

ISLAMABAD: The Auditor General of Pakistan (AGP) has detected inadmissible payment of cash rewards to 202 Customs officials, who were not directly involved in recoveries or confiscation of goods during 2020-21.

The audit report of the AGP of the Federal Board of Revenue (FBR) revealed that according to Customs Cash Reward Rules issued vide SRO 1386(1)/2012, the amount of reward in cases involving evasion of duty and taxes and confiscation of goods shall be sanctioned after realisation of the duty and other taxes involved.

In case of official BS 1-16, the reward should not be paid more than 40 per cent of working strength subject to the availability of funds under the relevant head of account. The certified copy of total working strength of staff is also required to be placed on record before processing and sanctioning the rewards.

During audit of financial year 2020-21, the audit observed in 10 field offices of the FBR, cash reward was sanctioned and paid to officers/officials in violation of reward rules. The cash reward was paid to 202 officers/officials who were neither instrumental nor directly involved in the process of recoveries. This rendered the payment of cash reward of Rs14.65 irregular.

The department informed that nomination for cash reward to employees was carried out after examining the performance of the employees throughout the year, on completion of every financial year. The cash reward was paid to the employees who were nominated by the committee under the supervision of the Collector of Customs.

The departmental accounts committee (DAC) directed the department to submit a comprehensive reply to the AGP for verification to the effect that cash rewards were paid and sanctioned as per Reward Rules, 2012 and eligibility criteria/circular issued by the Board for processing and sanction of reward.

The DAC directed to report progress to the AGP as the AGP recommended expediting the recovery from the concerned officers/officials. Action needs to be taken against the persons held responsible for the irregular sanctioning of the cash rewards, the AGP report added.

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