ISLAMABAD: In an attempt to tighten the noose around the black sheep, the Public Accounts Committee (PAC) of Parliament on Wednesday referred the audit paras involving Rs312 billion sales tax controversy back to the departmental audit committee (DAC) of Federal Board of Revenue (FBR) with instructions to investigate the matter.
The PAC meeting which was held here with Junaid Akbar Khan in the chair, examined approximately 25 audit objections related to FBR, amounting to an astounding Rs807 billion related to FBR.
Senator Afnanullah Khan, a member of the top parliamentary watchdog, questioned the FBR’s ability to handle taxpayers’ money, claiming that a massive Rs803 billion sales tax issue problem occurred right under its nose but it was unaware of it, which is unacceptable.
The chairman of the FBR, Rashid Mahmood Langrial, refrained from commenting on the persistent controversies surrounding large sums of money within the FBR.
He simply stated that it is an ongoing battle against corruption, with taxpayers ultimately emerging as the victorious.
A visibly perturbed Langrial, an officer of Pakistan Administrative Service (PAS) who has recently taken over as chairman of FBR, acknowledged that an attempted corruption of Rs312 billion was prevented, but the FBR failed to stop another corruption amounting to Rs60.4 million.
The audit officials told the PAC that the FBR prohibits any audits of its Common Pool Funds (CPF) by claiming it is a private fund established for the welfare of its low-grade employees.
The FBR states that the CPF is a private fund intended for the welfare of its low-grade employees, who contribute from their own pocket and ultimately utilise it for the employees’ welfare.
“Is this organisation private? The FBR is a state entity and all its departments should undergo thorough audits,” stated Omar Ayub, a member of the PAC.
The explanation given by the FBR officials did not satisfy the PAC members, who then issued directives for establishing guidelines for auditing the board’s CPF, which has not undergone an audit since its inception.
The audit officials also told the PAC that 15 ministries do not have chief financial officers (CFOs), prompting the committee to seek a report on these ministries.
Tariq Fazal Chaudhry, a committee member, emphasised the government’s commitment to transparency and stated that any negligence or corruption in any department is unacceptable.
During the meeting, Law Secretary Raja Naeem Akbar was absent initially but arrived promptly after being informed by his officials as the committee member took strong exception to his absence.
The committee chairman asked the secretary why officials from his ministry were not present, to which he apologised and assured that a ministry representative would be present at all future meetings and be well-prepared.
Copyright Business Recorder, 2025
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