PAC dismayed over ERRA failure in verifying un-presented cheques

The Public Accounts Committee (PAC) on Tuesday expressed serious disappointment over the failure of Earthquake Reconstruction & Rehabilitation Authority (ERRA) in verifying un-presented cheques worth Rs 143.7 million from the banks since 2007-08. The subcommittee of the Public Accounts Committee met here under the chairmanship of Sardar Ashiq Hussain Gopang to review/discuss audit paras of the ERRA of 2009-10.
The meeting was informed that the ERRA in 2007-08 issued cheques amounting to Rs 143.7 million to income tax officers for depositing in banks but the authority has failed to submit the cheques to the respective banks as per record. Replying to audit objection, ERRA Deputy Chairman Brigadier Abu Bakar Bajwa said that the authority had handed over the cheques to income tax officers (ITOs). The said cheques were issued in favour of ITOs of respective circles, which were not deposited by them in the bank for payment. Now all these cheques have been cleared, the acting chairman ERRA said.
When committee member Senator Azam Khan Swati asked the audit officials to verify the ERRA claim, Director Audit Shazad Ali Khan rejected the ERRA response and said that the authority has failed to produce verified accounts to audit department as was decided in departmental accounts meeting (DAC) held on April 6, 2017.
The meeting directed the officials of ERRA to produce verified accounts to the audit department so that such a prolonged issue can be addressed. The committee while discussing the issue of operations of "extra budgetary resource fund account" was informed that no satisfactory reply has been received from finance wing of ERRA on the subject so far.
As per detail, a sum of Rs 4.25 billion was received from Islamic Development Bank (IDB) as reimbursement of expenditure made out of the government of Pakistan Fund in the bank account opened for donations. Later on the same amount was accounted for towards the government of Pakistan account as against the budgetary release. Depositing reimbursement from the IDB and its subsequent appropriation towards budgetary allocation was irregular. All receipts of the bank account should be treated as government receipts and no expenditure be incurred without prior approval of the Finance Division.