The National Accountability Bureau (NAB) has sought supplementary grant of Rs 750 million from the federal government, as financial constraints has caused an adverse impact on its operational activities, sources close to Chairman NAB told Business Recorder. Chairman NAB recently complained that when NAB takes action against individuals of incumbent government, NAB's funds are stopped.
With a view to sustaining the accountability process and be self sufficient with regard to funds, NAB had been authorized to apply for technical supplementary grant at the specified percentage on recoveries made through its operations. The amounts on account of percentage so applied on recoveries had since not being credited in to the Federal Consolidated Fund (CSF). Finance Division had been allocating funds to NAB through Technical Supplementary Grants (TSGs) equivalent to the amounts decided as per percentage of the amount deposited into the FCF.
On a request for allocation of funds against the amount credited into the FCF, Finance Division invited views of Ministry of Law and Justice who opined that being a department of federal government, NAB may seek supplementary grant or support fund instead of claiming share.
However, Finance Division has declined NAB's proposal for allocation of additional funds, despite the fact that an amount of Rs 1.6048 billion has been credited to FCF. Finance Division has further advised the administrative Secretaries/Principal Accounting Officers to seek approval of the Federal Cabinet with prior consultation to cases of supplementary grants. Resultantly, NAB's financial resources have depleted due to non-sanction of funds by Finance Division and the financial constraints have put adverse effect on NAB's operational activities.
"Since NAB is fighting the menace of corruption, corrupt practices and white collar crimes through a holistic approach of awareness prevention and enforcement, any compromise on its operational activities in any way is not in the national interest," the sources quoted Chairman NAB as saying in the summary. The Finance Division has agreed to give Rs 750 million as supplementary grant to NAB during the second, third and fourth quarters of current financial year, the sources added.
On November 28, 2017, Ministry of Law and Justice had commented that the issue regarding sharing of amount recovered by NAB has been examined in Law Division and it has been opined that instead of claiming share, NAB being department of federal government, may seek supplementary grants or support fund.
This issue also came up for consideration before the Balochistan High Court (BHC) in April 2016, wherein the court declared NAB's share from the amount recovered on account of voluntary return and plea bargain as void. It was further observed that the entire amount received by the NAB authorities on behalf of the concerned society, statutory body or authority concerned shall be transferred to their respective accounts.
The Supreme Court of Pakistan in suo motu case number 17 of 2016 called the position of the federal government on NAB's role in respect of recovery of default in payment of utility bills
In 2000, General Pervez Musharraf, the then Chief Executive of Pakistan approved NAB's proposal of retaining a portion of money recovered/discovered through NAB's operations with a view to sustaining the accountability process and making NAB self sufficient with regards to funds as follows: (i) recovery of bank default- 3 per cent; (ii) recovery of write offs- 20 per cent; (iii) recovery from known CBR (now FBR) dues, 10 per cent; (iv) discovery and recovery of FBR dues- 30 per cent; and (iv) recovery of corruption money- 25 per cent.
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