The Public Accounts Committee (PAC) Thursday directed the secretary Privatization Commission (PC) to conduct an inquiry into the financial embezzlement of Rs 5.7 billion against the concerned officials and provide a report to PAC within four weeks.
The PAC which met here under the chairmanship of Rana Tanveer Hussain passed these directions while discussing and reviewing audit paras of the Ministry of Privatization for the year 2012-13. The meeting was informed by the officials of the Auditor General of Pakistan (AGP) that officials of PC during 2007-12 deposited Rs 5.7 billion in various commercial banks in violation of set rules and regulations in the name of investment.
The AGP said that as per law, PC was bound to only invest in National Bank of Pakistan.
The AGP report, however, said that "the management of Privatization Commission invested Rs 5.7 billion during 2007-2012 in different financial institutions."
Briefing the panel, the secretary PC said that the point of view of the PC was altogether different on the matter of investment in private banks, adding that apparently the investment was not in line with the set rules, therefore the PC initiated an inquiry on the matter under the Executive Director General, but the inquiry did not complete.
Briefing the panel, the officials of National Accountability Bureau (NAB) informed the PAC that a reference would be filed against the bankers as well as officials of the Privatization Commission (PC) for above irregular investments.
The auditors pointed out that under section 16 (1) of the Privatization Commission Ordinance, 2000, the "Commission shall establish and maintain a distinct and separate Privatization Fund in which all privatization proceeds shall be deposited."
The auditors observed that "the investments were made without the guarantee of the government and the approval of Finance Division was not obtained."
The Audit is of the view that the investments were irregular, unauthorized and in violation of the government instructions, as well as the Privatization Commission Ordinance, 2000. According to audit report, the possibility of extending undue favor to these banks also cannot be ruled out.
The PC's management replied that the funds remain at their disposal for an interim period and the profit has been reflected in the annual audited accounts.
The audit officials said that the reply of the PC's management was not acceptable because the investments were a violation of government instructions.
PAC Chairman Rana Tanveer Hussain asked the NAB as to why the matter is being lingered on for over 7 years. The director operations of NAB replied that the inquiry has been completed and the investigations are in progress.
Hussain expressed displeasure and said if there had been a politician, the inquiry might have been concluded in weeks.
NAB's representative told the committee that a politician, ex-senator Waqar Ahmed Khan of Pakistan People Party (PPP), was also involved in this scam.
During the meeting, member committee Noor Alam Khan was snubbed by the chairman PAC for interacting with the Privatization Ministry's official without seeking prior approval of the chairman.
"You have to follow the rules," Hussain said, adding that the rules never permit a member of PAC to ask any question from the Principal Staff Officer (PAO) of a ministry without the permission of the chair.
When Hussain took up an audit report related to appropriation of accounts of the PC, Alam objected and said that the PTI agreed for giving the PAC chairmanship to opposition on the condition that the audit paras related to the PML-N era must not be placed in the main committee headed by the member of the opposition party.
The committee was informed by the secretary PC about Rs 500 million investment made by the PC in Trust Bank and so far the amount has mounted to Rs 630 million of which Rs 490 million have been recovered while Rs 140 million are outstanding.
The NAB officials said that the bureau helped PC recover Rs 410 million out of Rs 490 million.
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