PAC directs ministries to strengthen financial controls

08 Jul, 2004

Public Accounts Committee of the National Assembly has expressed its dissatisfaction over non-surrender of Rs 426 million in respect of six different grants of Ministry of Food, Agriculture and Livestock (Minfal) for 2000-01.
The PAC also directed the ministries and divisions of the federal government to strengthen their internal financial controls and strictly monitor utilisation of their budgetary allocations.
The Committee, which met here on Wednesday under the leadership of its Chairman Malik Allah Yar Khan, MNA, took up appropriation of accounts and audit report of the Food Ministry for financial year 2000-01.
The committee regularised various audit observations subject to the confirmation by the Audit Department and as recommended by the Departmental Accounts Committees (DACs).
The PAC Chairman also asked the ministries not to demand unnecessary supplementary grants and surrender the unspent amounts and savings within the time stipulated by the Finance Ministry.
The PAC constituted a sub-committee to conduct probe into the loss in purchase of DAP fertiliser worth $0.134 million at higher rates. The sub-committee would submit its report and suggest penalties against the people responsible for the loss to the national exchequer to the PAC within one month.
Discussing the audit paras pertaining to the loss incurred by accepting defective fertiliser worth $1.752 million, the PAC ordered for penalisation of supplier and initiation of disciplinary action against the director, Fertilizer Import Department (FID).According to details given by the Audit Department, a consignment of 31,475 tonnes of DAP fertiliser was procured from Conagra Ltd.
Upon arrival at the Karachi Port, a test was conducted which revealed that the fertiliser was nutrient deficient according to the purchase manual of FID and was accepted which caused a loss to the national exchequer.
The PAC directed the ministry to inform the committee about the progress of the inquiry proceedings within one month.
The PAC also asked Pakistan Central Cotton Committee (PCCC) to establish a strong system of internal control, proper record keeping and computerisation of record.
The PAC chairman directed the PCCC management to enhance the funds allocation for research activities and proper accounting of cotton cess recovered or recoverable so that it could be properly realised and maintained.
MNAs Muhammad Safdar Shakir, Ghulam Sarwar Khan, Riaz Fatyana, Kanwar Khalid Yunus, Liaquat Baloch, Major Tanvir Hussain Syed (Retd), Maulana Abdul Ghafoor Haideri, Lieutenant Colonel Ghulam Rasool Sahi (Retd), Hafiz Hussain Ahmed, Wasi Zafar, Chaudhry Qamar-uz-Zaman Kaira, Professor Asiya Azeem, Syed Qurban Ali Shah, Makhdoom Shah Mehmood Qureshi and Makhdoom Khusro Bakhtiar attended the meeting.

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