A substantial amount of Rs 18.566 billion allocated for Zakat Fund during 2002-03 is still lying unutilised, highlighting the casual approach of officials towards poverty-stricken people. This alarming situation was revealed in the 'Audit Report on the Accounts of Central Zakat Fund-National Level Health Institutions year 2003-04'. Such a huge unspent balance reflects that institution of Zakat Fund is not working optimally despite requirements of Shariah for prompt distribution of Zakat money, and for decreasing poverty level in the country.
According to the report, sums of Rs 40 million, Rs 400 million and Rs 200 million were allocated to Northern Areas, National Level Health Institutions, and emergency relief, respectively, out of total budget of Rs 4.710 billion, during 2002-03.
The remaining amount of Rs 3.540 billion was distributed to provinces and Islamabad Capital Territory as follows: Punjab 56.95 percent; Sindh 23.53 percent; NWFP 13.78 percent; Balochistan 5.11percent; and ICT (0.63 percent).
In addition to regular Zakat disbursement programs, a sum of Rs 5 billion was allocated for permanent rehabilitation scheme.
A sum of Rs 22.1 billion was available in Central Zakat Fund (CZF) on July 1, 2002, while an amount of Rs 6.291 billion was also received during 2002-03.
Out of available funds, a sum of Rs 9.833 billion was released in two instalments to Provincial Zakat Administration, Islamabad Zakat & Ushr Committee, NA Zakat Council and National Level Health Institutions (NLHIs) for disbursement to 'Mustahaqeen' through district/local Zakat committees, MORA scholarship committees and health welfare committees of health institutions during 2002-03.
It was observed that substantial amount of Rs 18.566 billion was lying undisbursed in the central Zakat fund on June 30, 2003, after making releases to all Zakat disbursing authorities for the year 2002-03.
The irregularities are summarised as extra charge on Zakat fund, purchase of medicines without open tendering, payment without determination of 'istehqaq' (eligibility) of patients by the Local Zakat Committees (LZCs), payment to suppliers in cash/through open cheque, unauthorised deduction of bank charges, non-surrender of unspent balances and non-deduction of income tax.
It was felt by audit that Permanent Rehabilitation Scheme had not been evaluated in order to assess its impact on poverty reduction.
The report further points out that the lengthy and cumbersome procedure of assistance from Zakat fund to serious patients is agonising, specially in cases of chest infection, diarrhea and high fever.
In most of the cases health welfare committees procure medicines without calling open tenders through advertisements in newspapers to ensure most economical purchases, and even without executing a written contract agreement with the suppliers.
It was also said that Zakat committees, especially local Zakat committees and health welfare committees, do not surrender unspent balance at the year end, despite instructions of central Zakat council.
Recommendations: The report suggests that measures are required to ensure full utilisation of Zakat fund so that it could bring benefits to poor/indigent people and help reduce the poverty level.
It is recommended that unauthorised extra charge to Zakat fund should be got refunded. Steps need to be taken to ensure that Zakat fund is utilised for authorised purposes only in accordance with the procedure.
Government rules and regulations regarding procurement of stores should be followed while purchasing medicines. It should be ensured that medical facilities are extended to patients after verification of their 'istehqaq', as per laid down procedure.
The report also recommended that payments to medicine suppliers should be made through crossed cheques while unspent balance should be refunded to Central Zakat Fund.
Instructions of central Zakat council regarding surrender of unspent balances at the year-end should be adhered to invariability and punitive action taken against person(s) at fault.