Powers vested in BoDs of autonomous, semiautonomous bodies: finance ministry asked to submit detailed report

20 Jul, 2011

A parliamentary panel on Tuesday directed finance ministry to submit a detailed report pertaining to powers vested in board of directors of each and every autonomous and semiautonomous organisations.
A special committee of National Assembly's Public Accounts Committee (PAC), which met here with Zahid Hamid in the chair, reviewed audit paras of finance division and its attached departments for years 1998-99, 2002-03 and 2003-2004.
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organisation. The body sometimes has a different name, such as board of governors, board of trustees, or executive board and their powers are so flexible that they could use them in their favour whenever they required.
Saeed Ahmad Zafar, a member of the parliamentary body said that finance ministry should protect government interest or the national exchequer would suffer in trillions if these BoDs were not brought under a specific regulatory system.
"Proper mechanism should be put in place to monitor and evaluate the performance of these bodies, having a bag full of powers. Imagine...what will happen if these boards of directors, with the power to ensure stringent corporate governance, bent the rules to attain their personal goals or return a friend's favours...the suffering of the organisation is not a matter of concern for them", he added.
The secretary finance Dr Waqar Masood Khan told the committee that 340 audit paras pertaining to finance division were divided in three categories. Giving the break-up, he added, 165 paras would be resolved in departmental audit committee (DAC), 54 will be discussed before the PAC while the remaining in litigation, would be expedited afterwards.
He said that from now onwards, the PAC would be updated on monthly basis regarding the audit paras pertaining to the finance division. The committee directed the ministry to vigorously pursue the cases and also seek assistance from Advocate General for speedy disposal of the cases.
The audit official told the committee that Pakistan Security Printing Corporation Limited purchased diesel generators worth 7.805 in 1983 but were never used for the last twelve years. The committee expressed dissatisfaction over the matter and directed for an inquiry to fix the responsibility.
This is pertinent to mention that board of directors of some autonomous and semiautonomous institutions, often misuse the powers which may have a devastating impact on the organisation, shattering its foundations.

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