The Ministry of Postal Services has moved a summary to Prime Minister for preferential treatment by granting permission to charge 1.5 percent commission on depositing utility bills in order to recover its losses which reached to two billion rupees.
Postal Service Secretary, Raja Mahammad Ikram ul Haq informed the National Assembly's Public Accounts Committee (PAC) on Wednesday. The PAC met under the chair of Nadeem Afzal Gondal. The committee reviewed the audit reports of Pakistan Post Office Department (PPO) for years 2004-05 to 2006-07.
The Secretary informed the committee that PPO was suffering losses after the Ministry of Finance reduced its commission on deposit collection of utility bills on behalf of Wasa, PTCL and Sui-Gas from 1.5 percent to 0.5 percent.
He said the PPO approached the Ministry of Finance and other ministries to raise the percentage but could not get the required relief. "Ultimately, PPO moved a summary to the Prime Minister which is pending since long", he said.
PPO Financial Advisor however, declined to give permission to PPO to increase the commission charges as the Ministry of Finance anticipated that it might open door for commercial banks and other organisations to go to courts against this preferential treatment. Director General, Auditor General of Pakistan pointed out total losses of PPO reached six billion rupees till the end of last fiscal year.
The Secretary showed its helplessness when asked to upgrade the conditions of post offices, and said federal government did not allocate any funds in Public Sector Development Programme for last three year for up-gradation of PPO.
In the past, PPO was charging commission at 1.5 percent on saving accounts for deposit collection of utility bills, but a commission of 0.5 percent was fixed on other accounts, Fazli Sattar Khan, Addl Director General (Operations) explained to members of the Committee.
To a query, the Secretary responded that PPO had reconciled an amount of Rs14 billions pension of Military Personnel.
Auditor General pointed out that PPO had irregular deposit of utility bills collection amounting to Rs1.9 billion in saving bank accounts and charging of commission amounted to Rs29.7 million during 2006-07.
PAC Chairman also took notice of the on-going strike of Accounts Group which demanded special allowances as given to staff of Prime Minister Secretariat, Presidency, Motorway Police, Federal Board of Revenue and some other departments. The Chairman said such kind of discrepancy discouraged government employees of other departments and termed it violation of constitution. He directed Ministry of Finance to appear before the committee and explain why there was no uniformity in pay structure of government employees.
On one point, Auditor General of Pakistan Rana Buland Akhtar said there was a systemic fault in carrying out audit of Ministry of Finance. Being attached department of Ministry of Finance, AGP could not independently carryout M/F's audit.