ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved Rs 433 million for National Accountability Bureau (NAB) to clear outstanding liabilities of British firm M/s Broadsheet LLC London and lawyer's fee, well-informed sources told Business Recorder.
Sharing details, the sources said, that M/s Broadsheet LLC pursued a case of arbitration against the government of Pakistan, through the National Accountability Bureau (NAB) in the Chartered Institute of Arbitration, London.
The Arbitrator issued Part Final Award (Quantum) and Part Final Award (Costs) for $ 27,226,590.50 with interest enforced after 60 days from the respective orders of the High Court of Justice, London.
The details of liabilities on this account were as follows: (i) interest on award (quantum) - $ 1,023,049; (ii) interest on award (costs)- $ 221,161 and; (iii) short amount earmarked during the preceding financial year for liability - $ 1,073,179.29. The total was $ 2,317,389. In addition fee of foreign lawyers/law firms was £ 150,000.
The forum was further informed that the above details reflected that a liability of $ 2,317,389.29 was outstanding in addition to the liabilities on account of fee of foreign lawyers/law firms for £ 150,000, which were equivalent to a total of Rs 433.091 million, against the government of Pakistan.
The NAB has claimed that during the current financial year, it was facing serious budgetary stringencies. Due to paucity of funds, the NAB was not in a position even to meet its recurring expenditure within the authorized budget grant.
The anti-graft organization, which is also under criticism for allegedly "one sided" accountability of government's political opponents, says that in view of the financial constraints against mandatory expenditures relating to the part final award (quantum) as well as (costs), along with interest a budgetary shortfall of Rs 433.091 million had been envisaged for allocation of additional financial resources.
A summary presented to the ECC says that to meet the charges Finance Division had provided funds of Rs 433.091 million out of their own budgetary resources enabling NAB to initiate a case for allocation of a technical supplementary grant of the equivalent amount.
The NAB requested the ECC to accord approval for allocation of a Technical Supplementary Grant of Rs 433.091 million, in terms of Article 84 of the Constitution of Islamic Republic of Pakistan 1973, in favor of NAB to meet the budgetary requirements.
During the ensuing discussion, Additional Secretary, Cabinet Division drew attention of the ECC to the observation made by Finance Division that the summary should be routed through Law and Justice Division. The Secretary, Finance Division stated that proposal had already been concurred and supported with remarks that NAB should route their summary to the ECC through Law and Justice Division.
The Chairman, ECC invited comments of Law and Justice Division who opined that Chairman, NAB being Principal Accounting Officer (PAO), had full authority in respect of administrative and financial affairs of the NAB. Therefore, the summary may be approved by the ECC.
Copyright Business Recorder, 2020