Rs7.71 Billion Discrepancy in Balochistan’s Official Accounts

Matter of Possible Recovery of Rs118.5 Million Under Discussion in PAC

Revelation of Excess Payment of Rs3.604 Million Under Additional Charge Allowance in BUITEMS

Public Accounts Committee Meeting Takes Strict Stance on Protection of Public Exchequer and Financial Irregularities

QUETTA (Daily Qudrat): The first meeting of the Public Accounts Committee of the Balochistan Provincial Assembly was held in Committee Room No. 43 of the new Assembly building under the chairmanship of Chairman Asghar Ali Tareen, in which a detailed review was made of the financial accounts of government departments, audit objections and financial matters related to Balochistan University of Information Technology, Engineering and Management Sciences (BUITEMS). The committee, expressing concern over the discrepancy of billions of rupees in government accounts, violation of scholarship agreements and excess payment of additional charge allowance, issued directions to the relevant authorities to settle the audit objections.

The meeting was attended by committee members Rahmat Saleh Baloch, Wali Muhammad Norzai and Zabid Ali Riki, as well as Secretary Balochistan Assembly Tahir Shah Kakar, Accountant General Balochistan Nasrullah Jan, Director General Audit Shuja Ali, Secretary Finance Muhammad Jahangir Kakar, Special Secretary Public Accounts Committee and Questions Siraj Lehri and Additional Secretary Law Saeed Iqbal.

In the first session of the meeting, the certification audit report of the Accountant General Balochistan was reviewed. At the outset, the chairman and members expressed concern over the absence of the Secretary Finance. Rahmat Saleh Baloch said that the presence of the Secretary Finance is necessary in such an important financial meeting as the certification audit so that direct clarification can be obtained on the relevant matters. Later, the Secretary Finance joined the meeting and gave a briefing on financial matters.

In the audit report, the matter of discrepancy between the cash balance of government funds and book accounts, as well as non-conformity with bank records, came to light. The committee was told that as of 30 June 2023, the balance of the relevant accounts in the financial statements was more than Rs23.6 billion, while in the State Bank’s record this amount was about Rs15.29 billion. Thus, a discrepancy of about Rs7.71 billion existed between the two records.

According to audit officials, the reasons for this discrepancy include lack of proper maintenance of financial records, non-posting of unpaid cheques and non-reconciliation of accounts with the State Bank and National Bank in a timely manner. Chairman Asghar Ali Tareen, expressing anger over this situation, said that the failure to reconcile government financial records in a timely manner raises questions about the Finance Department’s oversight system.

Committee members raised the question of why this matter, pending for several years, has not been resolved and who is responsible for it. They directed the Finance Department to establish a permanent system to ensure regular reconciliation of all financial accounts with the State Bank and National Bank. Secretary Finance Muhammad Jahangir Kakar acknowledged that monthly reconciliation of financial accounts is the responsibility of the Finance Department and assured that this process will be completed at the level of every district with the cooperation of the Accountant General, State Bank and National Bank.

PAC members Zabid Ali Riki, Wali Muhammad Norzai and Rahmat Saleh Baloch said that some departments, including the Finance Department, do not implement the committee’s directions, which is a cause for concern. Chairman Asghar Ali Tareen made clear that reviewing the use of government resources, financial accounts and audit objections is the committee’s basic responsibility. He directed all relevant departments to complete implementation on audit paras and pending objections within one and a half months, otherwise action will be taken against the responsible officials in accordance with the rules.

In the second session of the meeting, audit objections related to BUITEMS were reviewed, in which Vice Chancellor Professor Dr Khalid Hafeez and relevant university officers participated.

Before the committee, the matter of violation of agreements of 63 lecturers and assistant professors sent abroad by the university for PhD scholarships was presented. According to audit officials, the matter of possible recovery of Rs118.545 million from these scholars is pending, because only 12 scholars reported back within the stipulated period, while despite violations of agreements by others, the due amount and penalties could not be recovered.

Audit officials said that under the relevant policy, scholarship expenses and a penalty of up to 25 percent can be recovered from scholars who violate the agreement. The university administration told the committee that absent scholars are being given the facility to repay the bond amount in instalments within one year, while letters have also been sent to the Federal Investigation Agency, the embassies of the relevant countries and the universities. According to the administration, for future scholarships, conditions such as bonds according to the dollar’s value, making government employees guarantors and property guarantees are being made effective.

The committee, seeking further clarification from the university administration, stressed ensuring the protection of government resources and implementation of scholarship agreements.

In another audit objection related to BUITEMS, the matter of excess payment of Rs3.604 million under additional charge allowance came to light. According to the audit report, during 2019 to 2021, instead of Rs2.295 million, Rs5.899 million were paid, while some officers were given additional charge allowance for a period longer than the stipulated six months. The university administration said that post-facto approval has been obtained in this matter.

The PAC chairman stressed the need to improve compliance with financial rules, administrative transparency and the internal oversight system in this matter. He said that financial discipline and protection of public resources in government institutions and universities should be the foremost priority, and practical steps should be taken for the redressal of audit objections, recovery of amounts and determination of responsibilities.