Sunday , March 9 2025

PAC questions spot purchases and lack of CFOs in ministries

The Public Accounts Committee (PAC) recently held a meeting, chaired by Junaid Akbar, to review audit paras related to the Atomic Energy Commission, Pakistan Nuclear Regulatory Authority, and the Federal Board of Revenue (FBR).

During the meeting, the Auditor General of Pakistan revealed that 15 ministries are operating without a Chief Financial Officer (CFO), raising concerns over financial management and transparency.

One of the key issues discussed was the spot purchase exceeding one billion rupees made by the Atomic Energy Commission. The PAC questioned the Chairman of the Commission about the rationale behind such a large procurement. Umar Ayub criticized the approach, stating that such purchases should be planned in advance rather than made in emergency situations.

Adding to the debate, Riaz Fatyana pointed out that the purchase was made over a period of three to four months, suggesting that it did not qualify as an emergency. However, officials from the Atomic Energy Commission defended the decision, stating that their National Command Authority allows emergency procurements when necessary. This explanation did not satisfy all members, as Khawaja Shiraz questioned the legitimacy of the purchase, saying, “If paint and air conditioners are being bought under the pretext of emergency purchases, then serious questions need to be asked.”

In response to the criticism, Umar Ayub asserted that the Atomic Energy Commission is not a sensitive institution but rather a facility-based organization, similar to a nuclear power plant. He urged the officials to acknowledge their mistake and ensure greater caution in future procurements. The Chairman of the Atomic Energy Commission assured the committee that their concerns were noted and that appropriate measures would be taken to prevent such issues moving forward.

The discussion then shifted to broader concerns about financial oversight and accountability. Umar Ayub emphasized the need for systematic reforms, suggesting that performance audit reports should also be reviewed by the committee. Tariq Fazal Chaudhry echoed these concerns, stressing the importance of reforming the audit system to ensure better financial governance.

During the meeting, the Secretary of the Law Ministry appeared before the committee and apologized for the absence of ministry officials in previous sessions. He assured the members that going forward, officials from the Law Ministry would be present in future meetings. However, PAC Chairman Junaid Akbar expressed his dissatisfaction, pointing out that no representative from the Law Ministry had attended the last five meetings. In response, the Secretary of Law Ministry guaranteed that a Grade 20 officer would be present at all future sessions.

Further concerns were raised by the Auditor General of Pakistan, who disclosed that several ministries are not complying with internal audit regulations. He noted that many government departments fail to implement internal audit laws, a matter that has also drawn objections from the International Monetary Fund (IMF) due to pending audit paras.

As the meeting concluded, the Public Accounts Committee underscored the need for greater financial transparency, stricter accountability measures, and immediate reforms to improve internal audit mechanisms across government institutions.

About Aftab Ahmed

Check Also

Pakistan-IMF Talks: Tough fiscal measures and expanded tax net on the horizon

The negotiations between the Government of Pakistan and the International Monetary Fund (IMF) have entered …

Leave a Reply

Your email address will not be published. Required fields are marked *