PAC body fails to decide govt share in profit of NLC

ISLAMABAD: The Implementation and Monitoring Committee of the Public Accounts Committee (PAC) Thursday failed to make a decision with regard to the government share in profit of the National Logistic Cell (NLC) while deferring the matter till the next meeting and sought the details from department of Auditor General of Pakistan and Ministry of Planning and Development about the notification of Finance Ministry as well as rules for the boards of government of NLC.

The meeting of the Implementation and Monitoring Committee of the PAC was held with the chair of its convener Rana Afzaal Hussain in which the implementation of directives of the PAC for the year 1999-2000, 2005-06 and 2008-09 were examined.

Examining the implementation status of audit para relating to NLC, Secretary Planning and Development Division Shoaib Siddiqui told the committee that there was only recommendation for payment of share of profit from the NLC to the government but no directive for this purpose as there is no clause of sharing of the profit with the government. “The Board of Governors of NLC examined the PAC recommendations and it was decided that the NLC will not share the profit with the government but use it for public welfare purposes,” he told the committee.

PAC member Mehmood Khan Achakzai observed that the PAC in the year 2012 issued clear directives in this regard and seemed that it was departmental negligence and in this situation how the country would progress.

The Audit officials said the department of the Auditor General of Pakistan (AGP) was not sharing the NLC gave the money from their accounts bit only saying that PAC directives should be implemented in letter and spirit. “Our task was not to make decision but to point out and Finance Ministry could take the decision but they seem reluctant to refer the issue to the Finance Ministry,” the audit officials told the committee.

The representative of the Finance Ministry in the meeting said that federal secretary is a member of the NLC board and if the PAC has made any recommendation than this matter could be sent to Finance Ministry to make a decision after examining the issue.

Secretary Planning and Development said the law and audit is our strength and he took a principle stance that all the federal secretaries are the members of the board and the board in empowered to take the decisions.

Director legal of NLC told the committee that on the directives of the PAC, the DAC was constituted and this matter was presented before the board in which the federal secretaries were also present and no one has given the note of dissent. “The NLC did not take any funds from the government and always came forward to assist the government in the relief operations in natural calamities,” he said.

Convener Rana Afzaal observed that the finance secretary was part of the decisions of the board being its member. The Audit officials said the finance secretary cannot make any decision as a secretary being a member of the Board.

Secretary Planning and Development Division said Secretary Finance represents the Finance Ministry in the board otherwise there was no justification to make the secretary as a member of the board. “If the board decisions were ignored then there was no utility of having the board,” he remarked.

The representative of the Finance Ministry said that when the issue be referred then section officer sent the file to secretary after fulfilling all the stages and legal obligations and it contains the opinion of all the officers.

The secretary Planning and Development said they will implement the directives of the PAC. The DG Audit sought time of two days and said that he will present the PAC the notification of the Finance Division of 2012 in which it is as clearly mentioned that board decision did not mean that it was a decision of the secretary. “The secretaries attend the meetings of the board as a member of the board not as a federal secretaries,” the audit officials told the committee.

Secretary Planning and Development did not agree with the board and said the federal secretaries did not attend the board meeting in their personal capacity but as a Principle Accounting Officers of their respective ministries while the NLC is an independent department. ‘The funds were given to NLC not for the business but for its res-structuring,” he told the committee.

Member legal NLC said the funds were given for restructuring and to build station not for the investment and after it the NLC did not take any single penny from the government accounts. The committee of the PAC deferred the issue till next meeting and directed the Audit Department o present their written recommendations to the Public Accounts Committee to make the decision on it. The committee of the PAC also directed to present the rules and procedures of the board of NLC to the committee in its next meeting.