Senate body on finance to initiate probe

PanamaLeaks

Mandviwala says they will ascertain who owns offshore companies and doing business through them; politicians who concealed their assets might face disqualification

ISLAMABAD: The Senate Standing Committee on Finance on Friday decided to initiate a probe into the offshore companies owned by Pakistanis as was revealed through the Panama Papers.

The standing committee will investigate the matter under its Chairman Salim Mandviwala. Senators Saud Majeed, Mohsin Aziz, Kamil Ali Aga, Ayesha Riaz, Nuzhat Sadiq, Illyas Balour, Fateh Muhammad Hasni and Talha Mehmood would be the other members of the probing committee.

Senator Salim Mandviwala, while talking to this correspondent, said that the details of the probe into the offshore companies would be sought from all the organisations concerned and the investigation would be completed within this month. He said that the probe had been initiated to ascertain as to who had established the offshore companies and were secretly doing business through them without declaring them, and with whom they had established contacts.

He said the legal or illegal position of these companies could be ascertained. He said that no businessman could hide his business. Whoever was doing business through offshore companies, whether a politician or a businessman, would have to furnish details of the business. He said politicians who had concealed their assets might face disqualification as tax evasion through offshore companies was inappropriate and would increase tax evasion.

Earlier, the Senate Standing Committee on Finance approved the Banks (Nationalisation) Amendment Bill 2016 by inserting fresh amendments to restrict the government from appointing heads of four nationalised banks for two terms only.

The Additional Auditor General told the Senate committee that the interim report on the audit of pension system, which was currently under preparation, showed an initial findings that internal weaknesses existed in the payment of the pension system. “We will finalise our audit report by end April 2016,” he added. However, the NBP high-ups argued that there was no ghost pensioner in their system.

On Banks (Nationalisation) Amendment Bill 2016, the committee was told that the governments were used to extend the tenure of bankers several times. The government had approved legislation through Finance Bill 2011, which was struck down by the Supreme Court of Pakistan by declaring it as ultra vires. So the government had now decided to get approval of this amendment through parliament. The National Assembly had already approved an amendment to this bill.

The Senate had referred this bill to its finance committee and it approved the bill with the amendment after which the government would have to get the approval of the National Assembly again.

The approval of the bill with amendment would bind the government to re-submit it before the National Assembly as the government told senators that there was no hurry for making appointments in any of the four nationalised banks including the National Bank of Pakistan, SME Bank, ZTBL and First Women Bank.

The Senate Standing Committee on Finance and Revenues held its meeting under the chairmanship of Senator Saleem Mandviwalla here at the Parliament House on Friday afternoon and approved to amend offences in respect of Banks (Special Courts) bill 2016 and repeal of the Equity Participation Fund Bill 2016.

The committee also directed the Finance Ministry to devise a strategy to ensure fast track implementation on converting manual payment system to Direct Credit System (DCS) for making payment to 2.6 million pensioners as without placing this new system, ghost pensioners would continue to get money at the cost of national exchequer.

The AGPR revealed that during August-March (2015-16), 0.537 million pensioners were transferred to the Direct Credit System (CDS). The committee was also briefed on the ghost pensioners’ issue. It was told that 0.537 million pensioners were listed on the DCS. The finance minister had directed to transfer Grade 17-22 officers to the DCS by March 31, 2016 which was now extended up to June 30, 2016.

Under the DCS, the government had so far transferred 53,7193 pensioners. However, after getting instructions from Finance Minister Ishaq Dar, the Controller General’s Office had registered only 40 to 50 thousand pensioners on the DCS system. “We can only register 40 to 50 pensioners on the DCS on daily basis,” they added.

The parliamentarians estimated that the AGPR and CGA office required at least two-and-a-half year period to convert all the 2.6 million pensioners on the DCS system and until then the ghost pensioners’ fiasco would continue unabated.

The committee directed the Finance Ministry for holding a meeting among NBP, AGPR and CGA to find ways and means for completing the conversion of pension payment on DCS on a fast track basis.The committee also warned the finance ministry that they would pass the Corporate Rehabilitation Bill 2015, if it was not presented till its last deadline of April 30, 2016.