Audit plays vital role in good governance: Dar

Praises performance of AGP; pensioners to
get payment through computerised system

ISLAMABAD: While appreciating overall performance of Auditor General of Pakistan (AGP) including increasing recoveries by 100 percent because of efficient audit, Finance Minister Ishaq Dar on Thursday directed the authorities to convert payment of pension from traditional mode to computerised system in prompt manner.

Finance minister chaired a meeting on Thursday to discuss various reforms being undertaken to enhance the quality of audit and capacity of the audit department. He stated that audit is an important function for good governance as it plays a major role in enhancing transparency and ensuring accountability. He said that effective audit strengthens government efforts to eradicate financial irregularities and financial misappropriation.

The finance minister appreciated overall performance of the Auditor General’s Department and its agenda on systemic reforms, restoration of soft image of the department. The 100% increase in recoveries effected by audit, from Rs40 billion in 2014-15 to Rs81 billion in 2015-16 were specifically appreciated.

Auditor-General of Pakistan, Rana Assad Amin, apprised the finance minister of the performance of the department and the various initiatives that have been taken in recent years to enhance the output as well as effectiveness of the audit function.

The auditor general also apprised the finance minister about pension reforms, which were initiated on his directions in October 2015. He updated that out of a total of 26,00,000 pensioners, more than 7,00,000 cases have been converted to Direct Credit System (DCS) to facilitate smooth payments to pensioners. Pensioner’s form is now simplified from the conventional format of 9 pages to 3 pages.

Finance minister appreciated the progress of computerised mode of payment and processing of all new cases through DCS. He directed that rest of the pensioners drawing pension through the conventional mode may be converted to DCS in a prompt manner.

The meeting was informed that following finance minister's directions to facilitate the pensioners, especially widows, all ministries/divisions have appointed pensioner welfare officers as focal persons. Finance minister further directed that pensioner welfare officers may be provided training by AGPR offices and that the banks may further improve pensioner’s facilitation by making proper seating arrangements as well as dedicated timeframe for attending the pensioners.

The auditor general elaborated that output of the department included 596 audit reports including 101 financial attests, 151 special audits, 133 foreign aided audits and 211 regularity audit reports.

During 2015-16, 11,000 formations were audited involving an audited amount of Rs9, 477 billion. He highlighted that the reforms, based on the department’s first ever strategic plan included improving financial and organisational independence, capacity building, development of communication and cooperation with stakeholders, use of modern audit techniques and technologies and improving internal governance. Operational reforms also include a paradigm shift involving re-introduction of risk-based auditing, focused on systemic issues.

Finance minister was also briefed on the salient points of the legislation for Auditor General’s Act, leading to greater financial and operational independence of the department. Additional Auditor-General and Accountant General of Pakistan Revenues and as well as other officials the Auditor General Department and Finance Division attended the meeting.