ISLAMABAD, Jan 12: The Public Accounts Committee of the National Assembly has constituted a sub-committee under the convener ship of Kunwar Khalid Younis MNA to look into different audit paras pertaining to increase in the pay and allowances by the National Highway Authority without concurrence of the Finance Division having a financial impact of Rs126.720 million.

The sub-committee has been mandated to involve the ministries of finance, law and justice, Establishment Division and Auditor General's office to sort out the issue and report back to the committee within one month, says a press release.

The committee met under the chairmanship of Malik Allah Yar Khan in the parliament house on Wednesday to examine the accounts of the Ministry of Communications for the year 2000-2001.

Discussing audit objections, the committee observed that the NHA had overstepped its authority and without concurrence of the Finance Division it unilaterally raised pay and allowances admissible to their officers and staff.

The committee also observed that all government departments were subservient to the regulations of the government and should not take undue advantage of the autonomy granted to them.

It also gave a general direction to all the ministries to follow financial discipline in letter and spirit and not to take decisions which are in conflict with the acts of the parliament.

The committee constituted an inter-departmental committee under Ch Qamaruz Zaman Kaira MNA to look into the excess payment of Rs23.855 million made to two contractors in violation of the general financial rules.

It was brought into the notice of the PAC that the rates of different items were revised by the authority after execution of the contracts for the construction of the 4th highway project. However, it failed to revise the rate of the foreign exchange involved.

Later, while making final payment to the contractors, foreign exchange was paid to them at the prevalent market rate. The committee observed that had NHA prudently taken that into account and revised the rates at that time, the government exchequer might have not been burdened. Malik Allah Yar Khan termed it negligence on the part of the NHA and directed it to be cautious in future.