ISLAMABAD: Terming the release of Rs480 billion to the power sector to clear circular debt as ‘irregular’, the Auditor General of Pakistan (AGP) left the matter at Public Accounts Committee’s (PAC) discretion.

In its special audit report on ‘Clearance of circular debt of power sector’, AGP Rana Asad Amin pointed out that there were precedents in which the PAC had settled such audit objections.

Soon after coming to power, the PML-N government in July 2013 asked the State Bank of Pakistan to issue Rs480bn on account of settlement of circular debt to the power sector.

The sacked auditor general Akhtar Buland Rana reportedly said that he was removed from his post for raising voice against the issuance of the said release.

The PAC on different occasions too had discussed the matter.

In a recent meeting on December 15, the PAC asked AGP Amin to submit the audit report. However, he said the report was forwarded to President Mamnoon Hussain and after his approval would be laid before the National Assembly.

The said audit report was presented before the National Assembly on Friday.

The report found that a major chunk of Rs341bn released to PEPCO was “an irregular payment”.

According to the report, as per Controller General of Accounts Ordinance, such payments may be released after pre-audit by the Accountant General of Pakistan (AGPR). However, the finance division released this amount without conducting the pre-audit.

The report however said the matter was reported to the Ministry of Finance in August 2015. The management replied that the payment was made in extreme emergency. The departmental accounts committee (DAC) in its meeting held on November 15 contended that audit paras of similar nature had already been settled by the PAC.

The audit report examined the releases of other amounts to power companies and in most of the cases, it recommended legalisation of the released amount by adhering to certain procedure.

It may be mentioned that AGP Rana in his report had said that the government had released Rs480bn in an illegal and unlawful manner.

Shafqat Mehmood, a PAC member has asked PAC Chairman Syed Khursheed Ahmed Shah to summon AGP Rana’s audit report.

The PAC in its forthcoming meeting is likely to take up both the audit reports as the incumbent auditor general Asad Amin was of the view that the previous report by AGP Rana was one-sided.

Amin maintained that the report, he prepared after assuming charge, has heard the stance of all relevant stakeholders.

Published in Dawn, December 19th, 2015

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