ISLAMABAD: The Public Accounts Committee (PAC) of the National Assembly has restored operational and financial independence of the Indus River System Authority (Irsa), suspended a couple of months ago after objections raised by the Auditor General of Pakistan.

The water regulator representing the centre and the four provinces has, however, been advised by the PAC to get its administrative issues settled in the shortest possible time in consultation with the establishment division to address reservations expres­sed by the audit department.

A sub-committee constituted by the PAC under the chairmanship of PPP parliamentarian Syed Naveed Qamar had suspended special and housing allowances after examining audit paras about Irsa for the fiscal year 2003-04. The allowances granted in 2003-04 on the directive of then chief executive Gen Pervez Musharraf were found irregular by the AGP.

Take a look: Irsa warns of water crisis, seeks PSDP freeze

While moving the Irsa headquarters from Lahore to Islamabad in 2002 to address Sindh’s concern over new water reservoirs, the then government had promised additional allowances and out-of-turn housing facility in Islamabad to the Irsa staff. But after the shifting of the headquarters to Islamabad, the Ministry of Housing declined to provide housing facility and said Irsa was not in the housing list of the federal government because it was established under an act of parliament like corporations and other regulators.

Meanwhile, the water and power ministry said Irsa officials were not entitled to pension from the Federal Consolidated Fund because they fell under the definition of public servants, and not civil servants under the law.

Therefore, the ministry advised Irsa to frame its own rules under section 12(2) of the Irsa Act 1992 to provide for housing and special allowances like the secretariat allowance being paid to federal government employees to compensate increase in the cost of living arising out of its shifting from Lahore to Islamabad. The ministry promised to get these facilities approved from the establishment division.

Subsequently, Irsa framed its own rules providing for allowance on the pattern of secretariat allowance at 20 per cent of basic salary and housing allowance at the government rate applicable to other officials. The ministry approved the allowances and issued a no-objection certificate (NOC).

The AGP had objected to Irsa’s 2003-04 accounts on the grounds that since the latter’s officials were not civil servants, the water and power ministry’s NOC could not provide legal cover to Irsa’s perks. Therefore, at the request of the water and power ministry, the establishment division also allowed these allowances and issued a fresh NOC.

The office of the AGP agitated its views before the PAC which suspended the allowances and constituted a sub-committee to resolve the matter. The sub-committee held a special briefing on a review petition filed by Irsa Secretary Jahanzeb Ghore­zai and was convinced that the regulator had a strong case for the allowances that were in line with other government departments as also supported by the establishment division and the power ministry.

The PAC, therefore, lifted the ban on payment of allowances to about 100 Irsa officials, but directed the water and power ministry, Irsa and the establishment division to hold a separate session with the AGP to regularise payments.

It was pointed out that Irsa was not getting any grant or allocation from the federal government for salaries and allowances. It was drawing its financial strength from water use cess from the provincial governments and hydropower cess from Wapda and nuclear power plants under a consensus decision of the Council of Common Interests (CCI) to ensure its independence in operational and financial matters.

Irsa is getting about Rs220 million every year by charging the provinces water cess at a rate of 30 paisa per acre feet of water and Wapda’s power plants and Chashma Nuclear Power Plant power cess at half a paisa per unit of electricity.

Published in Dawn, April 6th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play