ISLAMABAD: The National Accountability Bureau (NAB) on Thursday informed the Public Accounts Committee (PAC) of the National Assembly that a reference would be filed against bankers as well as officials of the Privatisation Commission (PC) for irregular investments.

The PAC was examining the PC’s audit report for 2012-13. The audit report pointed out “undue favour and irregular investments in different financial institutions” of Rs5.7 billion.

The auditors said that under Section 16(1) of the Privatisation Commission Ordinance, 2000, the “Commission shall establish and maintain a distinct and separate Privatisation Fund in which all privatisation proceeds shall be deposited”.

The report, however, said that “the management of the Privatisation Com­mission invested Rs5.7bn during 2007-2012 in different financial institutions”.

The auditors observed that “the investments were made without the guarantee of the government…the approval of finance division was not obtained…a number of members of the Privatisation Commission board were affiliated with the banks where funds were invested”.

PAC has been informed that Privatisation Commission invested Rs5.7bn during 2007-12

The report pointed out that Syed Asghar Ali was the director of KASB Bank, Kurshid Zafar was the senior executive vice president of Arif Habib Bank and Asif Kama, chairman of Trust Investment Bank Limited, was also a member of the Privatisation Commission.

“Audit is of the view that the investments were irregular, unauthorised and in violation of the government instructions, as well as the Privatisation Commission Ordinance, 2000. The possibility of extending undue favour to these banks also cannot be ruled out.”

The PC management replied that the funds remained at their disposal for an interim period and the profit has been reflected in the annual audited accounts.

The audit officials said that the PC management’s reply was not acceptable because the investments were a violation of government instructions.

PAC chairman Rana Tanveer Hussain asked NAB why the matter had lingered on for over six years. The director operations of NAB said the inquiry had been completed and the investigation is was progress.

Mr Hussain expressed displeasure and said that had there been a politician, the inquiry would have been concluded in weeks.

The NAB representative told the committee that politician and former senator Waqar Ahmed Khan was also involved in this scam.

During the committee’s meeting, the PAC chairman stopped Noor Alam Khan from interacting with the ministry’s official without seeking his prior approval.

Mr Khan said he was from the Pakistan Tehreek-i-Insaf (PTI), not from the Pakistan Muslim League-Nawaz (PML-N) and, therefore, Mr Hussain could not dictate to him.

“You have to follow the rules,” the PAC chairman said, adding that the rules never permit a PAC member to ask any question from the principal staff officer of a ministry without the permission of the chair.

He then passed the ruling that “no member should speak without taking approval from the chairman”.

When Mr Hussain took up an audit report related to appropriation of Privatisation Commission accounts, Mr Khan objected and said that the PTI had agreed to give the PAC chairmanship to the opposition on the condition that the audit paras related to the PML-N regime must not be placed before the main committee headed by the member of the opposition party.

Mr Hussain offered that the audit paras may be placed before any other committee but on the insistence of other PAC members, he examined the report and settled the appropriation of accounts report for the period when Miftah Ismail was minister for privatisation.

Published in Dawn, January 31st, 2020