ISLAMABAD: The Public Accounts Committee on Thursday directed the Higher Education Commission (HEC) to settle the Rs50 billion-plus financial irregularities in its departmental accounts committees (DACs).

The direction came after the Auditor General of Pakistan (AGP) office pointed out unauthorised transfer of Rs28.68 billion development funds to commercial bank accounts of the universities. The AGP office was of the view that transfer of development grants to universities’ commercial bank accounts was in violation of instructions of the Finance Division and Article 80 of the Constitution. The auditors asked why funds from assignment accounts maintained for development projects were transferred to commercial bank accounts. The funds were lapsable after one year.

The matter came up when the PAC started discussing an audit report about Higher Education Commission’s infrastructure development projects of the federally-chartered universities.

PAC Chairman MNA Noor Alam Khan initially wanted an inquiry into the matter but was convinced by other members to direct the HEC to settle the matter through DACs.

Auditors find unauthorised transfer of funds to commercial bank accounts of universities

Similarly, the audit maintained that the utilisation of unspent balance of Rs19.89 billion from the assignment accounts was also irregular and against the spirit of the assignment accounts procedures.

Other irregularities highlighted during the meeting pertained to irregular construction of buildings without mutation of land/NOC/building plans worth Rs2.9 billion, failure to surrender Public Sector Development Programme (PSDP) funds of Rs1.69 billion, loss of Rs76.99 million due to award of work at higher rates, excess payments of Rs196.24 million without approval, award of work worth Rs182.550 million without open tendering in violation of Public Procurement Rules and irregular payment of remuneration to visiting faculty worth Rs100.84 million.

Besides, there were also irregular payment of medical allowances over and above the prescribed rates and non-production of record of endowment fund and other income.

The PAC chairman cautioned HEC Executive Director Shaista Sohail to use discretion while utilising funds that were meant for students whom he described as the future of the country.

In her response to the audit objection about unauthorised transfer of Rs28.68 billion development funds to commercial bank accounts, Ms Sohail informed the committee that her office faced numerous difficulties in opening assignment accounts.

“The decision to transfer funds was taken after an approval was sought from Finance Division,” she said.

However, the AGP officials objected that there were no provisions in law that empowered the Finance Division to give the go ahead for such transactions. The AGP had recommended recovery of unused funds along with interest.

After the meeting, the PAC chairman told media that he wanted to order inquiries into the alleged irregularities but was lenient and wanted to wait for the matter to be settled in DACs.

Published in Dawn, April 14th, 2023