ISLAMABAD, July 1: In what appeared to be a move to assert its authority, the Public Accounts Committee formally held three retired military generals responsible on Friday for causing a loss of Rs1.82 billion to the pubic exchequer after the GHQ failed to provide its report on a scam in the National Logistic Cell.

The PAC had asked the Ministry of Defence to direct the GHQ to share the findings of its inquiry into the matter by June 30.

In its final decision, the committee held the three retired generals guilty of “lapse of discipline, lack of transparency and blatant violation of government rules and regulation during their tenure”.

NLC officers Lt Gen (retd) Khalid Munir Khan, Lt Gen (retd) Mohammad Afzal Muzaffar and Maj Gen (retd) Khalid Zaheer Akhtar have been held responsible in the Hamid Hassan report and the AGP’s audit report for corruption to the tune of billions of rupees in the NLC because of illegal and unauthorised loans of Rs4.3 billion taken by its management between 2004 and 2008 for investment in the stock exchanges that caused losses of Rs1.84 billion.

The PAC ruled that the investments were in violation of the finance division’s instructions and the NLC’s investment policy.

The NLC is a subsidiary of the Planning Commission but has traditionally been dominated by army officers.

PAC Chairman Chaudhry Nisar Ali Khan told Dawn that it had been made clear to the Planning Commission and the defence ministry that any inquiry report by the GHQ should be submitted by June 30 and the PAC would not delay its decision.

The PAC’s decision said the findings and recommendations of the Hamid Hassan report had been accepted.

The PAC directed the Planning and Development Division’s secretary to make a reference to the defence secretary to immediately initiate disciplinary action against the three retired army officers in accordance with rules.

The PAC has forwarded a similar instruction to the Cabinet Division’s secretary and the CDA for initiating disciplinary action against Saeed-ur-Rehman, the former chief financial officer of NLC.

The planning secretary has been directed to refer the case, including the reports, to the NAB chairman for carrying out a detailed investigation to determine liability, if any, under the NAB Ordinance.

The PAC has also directed the planning secretary to restructure the NLC and review its business plan on a priority basis.

Meanwhile, the PAC has written a letter to the Supreme Court, directing its registrar to appear before the committee and get the apex court budget audited by the Auditor General.

The Supreme Court is yet to respond to the letter.

During the last fiscal year, the PAC made a record recovery of Rs70 billion from various government departments and public sector corporations.