LAHORE, March 4: The federal government failure to amend the Controller General of Accounts (CGA) Ordinance 2001 as recommended by the National Reconstruction Bureau (NRB) several months back is delaying the transfer of provinces’ administrative control over district accounts officers (DAOs) working under their respective finance departments to the accountants general.

The CGA ordinance, as it exists today, brings the provincial and district accounts and all DAOs under the administrative control of the accountants general (AGs) who work as an extension of the CGA in the provinces.

However, the provinces objected to this provision of the ordinance because it establishes a federal control over their accounts, officers and physical resource, terming it a breach of provincial autonomy. The provinces also refused to transfer the DAOs and the physical infrastructure (the district accounts offices, furniture and other assets) to the provincial AGs till a final decision was taken to resolve the issue.

Taking the provincial objections into account, the NRB has proposed certain changes in the CGA law which were approved by the federal cabinet in its meeting on Nov 6 last year. The changes suggested by the NRB provide that the provincial governments would exclusively maintain provincial and district government accounts from July 1, 2006.

During the intervening period, however, the federal government was requested to maintain the provincial and district government accounts (through CGA and AGs) till complete provincialization of the accounts on behalf of the provinces under article 147 of the Constitution.

It was decided that the administrative control of all DAOs working under the provincial finance departments as well as physical assets would be transferred to the accountants general for the interim period. But it has so far not been done by the provinces because, officials say, it was “legally” impossible unless the proposed changes were made part of the CGA ordinance by amending it.

“Unless the law is amended to reflect the changes proposed by the NRB to provincialize the accounts, nothing can be done to transfer the administrative control over our accounts officers or physical assets to the accountant general,” a senior finance department official told Dawn on Tuesday.

On the other hand, sources in the Punjab AG Office say, the delay in the transfer of administrative control over the DAOs was creating a good deal of problems for the government employees and had been a major cause of frauds. At present, out of 49 DAOs in Punjab only 19, posted from among the AG’s staff, are under the administrative control of the AG. The remaining 30, several of whom are in BPS-16, are under the control of the finance department.

“We cannot transfer any of these 30 DAOs even if he is found guilty of gross financial lapse or creating problems for the people,” the sources said. Besides, they claimed, a majority of them are not competent to exercise the powers to sign and release the bills and cheques because they are just “officiating” on a senior post.

They also insist that the CGA law, as it exists today, provided that the AG should exercise full administrative control over the DAOs for an improved maintenance of the provincial and district accounts.