PAC sub-committee grills finance ministry over audit irregularities, warns of action if issues remain unresolved

A meeting of the Public Accounts Sub-Committee of Parliament, chaired by Syed Naveed Qamar, turned heated Tuesday as serious audit objections were raised against the Ministry of Finance and the Federal Treasury Office (FTO).

Audit officials highlighted a glaring discrepancy of Rs122 billion in receipts and payments at the FTO, stating that receipts from banks were being collected daily but mismatches were found in several instances where payments exceeded purchases. However, Secretary Finance later clarified that the disputed amount was Rs122 million, not Rs122 billion.

Convener Syed Naveed Qamar expressed dismay that the issue was first detected seven years ago, yet even after four more years, no progress had been made. “Why has this issue not been resolved in the last four years? How much more time do you need? I do not like pending audit paragraphs,” he remarked sharply. In response, FTO officials assured the committee that the matter would be resolved before the next meeting, though they admitted they had only become aware of the audit paragraph three days earlier.

“If the Finance Ministry itself is in this condition, then God bless it,” Qamar retorted, warning that if the issue remains unsettled by the next session, the committee will fix responsibility.

The session also exposed violations of austerity measures by the Ministry of Finance itself. According to the audit brief, the ministry incurred unauthorised expenditures of Rs17.9 million and overspent significantly in multiple categories: 29 percent more on travel allowance, 36 percent more on stationery, 134 percent more on entertainment, and 87 percent more on utilities.

“The very institution that preaches austerity to others is itself violating those principles,” Naveed Qamar observed, stressing that the Finance Ministry should set an example for other departments.

When the Secretary Finance requested that the audit paragraph be disposed of, the convener refused, stating: “We will only resolve this issue when the same facilities are provided to other departments as well. Those who take these privileges must also extend them to others.” He added that the ministry had no legal authority to incur additional expenditures without approval.

The PAC sub-committee referred the matter back to the Departmental Accounts Committee (DAC), with Qamar reminding the ministry that it must act as both “jury and judge” and hold itself accountable before demanding austerity from others.