CASE STUDY WRITING

“Audit Reports for the Year 2005-2006 and 2010-2011 Pertaining to the
Ministry of Federal Education and Professional Training and Ministry of
Interior (CDA): A Struggle for the Pursuit of Justice”

119TH NATIONAL MANAGEMENT COURSE

NATIONAL MANAGEMENT COLLEGE, LAHORE
by

IFTIKHAR Ahmed,
(ExC. National Assembly)

A case study submitted to the faculty of the National Management College, Lahore in
partial fulfillment of the requirements of the 119th National Management Course.

The case study is the end product of my own efforts, research and writing and has not, in
whole or in part, been submitted elsewhere for assessment and its contents are not plagiarized.
The paper reflects my own views and is not necessarily endorsed by the faculty or the College.

Signature____________________
Date: _______________________
SPONSOR DS: DR. N.A. CHAUDHARY
List of abbreviations
1. AGP Auditor General of Pakistan

2. CDA Capital Development Authority

3. DAC Departmental Audit Committee

4. FE & PT Federal Education and Professional Training

5. LEA Law Enforcement Agency

6. NAB National Accountability Bureau

7. NAS National Assembly Secretariat

8. NCHD National Commission for Human Development

9. PAC Public Accounts Committee

10. PAO Principal Accounting Offcer

 TABLE OF CONTENTS
Contents
Introduction:..............................................................................................................................................4
Statement of Intent:...................................................................................................................................4
Scene Setting:.............................................................................................................................................5
SECTION-1................................................................................................................................................6
Audit Pars relating to the NCHD.............................................................................................................6
1.1 Background of Recruitment:....................................................................................................6
1.2 First round, discussion of the matter with Chairman PAC:...................................................6
1.3 Second round, efforts of Mr. Ahmed continues:......................................................................6
1.4 Third round, constitution of sub-committee:...........................................................................6
1.5 Fourth round, immediate relief:...............................................................................................7
1.6 Final round, complete justice:...................................................................................................7
1.7 Appreciation from the senior officers:.....................................................................................8
Section 2.....................................................................................................................................................8
Audit Paras relating to CDA.....................................................................................................................8
2.1 First Attempt-Inquiring into the Issue:....................................................................................8
2.2 Second Attempt-Consultative Measures:.................................................................................9
2.3 Third Attempt-Consideration by PAC:...................................................................................9
2.4 Fourth Attempt-settlement of Para:.......................................................................................10
Section-3...................................................................................................................................................10
PURSUIT OF JUSTICE AND CHALLENGES....................................................................................10
3.1 Identification of Actual Issues:...............................................................................................10
3.2 Justice in NCHD Recruitment Case:......................................................................................10
3.3 Audit Paras Related to CDA:..................................................................................................10
3.4 Huge workload:........................................................................................................................11
3.5 Court Cases:.............................................................................................................................11
3.6 Inquiries in the LEAs:.............................................................................................................11
3.7 Monthly DAC Meetings and Resistance to Pressure:...........................................................11
3.8 Role of the PAC workforce:....................................................................................................12
3.9 Week Implementation Mechanism:........................................................................................12
WAY FORWARD.....................................................................................................................................12
Conclusion:..............................................................................................................................................12
Lessons Learnt:........................................................................................................................................14
Recommendations:..................................................................................................................................17
(a) Short Term Recommendations:..............................................................................................17
(b) Medium Term Recommendations:.........................................................................................18
(c) Long Term Recommendations:..............................................................................................19
Annexures & Attachments......................................................................................................................21
Annexure-1: Extract from the RP & CN in NA in NA, 2007................................................................22
Annexure-2: Performance of PAC..........................................................................................................24
Annexure-3: Actionable Points of PAC..................................................................................................25
Annexure-4: Notice of PAC.....................................................................................................................26
SOURCES:...............................................................................................................................................27
Images of meetings of the PAC...............................................................................................................29
Introduction:

The Public Accounts Committee (PAC) is a committee of the National Assembly

comprising 29 members of Parliament. The Committee examines accounts showing
appropriation of sums granted by the Assembly for expenditure of the Government; the Annual
Finance Accounts of the Government, the report of the Auditor-General of Pakistan (AGP); and
such other matters referred by the Finance Minister.

Aim of this case study is to re-examine audit paras for the years 2005-2006 and 2010-
2011. First issue relates to Para No. 5 of Special Audit Report submitted by AGP to the
Assembly for the year 2005-2006 regarding irregular expenditure amounting to Rs. 35.023
million on payment of salaries of 37 deputationists in the National Commission for Human
Development (NCHD). Whereas, second issue relates to unauthorized/irregular expenditure of
the Capital Development Authority (CDA) amounting to Rs. 2038.47 million. Ahmed played his
effective role to highlight these issues before the PAC. In performance of his duties, Ahmed
faced extreme hardship due to structural problems and pressure from concerned department and
authorities. Regardless of the problems, Ahmed continued without fear and favour for pursuit of
justice.

Statement of Intent:

This case study aims to thoroughly investigate role and impact of the PAC by ensuring
transparency, focusing accountability and maintaining financial oversight by the Parliament. The
duty of the PAC is a sacred trust and command of the Constitution to achieve the purpose of
financial integrity and promoting good governance through Parliamentary intervention. This
study aims at highlighting the procedure of the PAC in timely examining audit paras and
continuity of its proceedings in the best interest of the nation and the country. Ahmed intends to
pursue the importance of PAC in financial control by examination of audit paras of various audit
reports pended before the PAC and making recommendations for rectifying financial
irregularities. Ahmed also intends to provide a comprehensive understanding of working of the
PAC; performance of the AGP; effectiveness of Law Enforcement Agencies (LEAs); and
dutifulness of the Principal Accounting Officers (PAOs).
Scene Setting:

It was the 6th October, 2021, Mr. Ahmed was engaged in official business at 2.00 pm
related to the office of the Joint Secretary (Parliamentary Committees & PAC) .Few officers of
the Ministries/Divisions/Departments including NCHD entered in his office and discussed the
matter pertaining to deduction of deputation allowances from their monthly salaries and
requested for placement of their matter before the PAC for re-exmination and re-consideration
and for making recommendations as per functions of the PAC. They highlighted that the audit
para which was established by the audit department was framed in violation of the prescribed
procedure resultantly 37 government officers were being affected therefrom. For resolving the
issue and extending justice to the officers, the matter was placed before the sub-committee of the
PAC on Monitoring and Implementation which was headed by the former Speaker / Convener of
the Committee for further directions/decisions. The Committee directed the PAO of the Ministry
of FE & PT to place the matter in the meeting of the DAC and come-up with appropriate
proposals for resolving the issue but the matter remained unresolved due to change of regime.
During new era, the same officers again approached Mr. Ahmed for placement of the matter
before the Committee but at that time sub-committee of the PAC on Monitoring and
Implementation was not in existence. Thus, Mr. Ahmed persuaded the Chairman, PAC for
constituting new sub-committee to which he agreed and the matter of the affected officers was
once again placed before the Committee. Finally, the Committee settled the para pertaining to the
affected officers of Ministry of FE & PT. Regarding the matter of the CDA, Mr. Ahmed was
directed by the senior officers of the National Assembly Secretariat (NAS) to see the para
relating to CDA for reexamination as soon as possible. However, the PAC’s sub-committee was
not functional. Mr. Ahmed succeeded in placement of matter before the main PAC after very
hectic efforts because of the fact that the matter was 12 years old. The Committee also settled the
paras on the recommendation of DAC. Moreover, a number of measures were adopted for
resolving the matters. During the pursuit of justice and fair play, Mr. Ahmed faced lots of
pressure from the office as well as concerned persons/parties but finally remained successful for
giving justice to the affected persons.
 SECTION-1
Audit Pars relating to the NCHD

Mr. Ahmed took up a case to address challenges related to the borrowing of services of
employees working in the National Commission for Human Development (NCHD).

1.1 Background of Recruitment:

Mr. Ahmed found that NCHD hired 37 government employees on deputation basis.
However, due to Special Audit Report of the AGP, the deputation officers were subjected to
recovery of allowances from their salaries without lawful justification.

1.2 First round, discussion of the matter with Chairman PAC:

Mr. Ahmed briefed that the Chairman PAC about the issue of NCHD as highlighted by
the officers during meeting with Mr. Ahmed. He briefed the Chairman, PAC and proposed for
constitution of a sub-committee of the PAC on Monitoring and Implementation but, the
Chairman was not willing to do so. He was of the view that it is a 16 years old issue and not
possible for the current PAC since the PAC was engaged in examination of the Audit Reports for
the year 2021-2022.

1.3 Second round, efforts of Mr. Ahmed continues:

During the second round, Mr. Ahmed kept on briefing the Chairman, PAC regarding the
issue several times and tried his best to convince the Chairman to take up the matter for
constitution of the sub-committee by the PAC. Ultimately, Mr. Ahmed succeeded to convince
the Chairman for placing the issue before the PAC. The Committee took up the matter in its
forthcoming meeting under the agenda item “any other itemr with permission of the Chair”.
Upon assistance of Mr. Ahmed, the Chairman, PAC briefed the members of PAC. A consensus
was developed amongst the committee members and at the end of the discussion, a sub-
committee of the PAC on Monitoring and Implementation was constituted.

1.4 Third round, constitution of sub-committee:

 At the third round of his efforts, Mr. Ahmed convinced the Convener of the sub-
committee of the PAC on Monitoring and Implementation to convene a meeting to discuss the
matter of NCHD. On the date of meeting held on 1th July, 2023, the issue of completion of
quorum came across under rule 220 of the Rules of procedure and Conduct of Business in the
National Assembly, 2007. Mr. Ahmed and his team contacted members of the sub-committee
and after numerous affords, the quorum got completed. After commencement of the meeting,
Mr. Ahmed briefed the convener of the sub-committee and responded to the questions of all
members and satisfied them for the grave injustice with employees of the NCHD. The
Committee examined the issue in depth and conducted several meetings. Mr. Ahmed arranged a
hearing of the affected officers before the Committee and got their issues highlighted with verbal
arguments and through documentary evidence in the light of clause 12 of the National
Commission on Humar Development Ordinance, 2002.

1.5 Fourth round, immediate relief:

Since, it was a very complex issue involving legal, administrative, financial as well as
service related complexities, therefore, to alleviate difficulties and miseries of the affected
employees, Mr. Ahmed convinced the sub-committee to suspend the process of recovery of
allowances till final decision to which the Committee agreed. However, the committee continued
working on the issue. In the meanwhile, the matter was also referred by the sub committee to the
DAC.

1.6 Final round, complete justice:

Upon receipt of the report of DAC, Mr. Ahmed examined the case once again. He
required further documents necessary to the case from the department. He also called all relevant
officers along with original documents / record pertaining to the case and arranged three
consultative meetings in his office. During this process Mr. Ahmed mobilized his team and made
a comprehensive briefing for the convener. During the final meeting of the committee, Mr.
Ahmed placed the case before the committee and afforded another opportunity to all affected
employees as well as other stake holders from their respective departments. After a detailed
consideration and examination of the case, all committee members decided the matter
unanimously in favour of the affected employees and none of the stake holder objected to the
decision of the sub committee. Such decision with complete agreement between all members of
the committee and all stake holders was achieved due to the efforts of Mr. Ahmed. In the past,
numerous decisions of the PAC have been challenged before the courts entailing huge financial
costs upon the National Assembly Secretariat as cost of litigation, but this decision was made
after in depth deliberation and with harmony amongst all relevant parties; therefore, it has been
implemented. None of the party has agitated against the decision of the sub- committee. Having
listened to the view points of both the PAO and Audit, the committee assessed that the
deputationists were not at fault, The committee. However, settled the para and directed the PAO
to share the required information / record with the Audit. The para was settled and the sub
committee directed

1.7 Appreciation from the senior officers:

In recognition of his merit-based initiative; fairs and just proceedings; efficient assistance
to the Committee; getting all stake holders on board for broader consultations for settlement of
the issue; building a skilled team under his domain and resolution of the matter amicably; and in
the interest of the affected employees the senior officers of the National Assembly Secretariat
expressed their appreciation to Mr. Ahmed and his team. He has set an example for rest of the
committees of the Parliament for their functioning for the cause of good governance and
parliamentary oversight.

Section 2
Audit Paras relating to CDA

Since, Mr. Ahmed is a well versed with applicable provisions from the Constitution and
the Rules of procedure and Conduct of Business in the National Assembly, 2007; therefore, he
has assisted the PAC in discharge of its functions accurately. During performance of his duties,
Mr. Ahmed, was assigned the task to re-examine a case of CDA wherein certain irregularities
were required to be investigated.

2.1 First Attempt-Inquiring into the Issue:

 Upon receipt of the assignment from the competent authority in the office of Mr. Ahmed,
he perused the Audit Report for the year 2010-11 regarding construction of underpass and
flyover at the intersection of Faisal Avenue and Jinnah Avenue, Islamabad by the CDA. After
perusal of the Report by Mr. Ahmed, it revealed that a competitive bidding process was took
place on 22nd January, 2007. M/S Martracon XB (Xinjiang Beixin) JV won the bid at Rs.
815.283 million. However, some discrepancies were unearthed on account of design of the Fly-
over Bridge after the bid on the ground of non-availability of shuttering equipment with the
contractor. Mr. Ahmed further observed that original pile work, designed to bear the load of
heavy superstructure/Box Girds was not suitable with the altered design. Mr. Ahmed further
found that the change in the design of the Fly-over took place after the award of work and it
resulted into five Variation Orders amounting to Rs. 375.380 million over and above the
approved estimate. Mr. Ahmed prepared a comprehensive briefing for Chairman of the PAC
after detailed consideration of the issue.

2.2 Second Attempt-Consultative Measures:

After completion of initial working, Mr. Ahmed requested the Chairman, PAC a meeting
and apprized him about the issue in detail. The Chairman sought another briefing from Mr.
Ahmed on certain queries posed in the first meeting. Consequently, Mr. Ahmed required reports
from the CDA in detail incorporating every aspect relating to the case including laxity in project
planning and noted violations of PPRA Rules, 2004 and reasons for cost escalation. Upon receipt
of all details and verbal discussions with concerned officers of the CDA, another comprehensive
briefing was prepared by Mr. Ahmed. He placed all details before the Chairman, PAC once again
and solicited permission for including the issue in the agenda of the next meeting of the PAC.

2.3 Third Attempt-Consideration by PAC:

Upon approval by the Chairman, PAC, the issue was included in the agenda for meeting
held on 8th August, 2023. The Committee discussed the case, examined facts and found
irregularities. The Committee directed the Principal Accounting Officer (PAO) to conduct a
personal inquiry into the matter, recover losses, proceed under the Civil Servants (Efficiency and
Discipline) Rules against the responsible officers of the CDA for causing losses to the national
exchequer. The PAC issued directive addressing post-bid deviations/changes and amendments in
design. The Committee decided to pend this para for four weeks till receipt of the report from
CDA.

2.4 Fourth Attempt-settlement of Para:

On the issue relating to the CDA, 27 meetings of the DAC and 21 meetings of the PAC
were held. Finally, all 5 paras were settled on the recommendation of the DAC.

Section-3
PURSUIT OF JUSTICE AND CHALLENGES

In the pursuit of justice, Mr. Ahmed mobilized his team, launched coordinated efforts and
tried his level best to persuade the Chairman, PAC for constitution of sub-committees of the
PAC and placement of the issues of NCHD and CDA before the Committee for deliberation and
decision.

3.1 Identification of Actual Issues:

Mr. Ahmed tried to manage his time and human resources to identify the actual issues
involved in both cases of NCHD and CDA despite having a workload of around 40,000 pending
audit paras, delays caused by ministries in holding of regular DAC meetings, legal complexities
in sub-judice. Addressing these challenges, Mr. Ahmed streamlined processes for discussion and
decision of paras pended for the last so many years. Indeed, he has performed well in the pursuit
of justice enforcing regular DAC meetings, creating accountability measures, and expediting
legal proceedings to avoid any delay in due process of the PAC. Mr. Ahmed plays a crucial role
in persistently engaging with the issues, presenting facts, and ensuring compliance with rules. .

3.2 Justice in NCHD Recruitment Case:

The controversy between the NCHD and the Audit created unmatchable sufferings for the
37 employees of NCHD. The officers knocked at the door of the PAC for justice and with the
dedicated efforts of Mr. Ahmed the affected employees of the NCHD were extended just and fair
treatment alleviating their miseries. This has happened due to the efforts of Mr. Ahmed.

3.3 Audit Paras Related to CDA:

 The issue of settlement of paras relating to the CDA for the years 2010-11 were lingering
since long on the ground of deviations in projects design after completion of bidding process.
Such irregularity not only caused delay in execution of the project but also led to escalation of
the project cost. In addition, the contractor and his company both were suffered due to inaction
of the CDA. Mr. Ahmed performed his duties honestly and in the best interest of the nation. His
efforts proved fruitful and the issues got settled. Ultimately, the contractor, the company and lots
of workers got justice from the PAC.

3.4 Huge workload:

Mr. Ahmed has faced huge workload. Presently, over 40,000 audit paras are pending for
examination and 10,000 paras are pending for implementation since 2010-2011 to 2021-2022. In
addition, annual reports are also pending since the year 2010. Pending report identifies failures
within the system, including delays in providing relevant records to Audit, lack of
implementation of PAC directives, violations of procurement rules and delays in reconciliation
processes. These challenges have increased workload of PAC manifold and underscore the
struggle in the pursuit of justice.

3.5 Court Cases:

Mr. Ahmed has pointed out another very hard challenge in facing court cases. Presently,
25 cases are pending adjudication before various court all over the country against the PAC.
Almost in all cases, the directions of the PAC have been stayed. The increasing trend for filing
cases against the PAC and attitude of the courts in granting stay has hampered the working of the
PAC badly. Legal complexities in sub-judice cases and divergent decisions from the courts
further compound the backlog, causing financial losses and hampering accountability.

3.6 Inquiries in the LEAs:

Mr. Ahmed has pointed out 278 cases / inquiries are pending in the National
Accountability Bureau referred by the 13th, 14th and 15th PAC and 32 cases / inquiries are pending
in the Federal Investigation Agency referred by 15th PAC. Whenever, any of the above agency
starts investigating a case, it is challenged. Consequently, the inquiries are pending and the PAC
is waiting for reports from the Law Enforcing Agencies.
3.7 Monthly DAC Meetings and Resistance to Pressure:

Mr. Ahmed points out persistent issue of convening of DAC meetings irregularly and
resistance to withstand against pressure to expedite pending matters demonstrate a unique type of
challenges in implementing PAC directives. The commitment to follow the applicable rules and
transparent processes is evident in these efforts. Mr. Ahmed is also of the view that the PAC,
through its directives, strives to rectify financial irregularities, ensure accountability, and
promote transparent governance. He emphasises the need for continuous efforts and reforms in
public administration for the benefit of the public and the effective functioning of government
entities.

3.8 Role of the PAC workforce:

Mr. Ahmed is of the view that the PAC can work for the nation and country in
unprecedented manner subject to provision of essential guidance, precision, relevance, and fair
recommendations by the committee and with the help of well trained and committed staff,
follow-up mechanism, established procedures and collaborates with senior management of the
government for effective oversight. Avoidance of external pressures and ensuring unbiased
resolution remains a consistent characteristic of result oriented efforts.

3.9 Week Implementation Mechanism:

Mr. Ahmed is of the view that the PAC Implementation Wing is very week. It has neither
sufficient staff, nor trained employees and nor effective follow-up procedure. Resultantly, 10,000
paras are pending for implementation. If such deficiency is continued for few years, the paras
pending before the PAC mani and PAC Implementation Wing will become equal. This will
further affect parliamentary oversight and control over the financial affairs.

WAY FORWARD
Conclusion:

Through this case study, Mr. Ahmed has examined all relevant issues in depth and
sensitivities relating to the financial management, accountability and governance within
government entities, with a specific focus on the Ministries of Federal Education & Professional
Training and Interior, including the Capital Development Authority. This study unveils a
complex phenomenon of irregularities and financial discrepancies underscoring a commitment to
transparency and ongoing endeavours to address these issues.

The audit reports within the Ministry of Federal Education & Professional Training
present a bright picture of challenges in recruitment, financial management, and governance. The
Departmental Accounts Committee and Public Accounts Committee have become focal points
for intense discussions, emphasizing settlement and further investigations. The National
Commission for Human Development has made its employee victim of deduction of allowances.
Ongoing deliberations in DAC and PAC meetings highlight the persistent nature of the issues.
Despite management responses, the DAC recommends a comprehensive report for a thorough
understanding, indicating a commitment to unearthing the root causes of the problems.

The withdrawal of public funds through bogus bills prompts recovery efforts,
investigations, and DAC directives for inquiry and fixing responsibility, showcasing a multi-
faceted approach to resolution.

As far as the Ministry of Interior, specifically focusing on the CDA is concerned, the
study sheds light on audit findings revealing deviations in projects and financial irregularities.
The PAC's efforts concentrate on recovering losses, fixing responsibilities, and improving
project management practices. Specific issues such as unauthorized expenditures and non-
execution of works receive attention, reflecting a comprehensive approach to financial oversight.
The study further underscores failures in various entities, including the National Assembly
Secretariat, PAC, Principal Accounting Officers, and Law Enforcement Agencies. Delays,
violations, and incomplete inquiries are pointed out, indicating areas for improvement and the
need for a holistic re-evaluation of internal processes.

The persistent nature of unresolved issues, pending audit paras since 1985, and the
increased workload of the PAC due to non-implementation of directives has emerged the need
for rigorous oversight and reforms in public administration. Irregularities in holding DAC
meetings contribute to the backlog, indicating systemic issues and hindering efficient financial
management. Meetings with the Chairmen of PAC and Convener of Sub-Committees shown
collaborative efforts to address issues related to NCHD and CDA, highlighting the importance of
persistent efforts in pursuing financial justice. The refusal to submit before pressure and the
commitment to resolving matters in accordance with prescribed rules demonstrate the integrity of
the process.

Upshot of this study leads to conclude that this exhaustive study presents a
comprehensive picture of the complexities, challenges, and ongoing efforts in the pursuit of
financial justice and accountability within government entities. The PAC emerges as a crucial
player with its multifaceted functions, commitment to transparency, and non-partisan oversight,
emphasizing the need for continuous improvements, adherence to procedures, and a
collaborative approach to ensure responsible governance for the benefit of the public. This
narrative summarises the ongoing struggle for financial justice and sets the stage for the
imperative reforms needed in the landscape of public administration. The journey depicted in this
conclusion is not just a bureaucratic account but a evidence to the resilience and dedication
required to ensure justice and transparency in the administration of public funds, ultimately
serving the greater good.

Lessons Learnt:

The extensive case study on the National Commission for Human Development recruitment
case, Ministry of Interior audit paras, and the overall role of the Public Accounts Committee
provides valuable insights into the challenges and resolutions within government entities. Here
are the key lessons learned from the text:

1. Importance of Transparent Procedures:

The NCHD recruitment case underscores the critical importance of transparent

procedures and strict adherence to regulations in government recruitment and financial
management. Procedural lapses identified in the Special Audit Report raised concerns and
highlighted the need for robust systems to ensure fairness and accountability.

2. Role of Ahmed in Facilitating PAC Functions:

Mr. Ahmed plays a pivotal role in facilitating the PAC's functions, acting as a bridge
between committee members, government officials, and stakeholders. Their responsibilities
include ensuring smooth communication, coordinating meetings, and assisting in the formulation
of directives. This highlights the significance of effective communication and coordination in
parliamentary oversight.

3. Need for Clarity in Interpretation of Ordinances:

The confusion regarding the National Commission for Human Development's authority
to determine remuneration under clause 12 of the NCHD Ordinance emphasizes the need for
clarity in the interpretation of legal documents. Clear and unambiguous language in ordinances is
essential to avoid disputes and ensure a smooth functioning of government entities.

4. Collaborative Efforts to Address Complexities:

The ongoing discussions and actions related to the NCHD case demonstrate a
collaborative effort to address complexities and ensure effective governance. Collaboration
between the PAC, Ministry of Federal Education and Professional Training, and other
stakeholders is essential for resolving issues and implementing corrective measures.

5. Commitment to Accountability and Justice:

The PAC's role in scrutinizing audit findings, issuing recommendations, and overseeing
subsequent actions highlights a commitment to accountability and justice within government
entities. The temporary halt on the recovery process, pending the DAC meeting, illustrates the
committee's dedication to fair and thorough deliberation before implementing corrective actions.

6. Efficiency in Resolving Long-Pending Issues:

The efforts led by Mr. Ahmed in resolving long-pending audit paras related to the
Ministry of Interior (CDA) demonstrate the efficiency that can be achieved through persistent
efforts. The case study highlights the importance of addressing issues transparently, fairly, and
justly, contributing to the resolution of prolonged challenges.

7. Role of PAC in Addressing Financial Irregularities only:

The PAC's examination of various financial irregularities, coupled with its

recommendations and actions, underscores its crucial role in addressing issues related to public
funds. The committee's focus on inquiries, recoveries, settlements, and verifications showcases
its commitment to upholding financial discipline and transparency.

8. PAC's Directives for Inquiry and Recovery:

The PAC's directives for inquiries under E&D Rules, emphasis on recovering losses, and
holding individuals accountable highlight the committee's proactive approach in addressing
financial discrepancies. This demonstrates the committee's commitment to ensuring that public
funds are utilized efficiently and in accordance with established rules.

9. Commitment to Justice, Transparency, and Accountability:

The overall impact of the PAC's efforts, guided by Mr. Ahmed, reflects a commitment to
justice, transparency, and accountability in the administration of public funds. The case study
serves as a testament to the role of parliamentary committees in advancing good governance
practices.

10. Challenges Faced by PAC and Role of Ahmed:

The challenges faced by the PAC, such as a mounting workload, delays, and legal
complexities, highlight the need for effective management and oversight. Mr. Ahmed's role in
addressing these challenges by providing guidance, actively participating in crafting audit paras,
and leading discussions is crucial for maintaining precision, relevance, and fair
recommendations.

11. Commitment to Adherence to Rules and Transparent Processes:

Despite external pressures, Mr. Ahmed and the PAC exhibit a commitment to adherence
to rules and transparent processes. This commitment is crucial in maintaining the integrity of the
oversight process and ensuring unbiased resolution efforts.

12. Struggle for Justice Within Government Entities:

The multifaceted struggle for justice within government entities is evident from the
examination of audit paras and the challenges faced by the PAC. The report highlights the
complexities involved in rectifying financial irregularities, addressing procedural lapses, and
ensuring accountability.

13. Continuous Efforts and Reforms for Effective Governance:

The ongoing challenges identified in the pursuit of justice underscore the need for
continuous efforts and reforms in public administration. The report emphasizes the importance of
addressing failures within the system, implementing PAC directives, and promoting good
governance practices for the effective functioning of government entities.

14. Lessons from Pended Audit Paras and Legal Complexities:

The large number of pending audit paras and legal complexities underscore the
challenges in the oversight process. Ministries under scrutiny, such as Water Resources,
Communications, and Defense, indicate a pervasive need for rigorous oversight. Lessons learned
include the necessity of expediting the examination process and addressing legal complexities
efficiently.

15. Importance of Monthly DAC Meetings:

The irregular convening of DAC meetings and resistance to pressure to expedite matters
demonstrate challenges in implementing PAC directives. The commitment to adherence to rules
and transparent processes is evident in these efforts, emphasizing the importance of regular and
timely departmental meetings for effective oversight.

To cut it short, the case study provides a rich source of lessons on the importance of
transparent procedures, the role of key stakeholders like Mr. Ahmed, the need for clarity in legal
interpretations, collaborative efforts in addressing complexities, and the ongoing commitment to
justice, transparency, and accountability within government entities. These lessons can serve as
valuable insights for policymakers, government officials, and those involved in parliamentary
oversight processes to enhance the effectiveness of governance and financial management.

Recommendations:

(a) Short Term Recommendations:

 1. Research Support for PAC Members:

Recognizing the complexity of issues under consideration, PAC members should be

provided with research support. A team of researchers can assist members in in-depth analysis
and fact-finding, ensuring a well-informed and comprehensive approach to addressing specific
issues.

2. Media and Coordination Sub-Committee:

To enhance transparency and public engagement, the PAC should appoint a dedicated
sub-committee responsible for facilitating coordination with the media. This sub-committee will
ensure that relevant information is communicated effectively to the public and that media
interactions align with the committee's objectives.

3. Establishment of Monitoring and Implementation Sub-Committees:

Form two sub-committees—one for monitoring and another for implementing previous
PAC reports. These sub-committees will contribute to the systematic follow-up on
recommendations, ensuring that the PAC's oversight efforts result in tangible improvements in
governance.

4. Verbatim Record for Accuracy and Transparency:

The PAC should adopt the practice of preparing a verbatim record of its proceedings.
This meticulous documentation is crucial for accuracy and transparency, providing an
authoritative record of discussions and decisions.

(b) Medium Term Recommendations:

1. Establishment of Structural Changes and Report Submission Sub-Committee:

In accordance with rule 234, the PAC should promptly establish a sub-committee tasked
with suggesting structural changes to enhance PAC performance. This sub-committee should
diligently work and submit its findings and recommendations to the PAC within one month,
facilitating a swift review and implementation of suggested improvements.

2. Formulation of Supplementary Rules for Business Regulation:

 The PAC secretariat should take proactive steps to frame supplementary rules, as per rule
240, aimed at regulating the business proceedings of the PAC. These rules would provide clear
guidelines on the conduct of PAC meetings, decision-making processes, and other essential
aspects, fostering an organized and efficient workflow. In addition, there should be skilled staff
including financial managers, legal experts and report writers to make the functions of the
Committee effective and fruit bearing in the best interest of the country and the nation.

3. Online IT and Website Management Enhancement:

The PAC should appoint a dedicated IT officer responsible for managing the PAC
website. To enhance efficiency, the digitalization of the entire PAC process should be undertaken,
utilizing specific software modules. This initiative will contribute to streamlined communication,
document management, and accessibility. The Committee has huge pending business at its credit.
The only way forward to overcome the huge workload is to convert the working of the
Committee on a paperless regime.

4. Initiation of Training Programs for PAC Members and Staff:

Initiate comprehensive training programs for both PAC members and staff, covering
essential areas such as basic financial systems, modern oversight practices, and IT skills. This
investment in training will equip PAC members and staff with the necessary skills to navigate
contemporary challenges effectively.

5. Directive for Concise Summary Preparation by Auditor General:

Direct the Auditor General to prepare a concise summary of every audit para along with
corresponding recommendations. This practice will facilitate a clearer understanding of audit
findings and streamline the PAC's review process.

6. Formation of Admissibility Review Sub-Committee:

Establish a sub-committee dedicated to reviewing the admissibility of public hearings and

petitions brought before the PAC. This sub-committee will ensure that matters under
consideration align with established guidelines, promoting efficiency and focus in PAC
proceedings.

(c) Long Term Recommendations:

1. Global Comparative Study on PAC Rules:

Undertake a comprehensive study comparing PAC rules with those of renowned

parliamentary democracies. This initiative will provide valuable insights into international best
practices, allowing the PAC to adopt and adapt successful strategies for more effective oversight.
The team of PAC should visit the countries where the best practices have been developed in the
field of financial management and transparency.

2. Consideration for Professional Hiring:

Consider hiring professional experts on a contractual basis, including accountants,

economists, public finance specialists, IT professionals, and social media experts. This strategic
move will bring specialized skills to the PAC, enhancing its ability to address complex financial
and technological issues.

3. Facilitation of International Visits:

Provide opportunities for PAC members to visit other parliaments and observe
international best practices in financial oversight. These visits will offer valuable insights,
fostering a culture of continuous learning and improvement within the PAC.

4. Introduction of Penalties for Violations:

Introduce penalties for repeated violations, including deferring promotions, recording

adverse remarks, and placing letters of displeasure in personal files. This will underscore the
importance of adherence to rules and procedures, reinforcing accountability within the PAC.

5. Promotion of DAC Involvement in Audit Paras Discussions:

Encourage discussions on audit paras within the Departmental Accounts Committees

(DAC) before PAC examination. This proactive involvement of DAC will contribute to a more
thorough and nuanced examination of financial matters, reducing delays in the overall PAC
process.
Annexures & Attachments
 Annexure-1: Extract from the RP & CN in NA in NA, 2007

PUBLIC ACCOUNTS COMMITTEE

202.Composition.- (1) The Standing Committee on Public Accounts shall consist of not more
than twenty nine members, of which-
(a) twenty three shall be elected by the Assembly from amongst its members; and
(b) six shall be elected by the Senate from amongst its members, one from each Province,
Islamabad Capital Territory and the Federally Administered Tribal Areas, out of
which three shall be from the Treasury benches and three from the Opposition
benches.

(2) The Minister for Finance shall be ex-officio member of the Committee.

(3) Notwithstanding anything contained in rule 216, the Chairman of the Committee shall be
from the Assembly.

203. Functions.- (1) The Committee shall examine the accounts showing the appropriation of
sums granted by the Assembly for the expenditure of the Government, the annual finance
accounts of the Government, the report of the Auditor-General of Pakistan and such other matters
as the Minister for Finance may refer to it.

(2) In scrutinizing the appropriation accounts of the Government and the reports of the Auditor-
General of Pakistan thereon it shall be the duty of the Committee to satisfy itself-
(a) that the moneys shown in the accounts as having been disbursed were legally available
for, and applicable to the service or purpose to which they have been applied or charged;
(b) that the expenditure conforms to the authority which governs it; and
(c) that every re-appropriation has been made in accordance with the provisions made in this
behalf under rules framed by the Ministry of Finance.

(3) It shall also be the duty of the Committee-

(a) to examine the statement of accounts showing the income and expenditure of state
corporations, trading and manufacturing schemes, concerns and projects together with the
 balance sheets and statements of profit and loss accounts which the President may have
required to be prepared or are prepared under the provisions of the statutory rules
regulating the financing of a particular corporation trading or manufacturing scheme or
concern or project and the report of the Auditor-General of Pakistan thereon;
(b) to examine the statement of accounts showing the income and expenditure of autonomous
and semi-autonomous bodies, the audit of which may be conducted by the Auditor-
General of Pakistan either under the directions of the President or under an Act of Majlis-
e-Shoora (Parliament); and
(c) to consider the report of the Auditor-General of Pakistan in cases where the President
may have required him to conduct the audit of any receipt or to examine the accounts of
stores and stocks.

(4) If any money has been spent on any service during a financial year in excess of the amount
granted by the Assembly for that purpose, the Committee shall examine with reference to the
facts of each case the circumstances leading to such an excess and make such recommendation
as it may deem fit.
1
(5) The report of the Committee shall be presented within a period of one year from the date on
which reference was made to it by the Assembly unless the Assembly, on a motion being made,
directs that the time for the presentation of the report be extended to a date specified in the
motion:
Provided that extension in the time for the presentation of the report shall be asked for
before the expiry of the time allowed under the rule.

204. Unfinished work of the Committee.- Any report, memorandum or note that the Committee
may have prepared, or any evidence that the Committee may have taken before the dissolution of
the Assembly, shall be made available to the new Committee.

205. Continuity of the proceedings.- Notwithstanding anything contained in these rules, the
Public Accounts Committee may proceed from the stage where the previous Committee left the
proceedings before the dissolution of the Assembly.
Annexure-2: Performance of PAC
Annexure-3: Actionable Points of PAC
Annexure-4: Notice of PAC
SOURCES:

 Interview conducted by Iftikhar Ahmed with Mr. Noor Alam Khan, MNA/Chairman,
PAC on 10th July, 2023.

 Interview conducted by Iftikhar Ahmed with Sardar Ayaz Sadiq, former Speaker/
Convener, Sub-Committee of PAC on 12th July, 2023

 Interview conducted by Iftikhar Ahmed with Mr. Riaz Fatyana, MNA/Convener, Sub-
Committee of the PAC on 12th July, 2023

 Interview conducted by Iftikhar Ahmed with Dr. Muhammad Afzal Khan Dhandla,
MNA/Member of the PAC on 12th July, 2023

 Interview conducted by Iftikhar Ahmed with Mr. Muhammad Ajmal Gondal, AGP on
13th July, 2023

 Interview conducted by Iftikhar Ahmed with CGA on 13th July, 2023

 Interview conducted by Iftikhar Ahmed with Syed Fayyaz Hussain Shah, Additional
Secretary, NAS on 13th July, 2023

 Interview conducted by Iftikhar Ahmed with Chairman, CDA on 15th July, 2023

 Interview conducted by Iftikhar Ahmed with Director General, FDE on 16th July, 2023

 Interview conducted by Iftikhar Ahmed with Secretary, Ministry of FE & PT on 18 th July,

2023
Working papers…………………..
 The Constitution of the Islamic Republic of Pakistan
https://na.gov.pk/uploads/documents/640b00c9009d8_878.pdf (accessed on 20th
November, 2023)

 Rules of Procedure and Conduct of Business in the National Assembly, 2007

https://na.gov.pk/uploads/documents/64a6c08ce0b3b_624.pdf (accessed on 25th
November, 2023)

 The Auditor General's (Functions, Powers and Terms and Conditions of Service)
Ordinance, 2001
https://agp.gov.pk/Detail/
OWYxMTgzMDktYWUwMC00NmNkLWJhOTMtZGUyOTZlNDNlNmQx (accessed
on 29th November, 2023)

 The Controller General of Accounts (Appointment, Functions and Powers) Ordinance,

2001.
https://agp.gov.pk/SiteImage/Misc/files/CGA-Ordinance(1).pdf (accessed on 29th
November, 2023)
Images of meetings of the PAC