INTRODUCTION

A country exists to provide its citizens inalienable right

to enjoy the protection of law and to be treated in
accordance with law with freedom from poverty,
freedom from servitude and a quality of life where they
are able to live without fear of injustice and tyranny.
Nothing harms these objectives more than lack of
accountability in the organs of the state. The first victim
is the development process itself as inequalities get
entrenched and law and order breaks down.

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ACCOUNTABILITY AS ENSHRINED IN HOLY
QURAN
We are all accountable in front of Almighty Allah
Al-Quran:
“we shall set up scales of justice for the day of judgment,
so that not a soul will be dealt with unjustly in the least.
And if there be (no more than) the weight of a mustard
seed, we will bring it (to account) and enough are we to
take account” (21:47)
 ACCOUNTABILITY AS ENLIGHTENED
BY HOLY PROPHET (PBUH)
A Hadith of Prophet Muhammad (PBUH) also emphasize
the significance of Accountability in front of Almighty
Allah:

“The son of Adam (AS) will not pass away from Allah
until he is asked about five things: how he lived his life
and how he utilized his youth, with what means did he
earn his wealth, how did he spend his wealth and what
did he do with his knowledge” (Iman-Al-Tirmithi)
 Accountability as enunciated
in the Constitution

“Obedience to the Constitution and law is the [inviolable]

obligation of every citizen wherever he may be and of every
other person for the time being within Pakistan.”
Article 5(2)

Brief Definition:
The obligation of an individual or organization to account
for its responsibilities/ activities and to disclose the
results in a transparent manner. It also includes the
responsibility for money or other entrusted property.
 KLITGAARD’S FORMULA
 There is a formula which shows the significance of
Accountability: C=M+D-A
 If a system gives an official monopoly power and
discretion to decide the use of authority of his office
without making him accountable then it leads to
corruption.
 Lack of accountability makes the system vulnerable to
power abuse and exploitation.
 If accountability is present then this single factor
changes the equation of corruption.
 Accountability Framework in Pakistan

Federal Government:

The executive authority of the Federation shall be exercised in the

name of the President by the Federal Government, consisting of the Prime
Minister and the Federal Ministers, which shall act through the Prime
Minister, who shall be the chief executive of the Federation. (Article 90 of the
Constitution)

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 Accountability Framework in Pakistan

Role of Secretary / Principal Accounting Officer (PAO):

(a) Be the Principle Accounting Officer of his Division, its Attached

Departments and Subordinate Offices, and ensure that the funds
controlled by him are spent in accordance with the rules laid down
by the Finance Division
(b) Subject to provisions of these rules and with the approval of the
Minister-in-Charge, issue standing orders laying down the manner
of disposal of cases in the Division, including the distribution of
work amongst the officers of his Division and such orders may
specify the cases or class of cases which may be disposed of by an
officer subordinate to him
(c) Be responsible for the careful observance of these rules and where,
he considers that there has been any material departure from them,
either in his own or any other Division, he shall bring the matter to
the notice of the Minister-in-Charge and, if necessary, to the notice of
the Prime Minister or the Cabinet.
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 Accountability Framework in Pakistan
Responsibilities of Principal Accounting Officer:

a) Control Over Expenditure

b) Observance of Rules, Regulations and Instructions
c) Maintenance and Reconciliation of Accounts
d) Realization of Receipts
e) Utilization of Services of Financial Adviser
f) Meeting of Departmental Accounts Committee

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 Accountability Framework in Pakistan

Finance and Accounts Officer:

In each Ministry/Division there shall at least be a well-trained and
experienced Finance and Accounts Officer to assist the Principal
Accounting Officer on all financial, budgetary and financial matters.

Responsibilities of Finance and Accounts Officer:

a) Maintenance and Reconciliation of Accounts
b) Coordination and Scrutiny of Budget
c) Consolidation of PSDP
d) Advice in Delegated Field
e) Processing of Cases in Non-delegated Field
f) Public Accounts Committee
g) Internal Check
h) Compliance with Rules, Regulations and Orders

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 Accountability Framework in Pakistan

Financial Adviser:
The Financial Adviser shall continue to be under the administrative
control of the Finance Division. The Financial Adviser shall be a full-
fledged representative of Finance Division. The Financial Advisor
shall be responsible for monitoring the maintenance and reconciliation
of monthly accounts of Ministry/Division to which he is attached and
shall report regularly to the Finance Division about the reconciliation
of monthly accounts.
Responsibilities of Financial Advisor:
a) Proposal of Supplementary Grant in respect of unexpected
expenditure
b) Lump-sum Provisions
c) Re-appropriation of funds
d) Advance payments
e) Approval of Expenditure and Budget Provision
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 Accountability Framework in Pakistan

Standards of Financial Propriety:

Every officer authorized to incur expenditure from the public funds
should observe high standards of financial propriety, such as:
a) Every public servant is expected to exercise the same vigilance in respect
of expenditure from public money, as a person of ordinary prudence
would exercise in respect of expenditure of his own money,
b) The expenditure should not be prima-facie more than the occasion
demands
c) No authority should pass any order which will be directly or indirectly to
his own benefit
d) Public money should not be utilized for the benefit of a particular person
or section of the community unless:
• The expenditure involved is insignificant
• A claim for the amount can be enforced in a Court of Law
• The expenditure is in pursuance of a recognized policy or custom
e) The amount of allowances should be so regulated that it is not, on the
whole, a source of profit to the recipients

11  [Rule 10 of GFR]
 Accountability Framework in Pakistan

Auditor General of Pakistan:

The Auditor-General shall audit the accounts of the Federal and of the
Provincial Government and the accounts of any authority or body
established by, or under the control of, the Federal or a Provincial
Government. [Article 169 of the Constitution]

Reports of Auditor-General of Pakistan:

The reports of the Auditor-General relating to the accounts of the

Federation shall be submitted to the President, who shall cause them to be
laid before the Parliament and the reports of the Auditor-General
relating to the accounts of a Province shall be submitted to the
Governor of the Province, who shall cause them to be laid before the
Provincial Assembly. [Article 171 of the Constitution]

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 Accountability Framework in Pakistan

Functions of Auditor General of Pakistan:

• Grants or loans given to other authorities or bodies
• Audit of receipts of Federation or of Provinces or of districts
• Audit on accounts of stores and stock
• Powers of Auditor-General in connection with audit of accounts
• Audit of companies and corporations established in the public sector
• Audit of accounts of certain authorities or bodies
• Power to dispense with detailed audit
• Budgetary provisions

 AG’s(Functions, Powers and Terms & Conditions of Service) Ordinance, 2001

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 Accountability Framework in Pakistan

Functions of the Controller General:

a) To prepare and maintain the accounts of the Federation, the Provinces
and district Governments
b) To authorize payments and withdrawals from the Consolidated Fund
and Public Accounts of the Federal and Provincial Governments
against approved budgetary provisions after pre-audit checks
c) To prepare and maintain accounts of such organizations and
authorities established, set up or controlled by the Federation or
Provinces as may be assigned to him by the President or, as the case
may be, the Governor of a Province
d) To lay down the principles governing the internal financial control for
Government departments in consultation with the Ministry of Finance
and the Provincial Finance Departments

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 Accountability Framework in Pakistan

Functions of the Controller General:

e) To render advice on accounting procedures for new scheme, programs
or activities undertaken by the Government concerned
f) To submit accounts compiled to the auditor general, showing under
the respective heads, the annual receipts and disbursements for the
purpose of Federation and of each province
g) To provide, in so far as the accounts compiled by him permit, to the
Federal Government, Provincial Government or District Government
such information as such required by Government
h) Develop and maintain efficient system of pension, provident funds
and other retirement benefits
i) To co-ordinate and ensure resolution of audit observation of the Audit
Department
j) To prescribe syllabus, standards and provide facilities for the training
of officers and staff under his administrative control

 CGA (Appointment, Functions, and Powers) Ordinance, 2001

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 Accountability Framework in Pakistan
Public Accounts Committee (PAC) and Departmental Accounts Committee (DAC):
1. Being personally accountable to the PAC, the Principal Accounting Officer shall
attend all the meetings of PAC. The Principal PAO/ Additional Secretary or
equivalent shall regularly hold meetings of DAC as Chairperson, with
Financial/ Deputy Financial Adviser and Director General (Audit) as Members
and Chief Finance and Accounts Officer as Member/Secretary to watch the
processing of Audit & Inspection Reports and decide upon appropriate
measures so as to aid and accelerate the process of finalization.

2. PAC is a Standing Committee of the Legislature, at the Centre and in the

Provinces respectively, is constituted for the purpose of scrutiny the
appropriation accounts and the audit report thereon in terms on Article 171 of the
Constitution.
Functions of PAC is to check:
a) the money recorded as spent against the grant was actually spent and is not
larger than the amount granted
b) the money has not been spent for a purpose not approved by the Legislature
c) there are no other irregularities in the spending of public money by the Executive
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 Accountability Framework in Pakistan

Checks on Government Servants in

Government Servant (Conduct) Rules, 1964
• Declaration of Property
• Disclosure of assets, immovable, movable and liquid
• Speculation and Investment
• Promotion and Management of Companies
• Private trade, employment or work
• Subletting of residential accommodation allotted by Government
• Government Servant not to live beyond his means

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 Accountability Framework in Pakistan
Responsibility of Heads of Departments/Organizations to Eradicate Corruption
from Official Working Under them Under Government Servants (Efficiency
and Discipline) Rules, 1973:
Head of Organization should be made responsible for rectifying and
punishing corrupt officials working under them.

A Government Servant may be Penalized under Government Servants

(Efficiency and Discipline) Rules, 1973 if he:
• Is corrupt, or may reasonably be considered corrupt because
he is, or any of his dependents or any other person through
him or on his behalf is, in possession of pecuniary resources or
of property disproportionate to his known sources of income
• Has assumed a style of living beyond his ostensible means
• Has persistent reputation of being corrupt

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 Accountability Framework in Pakistan

Anti-Corruption Departments:
• Anti- Corruption Establishment
The Anti-Corruption Establishment Ordinance (XX) 1961 was promulgated on 8th
September, 1961 and the Anti-Corruption Establishment was created under Section 3 of
this Ordinance. This special agency was set up for the purpose of Investigation of
offences relating to corruption committed by Public Servants and for holding
preliminary enquiries against such servants in the Provinces.
• Federal Investigation Agency
Came into existence in 1975 following the promulgation of the FIA Act, 1974 with the
role of eradication of corruption. FIA carries out the investigation in receipt of reports of
corruption, either through Prime Minister’s Accountability and Coordination Cell or
directly from the public.
• National Accountability Bureau
National Accountability Bureau came into existence under of National Accountability
Ordinance, 1999 with the task of eradication of corruption in the country. NAB adopted
a three pronged strategy for curbing corruption. It deals with white collar crime and
makes public office holders accountable for the use of their authority.

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How Accountability positively influences Performance ?

• When different stake holders are confident about

proper accountability mechanism in the system, they are
more loyal to their work and more concerned about their
performance. When the sense of fairness and being
answerable exists it ultimately motivates the institutions
to perform upto mark.

• Accountability across the board discourages favoritism

and nepotism which is an encouraging factor for
employees and organizations.

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 How Accountability positively influences
Performance ?

• Accountability in simplified form is a check on

various steps and procedures in a body/ institute or
organization. These checks are basically placed to record the
performance and to monitor the weaker areas. Once the
accountability checks are strictly followed it becomes
difficult to dodge and take an excuse for performance
decline, hence makes the accountability instrumental to
performance improvement.
• Through greater accountability, the performance can be
improved not to the extent of individuals only but overall
perception creates a responsible environment, which
ultimately strengthens the Government system and leads
to institutionalization
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 Impact of Lack of Accountability

• Lack of Accountability leads to poor governance and corruption.

• It decimates the social and economic rights of majority and retard
the production capacity of the people and govt.
• It undermines the judicial system and rule of law.
• It causes flight of capital damaging industrial and financial stake
holders.
• It leads to disintegration of state organs and corrodes moral fabric
of society.
• It directly undermines the prosperity of a nation.

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 What We Need

 “ Only & Only strict observance and adherence, in

letter and spirit, of the available accountability legal
frameworks at each tier of the Government. “

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 NATIONAL ACCOUNTABILITY BUREAU

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 ORGANIZATIONAL STRUCTURE
CHAIRMAN

PGA
Dy Cn

DG DG DG DG DG
OPS A&P HQs T&E HR

DG NAB (P)
DG NAB (K)
DG NAB (R)
DG NAB (B)
DG NAB
(Sukkur)
DG NAB (KP) DG NAB
25 (Multan)
3-PRONGED STRATEGY

Awareness

Prevention

Enforcement

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 AWARENESS – LEGAL MANDATE

Section 33-C of NAO, 1999

• NAB shall constitute committees comprising of govt officers, experts
and members of civil society in order to;
• Educate and advise public authorities, holders of public office and
the  community at large on measures to combat corruption and
corrupt practices.
• Examine the laws, rules and regulations relating to various
ministries and departments of the Federal Government or Provincial
Government and recommend amendments in such laws, rules or
regulations, as the case may be, in order to eliminate the procedural
flaws and to ensure transparency in their working
Section 33-B of NAO, 1999
• All federal and provincial Ministries and Departments shall furnish a
copy of all contracts having monetary value of Fifty Million Rupees
or more.

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 ENFORCEMENT

• Enforcement is the most effective and swift approach towards

elimination of corruption.

• Section 9 of NAO, 1999 – defines the offences of corruption and

corrupt practices

• Section 10 of NAO, 1999 – enumerates/ covers penal provisions.

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 Cont…
ENFORCEMENT

• Intelligence Operation
• Investigation Operation
• Prosecution
• Recoveries
• Liaison with Domestic Anti Corruption/law
enforcement Depts.
• Partnership with international anti corruption
initiatives
• Linkages with Foreign Agencies through NAB HQ
Islamabad under MLA

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 OFFENCES UNDER SEC 9 OF NAO

• Misuse of authority
• Misappropriation/Embezzlement
• Accumulation of assets beyond means
• Bribery/ Illegal gratification
• Willful loan default
• Cheating Public at Large

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 APPLICATION OF NAO

• Government Officials
• Public Office Holders/Politicians
• Willful Bank Loan Defaulters
• Bank Officials/Financial Institutions
• Armed Forces personals serving in civil deptts
• Public Frauds
o Investment Companies
o Housing Societies/ Real Estate
o Professional Institutions (Medical colleges) etc
o Jobs / Loan offering companies etc

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 Voluntary Return (VR) & Plea Bargain (PB)
Section 25 (a), (b) & (c)
• Where a holder of public office or any other person, prior to the authorization of
investigation against him voluntarily comes forward and offers to return the assets or
gains acquired or made by him in the course, or as the consequence, of any offence under
this Ordinance, the Chairman NAB may accept such offer and after determination of the
amount due from such person and its deposit with the NAB discharge such person from
all his liability in respect of the matter or transaction in issue. (Provided that the matter is
not sub judice in any court of law).

• Where at any time after the authorization of investigation before or after the
commencement of the trial or during the pendency of an appeal, the accused offers to
return to the NAB the assets or gains acquired or made by him in the course, or as a
consequence, of any offence under NAO, 1999, the Chairman NAB may in his discretion,
after taking into consideration the facts and circumstances of the case, accept the offer on
such terms and conditions as he may consider necessary and if the accused agrees to
return to the NAB the amount determined by the Chairman, NAB the Chairman NAB
shall refer the case for the approval of the Court, or as the case may be, the Appellate
Court and for the release of the accused.

• The amount deposited by the accused with the NAB shall be transferred to the Federal
Government or, as the case may be, a Provincial Government or the concerned bank or
financial institution, company, body corporate, co-operative society, statutory body, or
authority concerned within one month from the date of such deposit.
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