ISLAMABAD: The Prime Minister Office has been found ignoring the austerity measures that it had approved for the entire government besides paying honorarium to its officials in violation of policy.
The Auditor General of Pakistan in its latest report said that the PM Office during 2022-23 did not follow austerity measures regarding operational expenditure. When the audit authorities approached the PM Office for an explanation, the latter did not bother to reply both in the case of austerity measures and the payment of irregular honorarium.
About the “Non-enforcement of Austerity Measures @15% Cut”, the Audit report said that the para (iii) of Finance Division vide letter dated 27.02.2023 states that single dish in case of meals and tea and biscuits on other occasions shall be served in government events and meetings. Para (iv) of Finance Division vide letter dated 27.02.2023 states that 15% Cut (on annualized basis) shall be applied in current expenditure of all ministries/division/attached departments/subordinate offices/autonomous bodies etc.
“The management of the Prime Minister Office (Internal), Islamabad incurred expenditure on specific Head of Accounts. Audit observed that the management did not follow austeritmeasures regarding operational expenditure,” said the report, adding, “The management did not reply. Audit recommends regularization of excess expenditure from the Finance Division.”
Regarding irregular payment of honorarium over and above the limits, the Audit report said that Finance Division letter No.F.1(1) Exp-II/2022-22 dated 27.01.2022 states that the prime minister directed that no forum (Finance Division/Chairman, (ECC) will approve grant of honorarium to federal government employees beyond a single basic pay during one fiscal year till such time that a policy in the matter is approved by the federal cabinet.
“The management of the Prime Minister Office (Internal), Islamabad incurred expenditure of Rs108,904,510 on account of payment of honorarium to its officials/officers during 2021-23 as per following details: “Audit observed officials/officers of PMO received more than one honorarium per year. Audit is of the view that payment of more than one honorarium per year to the officers/officials was a violation of powers delegated to the Principal Accounting Officer (PAO). The management did not reply. Audit recommends regularization of payment of more than one honorarium per year to the officers/officials from the Finance Division or recovery of the payment made over and above the limit prescribed by rules.”
The Auditor General report also talked about the PM’s Office irregular expenditure on procurements of drugs and medicine without open competition. The report said that Rule 8 of Public Procurement Rules, 2004 all procuring agencies shall devise a mechanism, for planning in detail for all proposed procurements with the objective of realistically determining the requirements of the procuring agency, within its available resources, delivery time or completion date, and benefits that are likely to accrue to the procuring agency in future.
Rule 12(1) of Public Procurement Rules, 2004 states that procurements over five hundred thousand Pakistani rupees and up to the limit of three million Pakistani rupees shall be advertised on the Authority’s website in the manner and format specified by regulation. These procurement opportunities may also be advertised in print media, if deemed necessary by the procuring agency. The management of the Prime Minister’s Office (Internal), Islamabad (Dispensary IB-0912) incurred expenditure Rs7,895,680 under the Head A-03927 (Purchase of Drug and Medicine) during 2020-23.
The audit observed that the procurements were made without open competition. Audit is of the view that non-obtaining of competitive rates through annual tendering is violation of Public Procurement Rules, 2004 leading to mis-procurement. The department did not reply. Audit recommends stoppage of irregularity and regularisation of expenditure from the Finance Division.
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