PAC head lauds govt for winding up PWD

ISLAMABAD: The Public Accounts Committee (PAC) Tuesday expressed satisfaction over the government’s decision to wind up the Pakistan Works Department (PWD) while strongly criticising the department’s performance.

Chairman Junaid Akbar Khan remarked he had “never seen a corrupt department like the PWD” during a meeting to examine audit paras related to the Ministry of Housing and Works for financial years 2022-23 and 2023-24.

The committee sought details from the National Accountability Bureau (NAB) regarding cases against PWD officials and recoveries made, while also directing NAB to provide information on the government’s annual expenditure on the accountability watchdog versus recoveries it made.

The Auditor General of Pakistan reported irregularities worth over Rs33.65 billion in the Ministry of Housing and Works and its attached departments, granting two months to investigate all audit objections and identify those responsible.

Secretary Ministry of Housing and Works informed the committee that while the cabinet had decided to abolish the PWD, no final decision had been implemented yet. He confirmed PWD schemes had been transferred to provinces and the Capital Development Authority (CDA), though the Auditor General noted these transfers were causing delays and escalating costs.

PAC members expressed serious concerns over widespread corruption in PWD, with Chairman Khan stating, “There is not a single PWD Xen against whom NAB has not filed a case,” adding that closing “this most corrupt department” was a good decision. The Secretary Housing and Works admitted corruption exists in other ministries and departments too but said PWD’s issues were more visible.

“As secretary, I endured a lot of pressure to run the PWD but the announcement of PWD closure saved me from enduring more pressure,” he said.

Committee member Omar Ayub Khan suggested a performance audit of PWD, but the Auditor General clarified such audits are conducted only for specific projects, not entire departments.

On the issue of lapse of granting funds during the review of audit objections related to Housing and Works, the housing and works secretary said that the final release was granted late by the Ministry of Finance

Member Syed Naveed Qamar questioned why funds were disbursed as late as June 26.

The PAC chairman inquired from the Finance Ministry officials whether they had released funds for the lapse.

The matter was deferred for further review, with plans to summon the Finance and Planning secretaries to address procedural issues.

Audit objections revealed Rs18.4 million spent on maintenance of luxury items in two unidentified houses, with officials failing to disclose occupants. However, they ensured the committee to inform after checking record.

Another Rs11 billion was paid to contractors for development works without lab reports, while Rs12 billion worth of works were awarded irregularly by the PWD.

The committee expressed frustration over incomplete inquiries and non-compliance with directives, ordering action against responsible officers and demanding responses within one to two months.

Junaid Khan emphasised, “Action must be taken against those responsible, and the committee must be informed of the steps taken.”

The PAC chairman questioned why, despite the Departmental Accounting Committee’s (DAC) 2024 directive for an inquiry to be completed within 30 days, the matter remained unresolved. Expressing concern over the delayed investigation, Chairman Junaid Khan specifically demanded to know what disciplinary action had been taken against the inquiry officer responsible for the lapse.

In response, the Housing and Works Secretary stated the officer had been given a seven-day deadline to complete the inquiry, following which the committee decided to defer further discussion on the matter.

During proceedings, committee members uncovered serious irregularities in 952 development projects nationwide, where contracted work standards were not being met. The report presented to the committee suggested possible collusion, revealing that billions of rupees had been disbursed without proper review of progress reports.

Committee members voiced strong disapproval over the housing and works secretary’s failure to ensure project completion as required.

They issued directives for submission of a detailed response to the audit objections within one month, disciplinary action against all responsible officers, and compliance reporting back to the committee regarding the actions.