PAC directs enquiry against PD officials for depositing billions in 10 private banks

ISLAMABAD: The Public Accounts Committee (PAC) Thursday directed the Privatisation Division (PD) to hold an inquiry against its officials for making investment of billions of rupees in 10 private banks in violation of rules and also fix the responsibilities against those officials who were found responsible in the inquiry.

PAC also directed the Privatisation Division to submit a report to the PAC Secretariat within one month’s time. It also directed the Privatisation Division to recover the actual amounts of investment and interest from another private bank in which the investment of Rs500 million.

The meeting of the Sub-committee of the PAC was held with eh chair of its Chairman Rana Tanveer Hussain in which the audit paras related to Privatisation Division for the year 2012-13 were examined.

The Audit officials told PAC that the Privatisation Division from year 2007 to 2012 has kept the funds of Rs5,73 billion into different banks for the investment purposes.

The 10 banks in which the investment was made included Habib Metro Bank, Atlas Bank, KASB Bank, Faysal Bank, Bank Al-Falah, Arif Habib Bank, Trust Bank, Khyber Bank, Habib Bank Ltd and United Bank Ltd.

The Audit officials objected that the board members of some of the private commercial banks were also on the board of the Privatisation Commission, and it was a clear clash of interest, and the Privatisation Division was only bound to deposit these funds only the National Bank of Pakistan for the investment purposes.

The Privatisation Division Secretary Rizwan Malik told PAC that the view point of the Privatisation Division was remain different from the Audit department. “In a prima fascia the investment made in private bank was a wrong step and appointed the Executive Director General of the Privatisation Division for holding inquiry. PAC Chairman Rana Tanveer Hussain questioned that why the Privatisation Commission did not hold the inquiry in last 7-years.

The Auditor General of Pakistan Javaid Jehangir said that the Audit department’s only objection was that why the Privatization Division did not deposit the funds generated through the privatisation into consolidated funds of the Ministry of Finance.

On this PTI member of PAC Raja Riaz remarked that if the billions of rupees were kept in the private banks then more commission and other benefits were collected.

Secretary Privatization Division told PAC that all of this amount was not gained only through the privatization, but it also includes the fees collected by the Privatisation Commission and an amount over Rs2 billion still lying in the banks.

PAC Member Sanaullah Mastikhel suggested that the matter should be refer to NAB without waiting of the inquiry report of the Privatisation Division.

PAC Member Ms Shahida Akhtar Ali remarked that it seems the federal government should have to form another committee to improve the affairs of the Privatisation Division.

However, the PAC Chairman, Rana Tanveer Hussain, directed the Privatisation Division to hold inquiry with fixing the responsibility on those officials who were found responsible and submit the report to the committee within a month time.

While detailing the amount of Rs500 million kept in the Trust Bank, the Secretary Privatisation Commission told the committee that this amount has been increased from Rs500 million to Rs630 million and out it Rs490 million has been recovered while Rs140 still have to be recovered.

NAB representative in the meeting told the committee that recovery of Rs490 million was possible due to the NAB efforts and will complete the inquiry against Trust Bank in one month.

Meanwhile, during the meeting of the PAC examining the audit paras related to Privatisation Division, the PAC chairman and member Noor Alam Khan exchanged hot words.

PAC member Senator Sherry Rehman tried to stop them from making any further comment. He observed that under the rules, he (Noor Alam Khan) should not speak without his permission.