The road to prosperity will remain a distant dream unless the government reduces its unproductive expenses
While the US President and his family don’t have to pay rent at the White House, they are responsible for personal costs. In a TV interview, former president Barrack Obama said he paid for groceries from toothpaste to toilet papers and dry cleaning from his own pocket. Even the family vacation was not free. There was no free lunch or breakfast or dinner for the US president on any day. It’s a long standing practice. A president pays for meals and beverages for himself, his family and personal guests.
This reminds one of the legacy of Pakistan’s founding father, Quaid-e-Azam Mohammed Ali Jinnah. Once, some items, amounting to Rs38.50, were purchased for Governor General’s (GG) House. The Quaid asked for the bill. A few items were purchased on Mohtarma Fatima Jinnah’s request. The Quaid gave instructions that the amount be deducted from her account. As a couple of items were for GG’s personal use, the Quaid advised that the amount be deducted from his personal account. The remaining items for the GG House, he said, may be charged to the government. As long as the Quaid remained at the helm of affairs, nothing except water was ever served in the Cabinet meetings.
Though with time the impact of the Quaid’s legacy has been weakening, it prevailed till 1970, when simple living and working with devotion and commitment was the norm. When Ch. Muhammad Ali was prime minister, his wife used to cook food herself. The number of domestic employees available to his present-day counterpart exceeds two hundred.
President Ayub Khan felt quite comfortable travelling by PIA’s commercial flights. Now, there are over two dozen planes for the exclusive use of the president, prime minister, governors and chief ministers to enjoy rides without any distinction of official or private use. Compared to it, leaders of rich countries, like Australia, England and US, take things in normal stride and even during state visits try to undertake journeys at minimum possible cost to the state. Since bureaucracy follows in their leader’s footprints, those countries have enough funds for catering to the development needs; while countries like Pakistan are not left with enough allocations for catering to the socio-economic needs of their people.
Till 1970, there was a strict control on food/snacks served in the President’s or Prime Minister’s House. Gohar Ayub, in his autobiography, writes that he had invariably to pay the bill for the food or snacks that were served to them whenever he and his family visited the Presidency to meet their parents. But, it is no longer the norm…. Now, the rules are exploited to an extent that during his tenure in office President Asif Ali Zardari hosted Walima reception for former prime minister Syed Yusuf Raza Gilani’s son, at the President’s House, at the state expense… The situation has reached a stage where now not only leaders, but also some top bureaucrats use state funds lavishly to entertain their guests.
Globally, there is a clear line of demarcation between personal and official expenses of leaders. This also remained the norm in Pakistan till 1970. But, in our version of present-day democracy, state minions no longer distinguish between personal and state funds. They do not hesitate to spend public money to satisfy their cravings for hunting and travel, or on entertaining friends. They attend college/university convocations of their progeny abroad, as well as their marriage ceremonies as if on official assignments and draw handsome amounts from the state treasury as TA and DA (travel and daily allowances) or for meeting unforeseen expenses. They use state money to perform Haj/Umra, buy sports/exercise gear, build polo grounds or shooting ranges.
In Pakistan, state minions keep clamouring for increase in salary, perks and privileges. On January 26, 2017, Punjab chief minister reportedly raised the salaries of chief secretary and inspector general of police by Rs400,000 and Rs375,000 per month respectively. The salary raise at this juncture raises a question in one’s mind: Are we getting closer to general elections? Is political hierarchy thinking to win elections with administration’s help?
Till 1958, state officials were not allowed many types of allowances or perks. The bureaucrats of all hues and colours, including federal secretaries, had to make their own arrangements for going to offices and also for meeting their social obligations. They did not feel shy even using bicycles for this purpose. But, these traditions started changing after the 1958 putsch.
ZAB-led government allowed free use of one vehicle to all secretaries and additional secretaries. In 1997, the Musharraf administration extended this facility to joint secretaries as well. In 2013, under car monetisation scheme, those entitled to car use were allowed to draw a hefty amount as car monetisation allowance. But, despite the liberal concession, misuse of official cars continues to grow, as disclosed by the auditor general before the Public Accounts Committee in 2011. He said that 14,000 of the 18,000 cars, in 296 departments of the government, were being misused.
Post-1971, the rulers had started granting liberal promotions and perks to bureaucracy in a bid to muster their cooperation which, they felt, was essential to prolong their rule or stifle opposition. With time, the bureaucracy’s craving for favours -- promotions, plots and choicest postings -- increased tremendously; while weak leaders started fulfilling the wishes of top mandarins. Now, some bureaucrats can get dozens of plots, extension in service for indefinite period and prized postings post-retirement.
Here is another example of extravaganza and misuse of state funds: over Rs100 million were spent, in 2002, out of a foreign loan secured for the drought-stricken people, by Planning Commission Baboos on office décor, or purchase of cars, air-conditioners, mobile telephones and payment of their bills.
One should not be surprised if during the first eight years of General Musharraf’s rule, Pakistan’s administrative expenditure jumped by about 400 billion rupees. While casting a glance at the administrative expenses during those days, one notices that Musharraf went to the US, chartering a special aircraft, to be present at the launching of his book "In the Line of Fire." The state bore all expenses, including of a retinue of over 40 persons; while the royalty went to Musharraf’s pocket.
The PM’s discretionary development fund had swelled to a whopping Rs42 billion under ex-PM Raja Pervaiz Ashraf. He doled out funds, meant for MNAs development schemes, to favourites, including 166 non-elected notables.
During the last regime, the Interior Ministry committed irregularities in billions and destroyed its evidence. It used the counter-terrorism fund (CTF) for globe-trotting, buying gold for gifts, dining at five-star hotels and obliging loyalists, including interior minister’s senior private secretary and secretary interior’s staffer. Auditor General spotted 37 irregularities worth two billion rupees, including Rs500 million from CTF allocated for National Crisis Management Cell (NCMC). Out of CTF, an amount of Rs40.78 million was spent on former interior minister’s international travelling, without getting prime minister’s approval. Furthermore, Rs616 million pertaining to NADRA Arms Licence Revalidation Project was deposited into NCMC account for arbitrary use.
One of NADRA’s former chairman claimed Rs6.3 million, in one year, over and above his pay and perks. He bought medicines worth Rs4.5 million and spent Rs2 million on dry fruits served to guests, according to the daily Nation (November 26, 2015).
The Workers Welfare Fund (WWF) is meant for industrial labourers and their families. However, its custodians have been using it for their own ‘welfare’ till the end of the previous administration. Raised with contributions from industrial establishment and workers, since May 2011, the government officials working in WWF withdrew from it Rs226.3 millionin the shape of monthly allowances -- Rs50,000 for grade-20 officers, Rs40,000 for grade-19 officers, Rs30,000 for grade-18 officers and Rs15,000 for grade-17 officers.
Since such corrupt practices figure amongst major ills negatively affecting the country’s development and business environment, it is time to make them public and also re-examine them judiciously so as to withdraw unnecessary perks and privileges and use the savings for the country’s development or bolstering-up its national defence.