REFERENCE / COMPLAINT NO. V
Reference dated
22-5-2004 – Billion
Rs Irregularities in Defence Budget
To:
The
Chairman
National Accountability Bureau
President’s Secretariat
Islamabad.
Pakistan Peoples
Party ...................... COMPLAINANT
V/s
1.
Controller
Military Accounts
2.
Garrison
Engineer (Army Services)
3.
DW&CE (Air and
DW&CE) (Army)
4.
Minster of
Defence ......... RESPONDENTS
Subject
: Complaint In terms of Section 5
and 18 (b) (ii) 0F THE NATIONAL ACCOUNTABILITY BUREAU (NAB) ORDINANCE 1999
against the Public Office Holder for punishment under Section 10 of NAB
Ordinance REGARDING financial and administrative irregularities in defence
budget 2001 to 2002
1. The
respondents in this complaint do fall within the ambit of NAB Ordinance 1999 for
the purposes of investigation trial and punishment.
2. The
respondents are reportedly guilty of corruption and corrupt practices as defined
in Section 9 of the Ordinance and as such are subject to punishment under
Section 10 of the Ordinance based upon the following facts and grounds:
Facts and Grounds:
-
According to a news item published in THE NEWS dated March 23, 2004
(copy enclosed), a serious case of abuse of power resulting into massive loss
to the government exchequer as pointed out by the Auditor General of Pakistan.
-
In the said
news item, the irregularities committed by the respondents have been pointed
out which are being incorporated as under:
According to the AGP, these
irregularities cover only the accounts of defence services, controllers military
accounts, special audit report of GE (Army services), special audit of DW&CE
(Air and DW&CE(Army) and cantonment boards.
Many other audit reports of the federal ministries were also tabled in the House
but their financial impact is less than that of the audit containing the details
of irregularities in the military.
Over three dozen government owned public enterprises were found involved in
irregular spending of Rs 17 billion during the year 2001-2002. According to the
AGP, the audit report on the accounts of defence services has topped the list of
irregularities as over Rs 29 billion were found misused, Rs 27 billion,
recoverable, violation of rules, Rs 761 million, mismanagement, Rs 165 million,
violation of propriety Rs 8.5 million, recoverable Rs 213 million, overpayments
Rs 5.9 million, irregular expenditures Rs 43 million, unauthorized expenditure
Rs 10.2 million, extra and avoidable expenditure Rs 2.6milloiin and others Rs
1.2million.
The special audit report on GE army services Rawalpindi covers irregularities.
Mismanagement Rs 790 million, misuse Rs 2.9milion, recoverable Rs 109million,
violation of rules Rs 32million and others Rs 40milloin. The audit report on the
accounts of controller of military accounts covers the irregularities of Rs 6
billion on account of irregular expenditure, mismanagement Rs 56 million and
unauthorised payments Rs 228 million.
The audit report on accounts of defence services (DP division) covers the
irregularities of Rs 858 million, recoverable Rs 18million, negligence Rs 2.3
million, unauthorised/irregular expenditure Rs 1.4 million, violation of rules,
Rs 217million and others Rs 72million.
Special audit report on the projects of DW&CE (air) DW and CE (Army) covers
irregularities of Rs 132 million, violation of rules Rs 16.358 million,
overpayments Rs1.4 million, recoverable Rs 4.8 million, others Rs 4.4 million.
Special audit report on the accounts of cantonment board covers the
irregularities of Rs1.9 billion on account of mismanagement, recoverable Rs1.6
billion, violation of rules Rs34milloin and others Rs 7.7 million.
Conclusion:
Based
on the above facts and grounds respondents have shown willful indulgence in
corrupt practices under Section 9 of the Ordinance. Such persons are subject to
punishment under Section 10 of the Ordinance.
As such
the Chairman of the NAB is called upon to initiate investigation in connection
with the matters set out herein above and further proceed to file a reference
against respondents for violating the provisions of Section 9 of the Ordinance
punishable under Section 10 of the Ordinance in competent court of law and
proceed against those concerned for violating Section 9 of the Ordinance.
Complainant
Pakistan
Peoples Party
Through:
Amir
Fida Paracha Advocate
Islamabad Dated : 22
May 2004
The Reference / Complaint is based on the source incorporated as under :
Army audit reports tabled in
NA
By our
correspondent
The
News, March
23, 2004
ISLAMABAD: Five audit reports of Pakistan Army containing details of "financial
and administrative irregularities to tune of Rs 40 billion" in defence budget in
2001-2002, were tabled in National Assembly here Monday.
The Auditor General of Pakistan in his five reports has identified many "common
lapses and negligence" on the part of Army, such as "prevalent practice of
violation of rules, procedures, regulations, weak internal financial control
over spending."
According to the AGP, these irregularities cover only the accounts of defence
services, controllers military accounts, special audit report of GE (Army
services), special audit of DW&CE (Air and DW&CE(Army) and cantonment boards.
Many other audit reports of the federal ministries were also tabled in the House
but their financial impact is less than that of the audit containing the details
of irregularities in the military.
Over three dozen government owned public enterprises were found involved in
irregular spending of Rs 17 billion during the year 2001-2002. According to the
AGP, the audit report on the accounts of defence services has topped the list of
irregularities as over Rs 29 billion were found misused, Rs 27 billion,
recoverable, violation of rules, Rs 761 million, mismanagement, Rs 165 million,
violation of propriety Rs 8.5 million, recoverable Rs 213 million, overpayments
Rs 5.9 million, irregular expenditures Rs 43 million, unauthorized expenditure
Rs 10.2 million, extra and avoidable expenditure Rs 2.6milloiin and others Rs
1.2million.
The special audit report on GE army services Rawalpindi covers irregularities.
Mismanagement Rs 790 million, misuse Rs 2.9milion, recoverable Rs 109million,
violation of rules Rs 32million and others Rs 40milloin. The audit report on the
accounts of controller of military accounts covers the irregularities of Rs 6
billion on account of irregular expenditure, mismanagement Rs 56 million and
unauthorised payments Rs 228 million.
The audit report on accounts of defence services (DP division) covers the
irregularities of Rs 858 million, recoverable Rs 18million, negligence Rs 2.3
million, unauthorised/irregular expenditure Rs 1.4 million, violation of rules,
Rs 217million and others Rs 72million.
Special audit report on the projects of DW&CE (air) DW and CE (Army) covers
irregularities of Rs 132 million, violation of rules Rs 16.358 million,
overpayments Rs1.4 million, recoverable Rs 4.8 million, others Rs 4.4 million.
Special audit report on the accounts of cantonment board covers the
irregularities of Rs1.9 billion on account of mismanagement, recoverable Rs1.6
billion, violation of rules Rs34milloin and others Rs 7.7 million.
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