PAC orders inquiry into additional expenses and irregularities in planning division, NLC projects

The Public Accounts Committee (PAC) directed the Secretary of the Planning Division to conduct an inquiry into additional expenditures and submit a report within a month. PAC Chairman Junaid Akbar emphasized that the Planning Division should set an example for other ministries, Dawn reported.

PAC member Sanaullah Mastikhel expressed concerns about the withholding of development funds from lawmakers who did not compromise their integrity. 

The committee also examined a case regarding the lapse of Rs220 million from the Planning Division’s development budget, originally earmarked for an event that was canceled due to the Prime Minister’s absence. 

PAC members questioned the allocation of such a large sum for a single event, to which Planning Secretary Awais Manzur Sumra clarified that the funds were intended for a social sector project meant to be inaugurated by the Prime Minister.

MNAs Riaz Fatyana and Sanaullah Mastikhel raised objections over the poor planning within the Ministry, especially given that nearly 45% of the country’s population lives below the poverty line.

The PAC also examined irregularities in the disbursement of Rs8.69 billion allocated for the census, revealing unaccounted leftover funds. The committee ordered the collection of complete financial records from the remaining districts. Additionally, an audit found that 219 of the 126,000 tablets purchased for the census were untraceable. The Planning Secretary confirmed that only 24 devices remained missing, and the PAC decided to close the audit on that matter.

In a separate session, the committee reviewed an audit report on the National Logistics Corporation (NLC), focusing on Rs3.2 billion in irregularities related to steel procurement. Audit officials reported that steel, initially contracted at Rs108,000 per tonne, was later procured at Rs298,000 per tonne. 

NLC officials defended the revised rates, stating they were board-approved and aligned with market trends. The committee also flagged procedural violations in extending a one-year contract with Faizan Steel to three years instead of two six-month extensions.

The committee also reviewed the Bara Kahu Bypass project, which suffered a Rs2.47 billion loss due to contractual flaws. Initially estimated at Rs6.51 billion, the project ballooned to Rs8.82 billion. 

The Capital Development Authority (CDA) has yet to approve the additional cost, with NLC attributing the overrun to court stay orders and design changes. PAC members condemned NLC’s violation of Public Procurement Regulatory Authority (PPRA) rules and criticized its practice of awarding development projects without tendering at inflated costs, often 120% higher than standard estimates.