The Auditor General of Pakistan (AGP) has reported that the Securities and Exchange Commission of Pakistan (SECP) paid over Rs267 million in salaries, perks, and allowances to its chairman and commissioners without obtaining legally required approval from the Finance Division, in violation of the Rules of Business and a Supreme Court ruling, The News reported.
The 2023-24 audit identifies two main categories of unauthorised expenditure: Rs156.6 million for basic pay, allowances, and other perks, and Rs110.9 million for a “Rest and Recreation Allowance” to SECP top management and employees. The audit described these disbursements as irregular and lacking legal validity.
The report cites a Finance Division directive issued on January 23, 2024, stating that all pay, allowances, and revisions for government employees, including those in autonomous and semi-autonomous bodies, require prior approval from the Finance Division.
It also references Rule 12(1)(h) of the Rules of Business, 1973, and a 2016 Supreme Court judgment confirming that any order bypassing these rules is legally invalid.
SECP management defended the payments, noting that under Section 5 of the SECP Act, 1997, the policy board determines remuneration for the chairman and commissioners. The commission argued that its internal pay scales do not fall under the Finance Division’s directive.
According to the news report, the AGP rejected this reasoning, asserting that SECP’s autonomous status does not exempt it from compliance with the Rules of Business. The audit recommended stopping the unauthorised payments immediately and submitting the salary structure and perks for retroactive approval by the Finance Division to regularise the expenditures.
The report also noted that SECP was invited to discuss these irregularities in Departmental Account Committee meetings on January 14 and February 6, 2025, but did not respond.
The findings have raised concerns about governance and financial discipline at Pakistan’s main corporate regulator.
