PUBLIC ACCOUNTS COMMITTEE
One of the tools that legislature can use to further enhance oversight of the financial operations of Government is a specialized Committee. In the Westminster model of democracy the committee is known as the Public Accounts Committee (PAC). It is the Audit Committee of Parliament and as such is the core institution of public financial accountability established by Federal and Provincial Government to examine the accounts of Governments and their agencies. The Committee on Public Accounts enjoys the place of pride in our Committee System as this Committee is one of the tools that a legislature can use to further enhance oversight of the financial operation of Government.
2. The responsibilities of the PACs cover the area of oversight traditionally referred to as fiscal audits. Fiscal audits focus exclusively on the examination of Government expenditures to assure that funds appropriated by the parliament have been spent legally and as the parliament intended.
HISTORY OF PAC
3. The structure and functions of the PAC date back to the reforms initiated, by William Gladstone, when he was British Chancellor of the Exchequer in the mid-19th century. The first PAC was established in 1861 by a Resolution of the British House of Commons which is replicated in virtually all Commonwealth Countries and many non-Commonwealth Countries.
PAC IN BRITISH INDIA
4. The Committee on Public Accounts was first set up in 1921 in the wake of the Montague-Chelmsford Reforms. The Finance Member of the Executive Council was the Chairman of the Committee. The Secretariat assistance to the Committee was rendered by the Finance Department (now called the Ministry of Finance). The system continued up to 1949. This naturally restricted the free expression of views and criticism of the Executive.
PAC IN PAKISTAN
5. The PAC has been working continuously since 1948. The PAC has functioned even in the days when parliament remained dissolved. In each military regime, an ad-hoc PAC has been constituted. The first PAC was constituted on 20th May 1948. This Committee unfortunately never met. The present PAC is the 13th Parliamentary PAC, which was constituted on September, 19th, 2008 with the election of its Chairman, who is the leader of the opposition in the lower house. Thereafter, the following PACs were formed:-
|ame of the Committee
|Date of Constitution
|2nd PAC||14-04-1951||Mr. Ghayasuddin Pathan, MoS for Finance|
|3rd PAC||12-04-1954||Mr. Mohammad Ali, Finance Minister|
|4th PAC||13-04-1956||Syed Amjad Ali, Finance Minister|
|1st Ad-hoc PAC||03-03-1960||Mr. Mohammad Shoaib, Finance Minister|
|5th PAC||13-07-1965||Mr. Noor-ul-Amin, MNA|
|2nd Ad-hoc PAC||13-11-1965||– do –|
|3rd Ad-hoc PAC||12-06-1970||Mr. Muzaffar Ali Qizilbash, Finance Minister|
|6th PAC||18-08-1972|| i)Dr. Mubashir Hassan, Finance Minister
ii)Rana M. Hanif Khan, Finance Minister
|4th Ad-hoc PAC||25-03-1978||Mr. A.G.N. Kazi, Governor SBP|
|5th Ad-hoc PAC||25-08-1982||Mr. Ghulam Ishaq Khan|
|7th PAC||18-08-1985||Sahibzada M. Ali Shah, MNA|
|8th PAC||05-03-1989||Mr. Hakim Ali Zardari, MNA|
|9th PAC||16-05-1991||Mr. Hamza, MNA|
|10th PAC||28-08-1995||Rao M. Hashim Khan, MNA|
|11th PAC||12-05-1997||Mr. Hamza, MNA|
|6th Ad-hoc PAC||25-08-2000||Mr. H.U. Beg|
|12th PAC||03-11-2003||Malik Allah Yar Khan, MNA
(03 Years, 07 months, 04 days)
|13th PAC||19-09-2008||Chaudry Nisar Ali Khan|
PAC IN KHYBER PAKHTUNKHWA
6. Khyber Pakhtunkhwa has been a very unfortunate Province during British era, it was known as an unconstitutional land. In 1932 it was declared as Province and hence a separate Legislative Council came into being to run the affairs of Province. Under the Government of India Act 1935, enforced on 1st April, 1937, the legislative council was renamed as NWFP Legislative Assembly, Election for the NWFP Legislative Assembly were held in 1937. After creation of Pakistan in 1947 the then NWFP was retained as separate Province, parliamentary traditions were developing here, but unfortunately in 1955 all West Pakistan was declared as one Unit and NWFP was incorporated into it, hence it ceased to exist as a Provincial Assembly, so there was no question of PAC during that period.
7. In 1970 General Yahya Khan annulled one Unit and consequently four Provinces were restored, so the then NWFP again emerged as a Province with its own Provincial Assembly.
8. For the first time in history of elections were held for both Provincial and National Assemblies. The then NWFP Assembly took oath on 02/05/1972. However, there is no record of PAC available for that period. That Assembly was dissolved on 13/02/1977, after completion of its Constitutional tenure. New elections were held in 1977 but mean while General Zia-ul-Haq, imposed martial law and the Constitution of 1973, was held in abeyance.
1st PAC (Ad-hoc)
9. Pursuant to the proclamation of the fifth day of July, 1977, read with laws (continuance in force) order, 1977, the APAC was constituted vide Notification No.44/FD/Accounts/1972 (sub) dated 29th April, 1979 which comprised of the following:-
1. Mr. Justice Qaisar Khan, Chairman
Judge of the Supreme Court of
2. Mr. Abdul Rashid Khan, Member
Chief Administrator Auqaf (Rtd)
. 3. Mr. Abdul Hashim Khan, Member
Vice Chancellor (Rtd)..
4. Mr. Sikandar Khan, Member
Deputy Secretary Finance (Rtd).
5. Mr. Muhammad Afzal Khan Baroch, Member
Political Agent (Rtd).
6. Mr. Sajjad Ahmad,
Chartered Accountant. Member
7. Secretary Finance or his representative Member
10. The Committee met for the first time on 19th June, 1979 to lay down a procedure for the meetings to scrutinize and examine the accounts of the Government of NWFP for the financial year, 1970-71 and thereafter met for 79 working days and all accounts upto financial year, 1978-79 as received by the Committee, were finalized.
11. First Report of the Committee i.e. on the Appropriation Accounts, Finance Accounts, and the Audit Report on the Accounts of Govt. of NWFP for the financial years1970-71 to1978-79 was presented to the Governor, NWFP on 31st August, 1981 and was approved on 24th October, 1981.
12. The Committee then took up for consideration the Auditor General’s report on the accounts of Government of NWFP for the year 1979-80 discussed it in its 14 sittings held from 21-02-1982 to 03-04-1982, second Report of the Committee was presented to the Governor, NWFP and was approved on 13th June, 1982.
13. Third report of the Committee i.e. on, Finance Accounts, and the Audit Report on the Accounts of Govt. of NWFP for the financial years1980-81 & 1981-82 was discussed by the committee in 48 sitting and presented same to the Governor, on 18thMarch, 1985 and was approved on 20th March, 1985.
14. APAC was dissolved on 28/02/1985.
15. In 1985 general elections were held on non-party basis and the Assembly took oath on 12/03/1985. 2nd PAC was constituted on 01/07/1985. The following were the Members of the Committee:-
1. Raja Amanullah Khan, Speaker/Chairman.
2. Mr. Ahmad Hasan, Dy: Speaker/Dy; Chairman
3. Minister for Finance, Ex-officio Member
4. Syed Inayat Ali Shah Bacha, Member
5. Mr. Nazir Ahmad Shinwari, Member
6. Mr. Muhammad Yousaf Tanoli, Member
7. Mr. Bakht Jehan Khan Member
8. Haji Muhammad Yaqub Khan, Member
9. Sardar Haji Sanaullah Miankhel, Member
10. Malik Salahuddin Khan, Member
11. Sardar Haider Zaman Khan, Member
12. Mr. Muhammad Ayub Khan Tanoli, Member
13. Maj:Rtd:Mukhtar Ahmad Khan, Member
16. The Committee held three series of meetings comprising (37) sittings, from 24/08/1986 to 04/09/1986 at Frontier House, Abbottabad, from 10/11/1986 to 24/11/1986 at Provincial Assembly of NWFP, from 01/04/1987 to 16/04/1987 at Provincial Assembly of NWFP, from 20/07/1987 to 23/07/1987 at Frontier House, Abbottabad and from 12/12/1987 to 27/12/1987, respectively.
17. This Committee discussed the Audit Report and Commercial Accounts for the years 1981-82 and 1982-83. The Committee also discussed the and Appropriation Accounts for the years 1983-84 & Audit Report and Appropriation Accounts for the year 1984-85. The report was adopted by the Assembly on 31/06/1987.
18. This Committee remained in function up to 29/05/1988 and ceased to work due to the dissolution of the Assembly.
19. Next General Elections, were held on 19/11/1988 and the Assembly took oath on 30/11/1988. 3rd PAC was constituted on 26/07/1989 vide Notification No.PA/NWFP/Legis-II/8392, in pursuance of the provisions of rule 193 of the Provincial Assembly of North-West Frontier Province Procedure and Conduct of Business Rules, 1988. Following the members:-
1. Syed Masood Kausar, Speaker/Chairman
2. Mr. Abdul Akbar Khan Dy: Speaker/Dy: Chairman
3. Minister for Finance, Ex-officio Member
4. Haji Muhammad Yaqub Khan, Member
5. Sardar Haider Zaman Khan, Member
6. Mr. Baz Muhammad Khan, Member
7. Sardar Mehtab Ahmad Khan, Member
8. Mr. Muhammad Azam Afridi, Member
9. Mr. Bakht Jehan Khan, Member
10. Mr. Jehangir Khan, Member
11. Malik Fida Muhammad Khan, Member
20. It partially discussed the Audit Report for the year 1985-86, but the report could not be placed before the Assembly as the Assembly was dissolved on 06/08/1990.
21. Next Elections were held on 27/10/1990 and the Assembly took oath on 05/11/1990. 4th Public Accounts Committee was constituted on 02/12/1990, vide Notification No.PA/NWFP/Legis-II/90/18224 under rule 193 of the Provincial Assembly of NWFP, Procedure and Conduct of Business Rules, 1988. Following were the Members:-
1. Mr. Habibullah Khan Tareen, Speaker/Chairman
2. Arbab Saifur Rehman, Dy: Speaker/Dy: Chairman
3. Minister for Finance., Ex-officio Member
4. Haji Muhammad Yaqoob Khan, Member
5. Mr. Baz Muhammad Khan, Member
6. Sahibzada Muhammad Sabir Shah Member
7. Mr. Abdur Rehman Khan, Member
8. Mr. Bakht Jehan Khan, Member
9. Mr. Muhammad Tariq Khan, Member
10. Syed Masood Kausar, Member
11. Haji Abdul Raziq Khan, Member
12. Shahzada Mohd: Gustasip Khan, Member
13. Mr. Zareen Gul, Member
14. Arbab Muhammad Ayub Jan, Member
15. Mr. Hidayatullah Khan Afridi, Member
16. Haji Muhammad Adeel, Member
22. The Committee took-up for discussion the Report for the year 1985-86, which was left incomplete by the earlier PAC. However, it also could not finalize the above report and once again the report could not be placed before the Assembly as Assembly was dissolved on 30/05/1993 and PAC ceased to exist.
23. General Elections were held on 09/10/1993 and the Assembly took oath on 18/10/1993, the 5th PAC was constituted on 04/08/1994 vide Notification No.PA/NWFP/PAC/94/13360 under rule 193 of the Provincial Assembly of NWFP, Procedure and Conduct of Business Rules, 1988. Following were the Members:-
1. Mr. Abdul Akbar Khan, Speaker/Chairman
2. Syed Allauddin, Dy: Speaker/Dy: Chairman
3. Minister for Finance, Ex-officio Member
4. Mr. Iqbal Hussain Khattak, Member
5. Mr. Salim Saifullah Khan , Member
6. Mr. Ghani Muhammad Khan, Member
7. Mr. Jehangir Khan, Member
8. Mr. Anwar Kamal Khan, Member
9. Mr. Pir Muhammad Khan, Member
10. Haji Muhammad Adeel, Member
11. Dr. Inayat ul Haq, Member
24. The Public Accounts Committee held series of meetings at Kalam, Kund and Peshawar respectively. The Committee considered the Audit Report and the Appropriation Accounts for the said year within 30 working days w.e.f. 16/08/1994 to 11/10/1994.
25. This Committee partially discussed the Auditor General Report for the year 1989-90 which was adopted by the House on 25th October,1994. The Committee also discussed partially the Audit Report and Appropriation accounts for the year 1991-92, but could not finalize the whole report due to dissolution of the Assembly on 12/11/1996, hence PAC ceased to work.
26. Elections were held on 03/02/1997 and new Assembly was elected the Assembly took oath on 19/02/1997, PAC was constituted on 8th May, 1997 vide Notification No.PA/NWFP/Legis-II/8641, in pursuance of the provision of rule 193 of the Provincial Assembly of the North West Frontier Province Procedure and Conduct of Business Rules 1988, with the following Members:-
1. Mr. Hidayatullah Khan Chamkani, Speaker/Chairman
2. Minister for Finance, Ex-officio Member
3. Syed Muhammad Sabir Shah, Member
4. Mr. Ali Afzal Khan Jadoon, Member
5. Mian Gul Asfandyar Amir zeb, Member
6. Haji Muhammad Adeel, Member
7. Mr. Muhammad Bashir (Umerzai), Member
8. Mian Ifthikhar Hussain, Member
9. Mr. Najmuddin Khan, Member
10. Nawabzada Mohsin Ali Khan, Member
11. Mr. Pir Muhammad Khan, Member
27. Mr. Ali Afzal Khan Jadoon, was replaced by Syed Manzoor Hussain and Mian Gul Asfindiar Amirzeb was replaced by Mr. Muhammad Ayub Khan Afridi and Mr. Pir Muhammad Khan was replaced by Mr. Farid Khan Toofan, due to their induction into the Provincial Cabinet.
28. A series of meeting of the Committee was held from 22/07/1997 to 23/08/1997 at Frontier House, Abbottabad, spinning over (26) working days, the longest session in the history of PAC, in which the report in question was scrutinized and discussed thread bare. The Reports was adopted by the House on 21st November, 1997
29. A series of meetings of PAC were held from 11/08/1998 to 17/09/1998 at Peshawar and Swat, spinning over (22) working days to discuss the Audit Report for the year 1995-96. The Report was adopted on 2nd July 1999.
7th PAC (Ad-hoc)
30. Consequent upon the suspension/dissolution of the Provincial Assembly of NWFP and in view of proclamation order No. 2-10/99-Min-1 dated 14th October, 1999, 6th PAC ceased to function. In order to carry on the business of accountability and securitization of Auditor General Reports, the Governor NWFP, promulgated the NWFP Adhoc Public Accounts Committee, Composition and Functions Ordinance, 2000.
31. Pursuant to that Ordinance, the APAC was constituted vide Notification No. SO (PAC)/FD/4-1/99 (APAC) dated 20th 0ctober, 2000 which comprised of the following:-
1 Justice (Rtd) Abdul Karim Khan Kundi, Chairman
2. Mr. Muhammad Amin Khan Member
3. Syed Tanzeem-ul-Haq Halimi Member
4. Syed Nasir Hussain, Member
5. Professor (Rtd) Abdul Hamid Member
6. Dr. Sardar Ali, Member
7. Dr. Alaf Khan, Member
32. The committee could not start its function due to litigation in Court of Law.
8th PAC (Ad-hoc)
33. Pursuant to NWFP Ad-hoc Public Accounts Committee, composition Functions Ordinance, 2000. 8th APAC was constituted vide Notification No.SO(PAC)/FD/1-5/2002 (APAC) Vol: I dated 8th June, 2002. Following were the members:-
1. Mr. Naeemullah Khan, Chairman
2. Mr. Karim Khan Marwat, Member
3. Mr. Nasrullah Jan, Member
4. Mr. Muhammad Afzal Khan, Member
5. Syed Nasir Hussain, Member
6. Mr. Mohib-ur-Rehman Kayani, Member
7. Dr. Nasir-ud-Din Azam Khan, Member
34. The Committee in its first introductory meeting held on 15th of July 2002, decided to take up Report of Auditor General of for the year 1997-98, being the latest one. It finalized Report on Appropriation Accounts, Finance Accounts and Audit Report on Revenue Receipts of Government of NWFP in its Twenty Five sitting and presented the same to the Governor on 8th of October, 2002 for his approval. The same was approved by the Provincial Cabinet in its meeting held on 11th November, 2002. Thereafter, the Committee in its 18 days sitting, available with it, examined the Audit Report in respect of Local Government, Board of Revenue, Higher Education, Industries and Food Departments. Last meeting of the APAC was held on 27th November, 2002. The Committee could not completely discuss the Audit Report as it was dissolved on 23rd November, 2002 in view of the NWFP Adhoc Public Accounts Committee (Constitution and Function) (Repeal) Ordinance, 2002.
35. Election were held on 10/10/2002, members took oath on 25/11/2002. 9th PAC was constituted on 28th of January 2003 vide Notification No.PA/NWFP/PAC/2003/3069, under rule 193 of the Provincial Assembly of NWFP Procedure and Conduct of Business Rules, 1988 consisting of the following:-
1. Mr. Bakht Jehan Khan, Chairman
2. Minister for Finance Ex-officio Member
3. Mr Ikramullah Shahid Member
4. Mr. Abdul Akbar Khan, MPA Member
5. Mr. Anwar Kamal Khan, MPA Member
6. Mr. Pir Muhammad Khan, MPA Member
7. Shahzada Muhammad Gustasip Khan, MPA Member
8. Mr. Shah Raz Khan, MPA Member
9. Mr. Khalil Abbas, MPA Member
10. Mr. Jamshed Khan, MPA Member
11. Mr. Khalid Waqar, MPA Member
36. After the induction of Mr. Shah Raz Khan, Member of PAC in the Provincial Cabinet, he was replaced by Mr. Muzaffar Said, MPA as Member of PAC.
37. Just after Budget Session, the Committee started its functions and took-up for consideration the un-finished work for the year 1997-98. The PAC in its six sessions spanning over 74 days completed the left-over work of the defunct APAC. It examined thread bare the Audit Paras in respect of the following Departments:-
1. Works and Services
2. Irrigation & Power.
3. Schools & Literacy
4. Agriculture, Livestock & Cooperation.
6. Environment. 7. Social Welfare & Women Development.
8. Home & Tribal Affairs.
9. Population Welfare.
38. In this lengthy process, the Committee disposed of 1375 Audit Paras and its report was adopted by the House on 28thJune, 2005. It also discussed Audit Report and a portion of Appropriation Accounts for the year 2001-2002. Report was adopted by the House on 29th June, 2007 and completely discussed the Auditor General’s Report on the Accounts of Govt. of NWFP for the year 2002-2003. Repot was prepared but could not be placed before the House due to dissolution of Assembly on 10/10/2007.
39. Elections were held on 18/02/2008 member took oath on 28/03/2008, 10th PAC was constituted on 20/08/2008 vide Notification No.PA/NWFP/PAC/2008/18709, under rule 193 of the Provincial Assembly of NWFP, Procedure and Conduct of Business Rules, 1988 consisting of the following:-
1. Mr. Speaker, Chairman
2. Minister for Finance Ex-officio Member
3. Mr Alam Zeb, MPA Member
4. Mr. Abdul Akbar Khan, MPA Member
5. Mr. Mukhtiar Ali Member
6. Syed Muhammad Sabir Shah, MPA Member
7. Mr. Muhammad Zamin Khan, MPA Member
8. Syed Muhammad Ali Shah Bacha, MPA Member
9. Mr. Ziyad Akram Durrani, MPA Member
10. Mr. Fazal Shakoor Khan, MPA Member
11. Mr. Malik Tamash Khan, MPA Member
40. Due to sad demise of Late Alam Zeb, MPA/Member of PAC, he was replaced by Mr. Saqib Ullah Khan Chamkani, MPA as Member of PAC.
41. The Committee started its functions and firstly laid the report for the year 2002-03 which was discussed by the earlier PAC , the report was adopted by the House on 21/01/2009. The Committee then took-up for consideration the Audit Report, Appropriation Accounts, Finance Accounts, Audit Report on Revenue Receipts, Commercial Accounts for year 2003-04 and 2004-05 and the Audit report for the year 2005-06 discussed it completely. The report for the year 2003-04 was finalized and adopted by the House on 30/09/2009 and preparation of the report for the year 2004-005 and 2005-06 was in progress till finalization of this booklet.