ISLAMABAD: A
powerful District management Group (DMG) officer sacked twice by the
Punjab government for dismal performance and negligence is again in hot
water for massive irregularities in multi-billion Benazir Income Support
Programme (BISP), ‘The News’ has learnt.
According to
documents available with ‘The News,’ the new BISP Secretary Rab Nawaz
made payment of Rs2.6 million to an NGO owned by a US-national without
approval of the scrutiny committee just a few days after assuming his
post.
The powerful secretary has also immediately removed
an honest internal auditor who had unearthed the corruption of Rs150
million in award of a consultancy contract worth Rs2.63 billion.
When
contacted, BISP Chairman Enver Baig confirmed that due process was not
followed by the secretary in releasing the payment to the NGO. “It has
come to my notice, and I will take necessary action over the issue,”
Baig added.
Nawaz, a BPS-20 officer, has already been
served notices by BISP Chairman Enver Baig, but he denies both
allegations saying that he took these actions on merit.But the past
record of the new BISP secretary is far from being ideal. He was removed
from the post of the Punjab Irrigation and Power Secretary after he was
found guilty of negligence during devastating floods of 2010 by a
judicial commission, constituted by Punjab Chief Minister Shahbaz
Sharif.
The commission has not only recommended immediate
removal of Rab Nawaz from the post but also asked for inquiry against
him after he was found responsible for loss of hundreds of lives and of
property worth tens of billions of rupees.
The report of
the commission concluded that the officer had failed to meet the
monumental challenge of two floods in the River Indus during the 2010
monsoon, causing widespread devastation. But the officer of the powerful
District Management Group again managed to get the prize posting in the
province as secretary energy. However, he could not satisfy the
fast-paced chief minister with his performance in the energy sector and
was subsequently removed for failing to initiate any new power project
in the province.
But sources said this past record could
not deter a powerful federal minister from orchestrating his posting as
BISP secretary last month. Immediately after his posting, Mr Nawaz
released a payment of Rs2.6 million to a US-based NGO which is locally
run by two retired military officers. The BISP chairman took serious
notice of the irregularity and issued a notice to the secretary to
explain as to why the agreed procedure was not followed.
“Chairman
has taken serious view of the situation especially when this was
emphasised by the BISP secretary during weekly meeting that all
outstanding liabilities are to be submitted to secretary after the
scrutiny committee meeting,” says the letter No2(9)/DS/HR(CP)BISP-2013,
dated April 2, 2014. Sources said the second action taken by the
secretary was to remove Muhammad Saleem, Director Internal Audit at
BISP, who pointed out massive irregularities in award of a multi-billion
contract to a service provider.
In his audit report,
titled ‘Internal Audit of BISP Donor Funded Projects for the Financial
Year 2011-12 and 2012-13’, Saleem disclosed that some BISP officials
gave undue favour to a consultant causing a loss of Rs149.84 million to
the programme.
The report says BISP hired consultancy
services to the tune of Rs2,630,889,571 for undertaking various
activities like Poverty Scorecard Survey, Impact Evaluation, Spot Check
and baseline Survey in January 2011. “It has been observed that instead
of deducting income tax from the total cost of the contract, additional
provision has been made for income tax amounting to Rs149,845,152,” says
the report, a copy of which is available with ‘The News’.
“The
consultant submitted financial proposal exclusive of taxes which means
indirect taxes will be added to the cost, but the BISP management added
value of direct tax i.e. income tax which is against the provisions of
Section 152 and 153 of the Income Tax Ordinance 2001,” says the report.
Instead
of being rewarded for his work, the officer was transferred by the BISP
secretary. This is despite the fact that Internal Auditor is supposed
to directly report to the chairman and not to the secretary. The
influence of the DMG officer is evident from the fact that he managed to
get posting of a Grade-21 officer from BISP to Inter-Provincial
Coordination (IPC), reversed within 7 days of his transfer.
“The
Establishment Division’s notification dated March 27, 2014, regarding
transfer of Dr Mukhtar Ahmad, a BPS-21 officer of the Secretariat Group
from the post of BISP director general and his posting as IPC Division’s
senior joint secretary is hereby withdrawn, ab initio,” says a
notification issued on April 3, 2014.
Sources said the
BISP chairman was not happy with the performance of Dr Mukhtar, but the
secretary managed to bring back his blue-eyed DG in the programme within
a week. When contacted for his version, BISP Secretary Rab Nawaz said
that the payment of Rs2.7 million was released on merit. He said the
service provider had submitted his bill six months ago but the scrutiny
committee never met nor examined his case.
“So I asked the
service provider to hold a presentation in the presence of the
committee members and when no one objected to the performance of the
said service provider I directed them to release the payment,” he said.
Referring
to the transfer of the internal auditor, Nawaz said the officer had
completed his five-year tenure so he was transferred. He also claimed
that there were certain audit paras against him.
The
secretary added that he was asked to work in BISP on the basis of his
past experience with poverty reduction programmes in Pakistan and abroad
and with foreign funding agencies.“I have worked with Asian Development
Bank, IFAD and UN agencies on poverty alleviation so the government
decided to appoint me in BISP,” he said.
When asked about
reversal of the transfer of Dr Mukhtar Ahmad, done on his own request,
within seven days, the secretary said Mr Ahmad had worked with BISP for
four years so he had institutional memory and as a new incumbent he
needed his help to get full understanding of the programme.
“During
first week of my arrival in BISP, Dr Mukhtar was transferred and there
was no one to brief me about important issues so I requested the
Establishment Division to allow him to stay back for some time so that I
can better understand the programme during my initial period,” he said.
When
asked about the reports that he was sacked twice in Punjab over poor
performance, Mr Nawaz denied these reports and said that it was a matter
of official record if someone would bother to check. And as for his
integrity and repute was concerned, that could easily be verified from
anyone in the offices he previously served.
He was asked
about the reports that the Flood Enquiry Tribunal had held him
responsible for poor management of the flood, he replied that Punjab
government had not agreed with commission’s findings and therefore, no
action was initiated against him.
About the institutional
issues in BISP, the secretary said that no proper rules had been framed
in BISP to define the roles and guide the work of various offices. Once
the rules were framed, there would be no issue in proper working of
BISP, he said.