Thursday, September 2, 2010

Pakistan - Diplomatic Corruption

Official given £6,000 to join golf club

By Khawar Ghumman 
Wednesday, 01 Sep, 2010

ISLAMABAD: The Public Accounts Committee of the National Assembly was informed on Tuesday that a bureaucrat posted at the country’s consulate general in Manchester had used official funds to secure the membership of a local golf club in 2007. 

The membership cost the public exchequer 6,000 pounds. 

Mr Hamid (his full name was not mentioned at the meeting) not only managed to win the post of commercial secretary, but also got approval for his club membership from then commerce minister Humayun Akhtar Khan whom he had earlier served as staff officer. 

Documentary evidence placed before the PAC by the audit department revealed that the club membership fee had been paid out of the Export Market Development Fund (EMDF) primarily meant to finance projects and activities aimed at promotion of exports. 

Commerce Secretary Zafar Mahmood opposed recovery of the amount from the official, although he conceded that using government funds to secure membership of a golf club was unprecedented. “He is a good officer and I don’t think he would be able to pay this amount,” he said. 

The secretary’s statement appeared to be in contradiction of the stance he had taken at a departmental accounts committee meeting in May when he said the amount should be recovered. 

Mr Hamid is about to complete his three-year term in Manchester. 

MNA Yasmin Rehman, who was presiding over the meeting in the absence of PAC chairman Chaudhry Nisar Ali Khan, asked the secretary to make the recovery as soon as possible. 

Khwaja Asif of the PML-N said: “The money should be recovered from the minister who endorsed the expenditure.” 

Members of the committee unanimously called for recovering the amount. 

During scrutiny of the accounts of the commerce ministry of 2008-9, audit officials also discussed wasteful expenditures of around Rs50 million by the finance ministry in 2007-8 on conducting several studies for promoting exports. They said the studies had been conducted in a highly suspicious manner; open bidding had not been held for selecting consultant firms and the then commerce secretary had made payments in contravention of his financial powers. 

Mr Zafar Mahmood said the expenditures had been approved by the then commerce secretary, Tanvir Ali Agha, who is currently the Auditor General of Pakistan. 

The PAC said the ministry should hold another meeting of the departmental accounts committee to determine whether the objectives of the studies had been achieved. 

Another case of waste discussed at the meeting was an unauthorised expenditure of Rs2.406 million on mobile phones calls. The chief executive of the Trade Development Authority of Pakistan exceeded his approved ceiling. Most of the calls took place during foreign visits by the official. The committee ordered recovery of the amount. 

When contacted, Mr Humayun Khan confirmed Mr Hamid’s foreign posting during his stint as commerce minister. “Yes, I also approved payment of 6,000 pounds for his golf club membership fee and that was absolutely within my purview,” Mr Khan said in reply to a question. 

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