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President found overspending grants

Posted on: Sat June 19, 2010

ISLAMABAD: Auditors have found President Asif Ali Zardari exceeding the limits of his discretionary grant allowance available as the head of the state, documents available with The News reveal.

During the year 2008-09, the president used Rs 2,000,000 more than the sanctioned discretionary grant. Each year, the president is allowed to use Rs 1,000,000 as his discretionary grant.

The auditors even declared the reply of President s Secretariat as not tenable. The President s Secretariat had replied to the auditors that as per Second Schedule of President s Privileges Act 1975, the amount of discretionary grant shall be replenished on its utilisation as a revolving fund. The Finance Division scrutinised the case and granted supplementary grant of Rs 2,000,000 to meet the expenditure.

The audit report of the President s Secretariat says: As per provision of section 7 (a) of the president s salary allowances and privileges Act 1975 (as amended from time to time). There shall be paid in each year to the president an allowance for expenses connected with purposes specified in the second schedule not exceeding the maximum amounts specified in that schedule. As per second schedule, the maximum yearly amount specified for expenditure in respect of Discretionary Grant is Rs 1,000,000.

The Audit observed that expenditure amounting Rs 3 million was incurred during the year 2008-2009 on account of discretionary grant in the President s Secretariat (Personal), which was Rs 2,000,000 more than maximum yearly allowed expenditure. Therefore, the excess amount incurred was unauthorised and needs to be condoned from the competent forum.

The Presidency replied that as per the Second Schedule of President s Privileges Act 1975, the amount of discretionary grant shall be replenished on its utilisation as a revolving fund. The Finance Division scrutinised the case and granted supplementary grant of Rs 2 million to meet the expenditure. The reply was not tenable as the yearly allowable expenditure in respect of the discretionary grant of the President as given in the President Privileges Act 1975, is Rs 1,000,000.

Moreover, the secretariat has not produced any document about Rs 2.8 million, which were used on purchase of POL for automobiles. As per the POL register of the vehicles of President s Secretariat (Personal), and statement showing vehicle-wise quantity consumed/purchased during the year 2008-09, the cost of POL comes to Rs 8,199,000. The expenditure statement duly reconciled with the office of the AGPR the expenditure on POL for the same year was Rs 10,999,002. Thus there is difference of Rs 2.8 million between the expenditure on POL and entries in the relevant record of the Secretariat.

 It was replied that the difference was due to some pending payments of POL for the last year, which were made during the financial year 2008-09. The reply was not supported with documentary evidence, therefore, audit proposed that matter should be investigated at appropriate level , says the audit report.

Courtesy : The News