A special audit report on the Higher Education Commission (HEC) has revealed that the affairs of the commission are not being run as transparently as generally viewed. The findings get added significance as these are contrary to the reputation enjoyed by the HEC which enabled its high-ups in saving the commission from devolution under 18th Amendment after a hectic controversial debate in the country. The audit report points out grey areas besides revealing serious financial irregularities in the accounts of the commission as well as various universities of the country. The tall claims of efficiency and transparency were made meaningless by the office of Auditor General of Pakistan (AGP) when it pointed out that no annual statements of accounts was being prepared or submitted to the government by the HEC. As per Clause 14(4) of the HEC Ordinance 2002, the HEC is required to submit annual audited statement of accounts every year to the controlling authority together with the report prepared by the AGP.
The report further says the HEC failed to achieve the target of increasing the PhD to Non-PhD faculty ratio to 40% in five years in the Medium Term Development Framework. In this context, data pertaining to the period 2003 to 2008 was analysed which shows that the ratio was 29.1% in the year 2002-03 and it further decreased to 22% in 2007-08. In another objection, the AGP says as envisaged in Clause 10(w) of the HEC Ordinance 2002, the commission failed to establish endowment funds in universities. The proposed initiative, with contributions from the government as well as non-governmental resources, had the potential to become a major source of income. The main contributors for this fund can be students and their families, alumni, philanthropists, industry and services, international agencies and governmental organisations. The report noted that the failure deprived the higher education sector of a major source of income.
The auditors mention a huge amount of Rs 1.39 billion, spent on purchasing land in Islamabad for establishing universities with foreign collaboration, and said the land remained unutilised while the project was not likely to be materialised in near future. The report cites a case of irregular investment and transfer of project funds amounting to Rs 596.78 million. “The HEC released Rs 596.78 million for a project “Up-gradation and Strengthening of Quaid-e-Azam University, Islamabad,” during the financial years 2002-03 to 2007-08 against the estimated cost of Rs 625.78 million. According to the PC-I, the project was to start during 2002-03 and completed by 2006-07. However instead of implementing the project, management invested the funds in ‘term deposit certificates’, transferred to other projects, accounts and non-development activities, says the report.
In another case, scrutiny of the budget estimates of University of Health Sciences (UHS) for the year 2008-09 reveals that neither investments nor balances of different accounts of the ending year were shown in the budget estimates which amounted to Rs 326.99 million. “Not only balances were concealed but the budget was also shown in deficit,” the report adds. The auditors also raised objections on a heavy expenditure of Rs 154.04 million in comparison of pass out ratio of M Phil students. “As per information provided by the University of Health Sciences, 133 students were admitted during the year 2004-05 to 2007-08. Out of these students, 64 appeared under the examination, whereas only 11 scholars passed the examination and the degree were shown issued to only six students against the total expenditure of Rs 154.04 million. It was also informed that 17 students were struck off strength due to desertion. All the scholars admitted in M Phil get stipend/scholarship of Rs 20,000 per month. These scholars are bound to repay the stipend received in case of desertion. No record of recoverable/recovered amount was shown to audit,” the report says.
The audit officials have also pointed out time overrun in the execution of 18 projects execution in University of Agriculture Faisalabad while the Allama Iqbal Open University sustained a loss of Rs 36.28 million by accepting low quality printing paper. The report further reveals that the HEC failed to recover Rs 9.7 million and US$ 406,760 from 13 scholars who on completion of MS training in Korean universities/industry had not returned or left Pakistan after few days and failed to serve in Pakistan at least for a period of 2 years as required by law.
‘All is not well’ with HEC
