Rangers keep Rs 500m a ‘private affair’

– Punjab Rangers provide security worth Rs 488m to private installations, do not deposit money in national exchequer

– Auditors want amount along with receipts be deposited to national kitty

– Matter to be a test case for Khursheed Shah as PAC takes up Audit Report 2012-13

Pakistan Rangers have inflicted a loss of Rs 500 million to the public exchequer by providing security to private companies, Pakistan Today has learnt.

Private militias provide security to private installations in conflict regions against handsome payments. However, few know that even serving soldiers of Pakistan Rangers are doing the same on the expense of the state.

As per the Civil Audit Report on the accounts of federal government for year 2012-13 available with Pakistan Today, Punjab Rangers set a new precedent by providing security with public money to a private firm and were duly paid for their services but the amount was never deposited in the national exchequer.

The audit report has also been laid in the National Assembly while the Public Accounts Committee (PAC), led by leader of opposition Syed Khursheed Shah. It would be a test case for the newly-formed PAC as for the first time a PPP leader is heading the PAC.

As per the document, the management of Pakistan Rangers (headquarters) Punjab, received an amount of Rs 487.902 million on account of deployment of Rangers personnel for security purpose from 2006-12.

Surprisingly, the Rangers also provided security to a private firm Fatima Fertilizer Company located in Sadiqabad, Rahimyar Khan. There is no precedent for such a protection provided to a private company by government’s law enforcers on public expense. This is the only private outfit for which Rangers provided security.

Fatima Fertilizer is jointly owned by business tycoons Arif Habib, who is the chairman of the group, Mukhtar Shaikh, his sons Fawad Mukhtar, who is the CEO of the company, and former Multan nazim Faisal Mukhtar, the company’s director.

Fatima Fertilizers Company paid Rangers Rs 57.808 million for security of its installations from October 2007 to September 2011. Another amount of Rs 35.173 million was paid for provision of security from October 2011 to September 2012.

As much as Rs 25.557 million was received by Rangers for provision of security from May 2009 to Nov 2010 at New Benazir Bhutto International Airport, Islamabad while Rs 20.189 was paid for the duration of May 2011 to April 2012.

Another amount of Rs 1.260 million was received by Rangers for security provision at Tarbela and Ghazi Barotha dams from July 2010 to March 2012, Rs 9.900 million for the same purpose at same place for a period from April 2012 to June 2012, while Ministry of Petroleum and Natural Resources paid Rangers Rs 338.015 million for security provision at gas pipelines across Punjab from September 2006 to September 2012.

LEGAL ARGUMENT:

Para 26 of GFR Volume-1 states that it is the duty of the departmental controlling officers to see that all sums due to government are regularly and promptly assessed, realised and duly credited in the public account.

Rule 7(1) of FTR Volume-1 states that all moneys received by or tendered to government officers on account of the revenue of the federal government shall without undue delay be paid in full into treasury or into the bank.

No department of the government may require that any money received by it on account of the revenues of the federal government be kept out of the federal consolidated fund of the federal government. Under the law, all moneys received as aforesaid shall not be appropriated to meet departmental expenditure.

AUDIT OBSERVATIONS:

The audit observed that the amount received was not deposited into government treasury. While the record of retention of receipt and utilisation of the amount was not produced for the audit as well.

“The Audit Department is of the view that the retention and utilisation of the government receipt was irregular and it deprived the government of its due receipt. It also was of the view that the amounts received were susceptible to misappropriation,” says the report.

MONEY SPENT:

“The Rangers management responded that the amounts received on account of security to BenazirBhuttoInternationalAirport were expended on the protection and security of sites team of foreign workers,” says the document.

About the amounts received from Fatima Fertilizer Company and Petroleum Ministry, the Rangers management responded that the amounts received had been expended by the concerned wings/troops employed on internal security duty. It was certified that the public money out of allocated budget had not been spent for maintenance/sustenance of troops including vehicles and equipment deployed for said task and no budget was allocated by the federal government.

The Rangers stated that record had been maintained and verified by the departmental audit authority and all expenditure had been made with the approval of the competent authority.

Hence, no excess except routine daily expenditure is being received which could be deposited into the government treasury.

BUDGET MONEY UNUSED?:

The contention of the organisation that the amount was expended by troops was not accepted by auditors because adequate funds were already allocated in the regular budget for the said purpose.

The response by Rangers was not accepted by auditors as the government vehicles and manpower were used for internal security duties while the entire expenditure for security provision was met from the government budget.

After a meeting in the Pakistan Rangers Headquarters Lahore on January 22, 2013 and subsequent record verification, the principal accounting officer (PAO) was informed on January 29, 2013 but Departmental Accounts Committee meeting was not held till the finalization of the audit report.

The Audit Department has recommended that the government receipts should be deposited into the government account.