TIB's Fact-Finding Report on CAG and PAC-press coverage 2

The New Nation, 22 September 2002

The Chief Justice and the Public ACcounts Committee (PAC) should be involved in the appointment of Comptroller and Auditor General (CAG) in order to ensure transparency and accountability of the country's supreme audit institution.

This was suggested by the Transparency International Bangladesh (TIB) while launching two fact- finding reports on CAG and PAC at the city's CIRDAP auditorium yesterday.

Since the CAG is responsible for overseeing the fianancial propriety and irregularities of different government departments and agencies, the TIB also called for undertaking neessart arrangements to audit activities fo the CAG to ensure transparency and accountability of this important institution by appointing a reputed local or foreign audit firm, which will submit the audit report of the PAC.

According to the TIB, the office of CAG submitted 770 audit reports to the President and Parliament in last 30 years up to July 16 this year. Only 141 or 18.3 per cent of these audit reports were discussed in the Parliamentary Standing Committee on Public Accounts (PAC) meetings, while the rest 81.3 per cent of the reports are yet to be discussed.

These 770 audit reports contained 16,085 audit objections. Only 32. 6 percent of these audit objections were discussed in the PAC meetings, while the rest 67.3 per cent of the audit objections, involving 3.8 billion US dollars, are yet to be discussed.

"NO step could be taken regarding this staggering amount of US $ 3.8 billion of the government due to the backlog of a large number of audit objections with the PAC'" the TIB observed.
According to the TIB, about TK 200 crore is recovered or adjusted every year as a result of the audit recommendations.
The office of CAG has an important role in identifying the administrative and financial irregularities, and the occurrences of corruption in the public offices. The CAG office carries out the actual audit works of 22,885 administrative units through its 10 subordinate Audit Directorates.

" The CAG's office is only an attached department of the Finance Division. It depends on the Finance Division for its budget. It has to rely on the Ministry of Establishment and the Ministry of Finance for creating any post. Even, it has to take necessary clearance from the Establishment Ministry to fill its vacant posts. Though the CAG is independent in the conduct of audit, his authority in administrative and financial matters is restricted," TIB says.

TIB finds that there is a gross discrepancy between the accounts kept by the Comptroller General of Accounts and that of the Bangladesh Bank. This discrepancy reportedly now stands at TK 1000 crore. Because of this discrepancy, the Bangladesh government has to employ different measures to balance cash at the central bank.

The TIB also made 16-point recommendations to make the functions of the CAG more effective.
On the other hand, the TIB, releasing the report on the Standing Committee on Public Accounts (PAC), said the PAC, a parliamentary watchdog in bringing about transparency, accountability and above all combating corruption in public offices, discussed only 33 percent of 16,085 audit objections submitted to it by the office of CAG in last 30 years, while 67 per cent of the objections, involving US$ 3.8 Billion, are yet to be discussed.

PAC, the most important body to take measures against irregularities and corruption, is constituted with directly elected parliament members belonging to different political parties. It (PAC) is legally responsible to review the audit reports of the CAG. "It would be useless on the part of CAG's office to raise audit objections if the PAC is not framed timely to hold meetings on the audit report, " said the TIB. Evan the ministries concerned do not play their due role in resolving the audit objections, it added.

Professor Khan Sarwar Murshid, Chairman of the Board of Trustees of TIB, presided over the launching ceremonies of both the reports.

Member of the Board of Trurstees of TIB Professor Muzaffar Ahmad and Executive Director of TIB Barrister Manzoor Hasan also spoke on the occasion.

Staff Report