ISLAMABAD: A Sub-Committee of the Public Accounts Committee (PAC) on Wednesday scrutinised the payment of Rs840 million in commissions by the Benazir Income Support Programme (BISP) to commercial banks, with audit authorities alleging that the absence of a competitive bidding process resulted in excessive payments.
The issue came under discussion in a meeting of the sub-committee chaired by Shahida Akhtar Ali. The committee reviewed audit observations related to the Ministry of Poverty Alleviation and Social Safety Division for the financial years 2010-11 and 2013-14. Audit officials informed the committee that six commercial banks had been engaged to distribute payments to the BISP beneficiaries. According to the audit record, Rs24 billion was disbursed through the banks, while Rs840 million was paid as commission charges. Auditors maintained that the banks had not been selected through a competitive bidding process, resulting in commission payments that were higher than necessary.
After deliberations, the sub-committee directed the department concerned to have the record verified by audit authorities. The committee further decided that the audit objection could be settled subject to verification of the relevant documentation and confirmation by the audit officials.
