Why do PAC, Senate pursue audit if AGP report is flawed?
Tariq Khattak
ISLAMABAD: Senior officials in the Auditor General of Pakistan’s office have dismissed Securities and Exchange Commission Chairman Akif Saeed’s objections to audit findings as baseless, questioning why the Senate Standing Committee on Finance and Revenue and the Public Accounts Committee are pursuing the matter if the observations were incorrect.
The central question emerging from the controversy is why the SECP has chosen public objections over legal remedies if the AGP’s findings regarding Rs267 million in unauthorised payments are genuinely wrong, the sources said, adding that multiple parliamentary oversight bodies have initiated proceedings based on the audit observations, lending institutional credibility to the AGP’s work.
The AGP’s 2023-24 audit report flagged Rs267 million in unauthorised payments, including Rs156.6 million in pay and perks and Rs110.9 million in Rest and Recreation Allowance disbursed to SECP’s top management without Finance Division approval. The SECP Chairman, Akif Saeed, received a salary package of Rs41.53 million for the fiscal year 2023-24, while each commissioner received Rs35.8 million due to backdated increases.
Multiple sources within AGP expressed confidence in their audit methodology and findings. “We have done our job, we don’t need to clarify anything, it’s up to the authorities now,” one senior official stated. The sources questioned why SECP had raised objections publicly rather than pursuing legal remedies if the audit observations were genuinely incorrect.
The audit revealed that the SECP withheld Rs 14 billion in surplus from the Federal Consolidated Fund, which constituted a serious breach of financial discipline. However, the SECP Chairman chose to overlook this issue in his statements, which challenged the audit report.
AGP sources noted that if their findings were incorrect, formal complaints or legal action should have been initiated against them. “Both actions have never happened,” one source emphasised, suggesting confidence in the audit’s accuracy. They questioned why Senate committees and the Public Accounts Committee had taken up the matter if AGP’s observations were baseless.
The controversy has prompted the lawmakers to curtail SECP’s salary-setting powers, requiring future compensation decisions to follow proper approval channels.
For investors, these developments highlight persistent governance challenges in regulatory institutions, which have undermined SECP’s credibility.
Insiders say the SECP chairman’s reaction raises questions about whether the action serves institutional interests or personal protection, and who he is trying to save. When a regulator challenges findings, it creates a troubling precedent for public accountability, a former SECP official said. The timing, which suggests potential efforts to limit scrutiny of regulatory practices, should prompt us all to be more vigilant and aware, especially as Pakistan faces increased international pressure for financial sector transparency.
The standoff between AGP and SECP leadership not only creates uncertainty about institutional accountability but also poses a significant threat to fiscal discipline. Without a clear resolution, the controversy may deter investment and complicate efforts to demonstrate budgetary discipline to international lenders.
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