Rifts in AJK govt over payments for uplift schemes

By Tariq Naqash in The Dawn, Dec6
MUZAFFARABAD, Dec 4: A high level meeting held here on Friday to settle the issue of mode of payments for execution of developmental schemes of the local government and rural development (LG&RD) department failed to arrive at a decision following serious differences among the participants, sources told Dawn.

Sources said strong opposition of the incumbent LG&RD minister, Raja Naseer Ahmed Khan, to the enforcement of Assignment Account System (AAS) in LG&RD department had necessitated the meeting, with Prime Minister Raja Farooq Haider in the chair.

The LG&RD minister, sources said, was advocating reversal to the previous practice whereby the department had been drawing development funds in advance to execute its schemes instead of making payments after the execution of development work on the ground.

It may be recalled that at the outset of the current fiscal year the finance department had firmly decided that the LG&RD department shall make all payments under the AAS so that its officials do away with the practice of obtaining funds in advance, depositing them in their personal accounts and submitting details of spending afterwards at their free will.

An adamant LG&RD department somehow managed to get this instruction suspended in September but the order to this effect, issued by the finance department under intense pressure by then government, was reversed by the finance secretary on the very next day after a story in this newspaper.

Friday’s meeting, sources said, was told that the finance department had released Rs214.4 million for the first quarter and Rs97 million for the second quarter of current year to be spent by LG&RD department under AAS but the amount had not been utilised, as the LG&RD department insisted the funds should be given in advance. The total allocation for the LG&RD sector in the current fiscal year is Rs1,072 million.

Sources said that at the meeting the standpoint of LG&RD minister also drew support from PM’s principal secretary but dissenting voices were more powerful.

Even the LG&RD secretary vigorously favoured enforcement of AAS and said he would not release funds unless the schemes were processed through the AAS, sources said.

Sources said that the LG&RD minister maintained that AAS could cause “numerous problems” to the public “as in many areas National Bank of Pakistan did not have its branches.” However, the contention was disputed by some officials who pointed out that except for Kel (Neelum valley) the NBP had its branches everywhere and in inevitable situations the finance department could authorise other banks. http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/national/uplift-schemes-rifts-in-ajk-govt-over-mode-of-payment-529