Reinforcement of Financial Prosperity and Discipline among DDOs – AG 26.01.201
The undersigned seeks to draw your esteemed attention to the urgent need for reinforcing financial discipline among the Drawing and Disbursing Officers (DDOs) across various Provincial and District government departments. This call to action stems from alarming findings during the internal auditing of several District Accounts Offices (DAOs), which revealed significant irregularities and fraudulent payments to non-gazetted employees.
Audit Findings: A Call for Rigorous Financial Discipline
During the internal audit of various DAOs, multiple instances of fraudulent and irregular payments were discovered, particularly under the heads of salary and arrears. These findings underscore a concerning trend of a lax attitude among DDOs towards maintaining financial discipline and control. Such negligence not only compromises the financial integrity of the departments but also erodes public trust in the government’s ability to manage public funds effectively.
Case in Point: The Bahawalnagar Incident
A striking example of this issue can be observed in the case of the District Accounts Office in Bahawalnagar. During a system audit, the internal audit team detected suspicious payments amounting to an astonishing 900 million to questionable employees within the Education Department of Bahawalnagar. In response to these findings, the concerned DDOs were asked to authenticate the bona fide status of the employees working in their respective cost centers. However, instead of providing clear and conclusive verification, the DDOs evaded responsibility by merely stating “uptil now not verified.” This ambiguous response not only highlights their irresponsible behavior but also raises serious concerns about their commitment to their duties as drawing and disbursing officers. The detailed inquiry report is attached as Annexure-A for your perusal.
Need for Immediate Departmental Inquiry
It is crucial to note that the matter has already been referred to the National Accountability Bureau (NAB). Nevertheless, it is imperative that a departmental inquiry be initiated at your end against the concerned DDOs. Such proactive measures are essential to establish accountability and ensure that similar incidents do not recur in the future. By holding DDOs accountable for their actions, we can reinforce the importance of financial discipline and deter others from engaging in similar malpractices.
Widespread Issue: Other Departments Under Scrutiny
Regrettably, the Bahawalnagar incident is not an isolated case. Similar frauds have been unearthed in other departments such as Police, Agriculture, and more. In each of these cases, DDOs were found to be neglecting their prime responsibilities and colluding with the staff posted at the respective District Accounts Offices. These appalling conditions in financial matters reflect a systemic issue of weak financial oversight across various departments. It is imperative to address these weaknesses to restore financial propriety and discipline among all DDOs.
The Role of Internal Audits in Strengthening Financial Controls
Internal audits play a crucial role in identifying and addressing financial irregularities within government departments. The findings from these audits serve as a wake-up call for the need to strengthen financial controls and ensure strict adherence to established financial procedures. DDOs, being at the forefront of financial management within their respective departments, must take these findings seriously and implement corrective measures promptly.
Ensuring Accountability: Steps to Reinforce Financial Discipline
To reinforce financial discipline among DDOs and prevent future irregularities, the following steps are recommended:
- Comprehensive Training Programs: Regular training programs should be conducted for DDOs to enhance their understanding of financial management and the importance of adhering to financial controls.
- Stringent Auditing Procedures: Implement more stringent auditing procedures to detect and address financial irregularities promptly. This includes both internal and external audits to ensure a comprehensive review of financial transactions.
- Clear Accountability Mechanisms: Establish clear accountability mechanisms to hold DDOs responsible for any financial irregularities detected within their departments. This includes timely initiation of departmental inquiries and appropriate disciplinary actions.
- Strengthening Internal Controls: Enhance internal controls within departments to prevent unauthorized and fraudulent payments. This includes regular reviews and updates of financial procedures to address emerging risks.
- Collaboration with NAB: Strengthen collaboration with the National Accountability Bureau to ensure thorough investigations of financial irregularities and bring those responsible to justice.
The Path Forward: Commitment to Financial Integrity
The path forward requires a collective commitment to financial integrity from all DDOs and departmental heads. By prioritizing financial discipline and adhering to established controls, we can safeguard public funds and restore trust in the government’s financial management capabilities. It is only through sustained efforts and unwavering commitment to accountability that we can achieve financial prosperity and discipline within our government departments.
Conclusion: A Call to Action
In conclusion, the reinforcement of financial propriety and discipline among DDOs is not merely a procedural requirement but a fundamental responsibility towards ensuring the effective management of public resources. The findings from the internal audits serve as a stark reminder of the need for stringent financial controls and accountability mechanisms. Let us work together to address these challenges, hold those responsible accountable, and pave the way for a financially disciplined and prosperous future.
