Summary The 20-page verdict was read out by Justice Jawwad S Khwaja.
ISLAMABAD (Dunya News) - The Supreme Court of Pakistan has declared that all expenditure from the public exchequer must be made in a transparent manner and each rupee of such expenditure must be audited by the Auditor General of Pakistan (AGP), to ensure compliance with law.
A three-member bench comprising Justice Jawwad S. Khawaja, Justice Khilji Arif Hussain and Justice Ejaz Afzal Khan issued detailed verdict in media commission case regarding usage of secret funds here on Tuesday.
The court declared Rule 37(5) of the General Financial Rules (GFR) of the Federal Government as unconstitutional.
“This rule had uptill now been used to shelter Secret Service Funds from independent audit by the AGP – funds which existed in the budget of no less than 27 ministries (FY 2012-13) and amounted to more than Rs. 3.57 billion.”
The court has clarified that after the 18th Amendment, on account of Article 170(2), the AGP enjoys a strong constitutional mandate to audit all public spending without exception. Funds which have been declared as secret either by an executive order or ordinary legislation do not fall outside this purview.
The bench ruled that the AGP is allowed, in fact obliged, to exercise oversight over accounting procedures adopted by the government. Article 170 (1) of the Constitution and Section 5(1) of the Controller General of Accounts (Appointment, Functions and Powers) Ordinance, 2001 make this amply clear.
The apex court further announced that under Article 171, the AGP’s reports must be shared with the President, Governor, the Parliament and the provincial assemblies.
