Retention of security charges: irregularities worth Rs 14.8 billion detected in CAA: audit report

The Civil Aviation Authority (CAA) committed irregularities over the retention of security charges, worth Rs 14.8 billion, in last two fiscal years 2016-18. According to financial statements of the CAA for the years 2016-17 and 2017-18, the Authority received an amount of Rs 6,975.532 million and Rs 7,833.504 million respectively as security charges.
However, the Audit recommended that the amount may be recovered from Civil Aviation Authority and deposited into the Federal Consolidated Fund. According to Audit Report 2018-19, the CAA made irregularities during past two fiscal years and under ASF Act, 1975, the following functions have been assigned to Airports Security Force: security of all airports, aerodromes and civil aviation installations against acts of unlawful interference or threats of such interference; and security of all structures, equipment, material and installations belonging to operators and other government or non-governmental organizations; security of aircraft, passengers, cargo and mail; proper conduct of persons at the airports and aerodromes including control of surface vehicles.
The CAA under the administrative control of Aviation Division charged security charges from passengers at the rate of $10 or Rs 1,030 per departing international passenger (revised as and when currency conversion rate of USD changes plus/minus on the average, to be reviewed every six months) and Rs 100 per departing domestic passenger.
Audit observed that the entire security functions at airports are performed by Airports Security Force as per ASF Act 1975, and during financial years 2016-17 and 2017-18 budget allocations of Rs 5,313.791 million and Rs 5,510.977 million respectively were made for salaries and operational expenses including cost of arms and ammunition of ASF.
The AGP is of the view that entire security functions at airports are performed by ASF being a federal entity under the administrative control of Aviation Division, therefore, imposition and subsequent retention of security charges by the CAA was irregular. The security charges were required to be deposited into government treasury to meet the financial requirements of the ASF.
The management replied that CAA Board in its 139th and 143rd meetings decided to levy security charges with effect from August 2015. The security charges levied by CAA Board on international/domestic passenger were for the purpose of infrastructure development at all airports.
The reply was not acceptable because the charges received were meant for security purposes rather than infrastructure development. Moreover, the security functions are performed by ASF, the report maintained.