The Auditor General of Pakistan (AGP) has detected irregularities amounting to Rs 137.185 million in Zakat Fund. The AGP audit report for the year 2010-11 of the accounts of Central Zakat Fund (CZF), observed that despite availability of a number of Mustahiqeen (deserving persons), an investment of Rs 466.417 million was made in National Investment Trust Limited (NIT) and Investment Corporation of Pakistan (ICP) units in 1994.
However, later on Central Zakat Council (CZC) realised in its 73rd and 74th meeting that investment was not according to Shariah. Therefore, a policy was formulated in 84th meeting in January 2002 of CZC to en cash the shares/units. However, these shares/units have not still been en cashed. If shares of ICP are disinvested now, the loss of Zakat funds would be Rs 137,185,563, the report observed.
The audit recommended that responsibility for investment instead of distributing the fund among the deserving persons be fixed. This is not only deprivation of deserving persons from benefits of Zakat but also loss to Zakat exchequer, the report further noted. However, the management in its response, said that the ministry had earned more amount than original investment (when combined both investment ie, NIT units and ICP shares), so no loss has been incurred.
The audit holds that Zakat was required to be distributed among the deserving persons immediately on priority. Had there been any Zakat left after distribution to deserving persons, then the investment could be justified, it further noted. Moreover loss was incurred due to investment in ICP shares, which was being traded at the rate of Rs 4.25 per share during course of audit. The Audit further noted that the Departmental Accounts Committee on January 31, 2011 directed to disinvest the share and deposit the cash proceeds into Central Zakat Fund (CZF-08).
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