ISLAMABAD: A sub-committee of the Public Accounts Committee (PAC) has directed the management of the BISP to expedite the recovery of amount disbursed under Waseela-e-Haq Program-me during 2009-13.
The meeting was headed by Riaz Fatyana, which examined the audit of Poverty Alleviation and Social Safety Division for year 2016-17 and 2017-18.
The management of the BISP extended interest-free loans of Rs 422.4 million to 1,487 beneficiaries in two installments during 2009-13.
The recovery of loan is to be made in 15 years (180 installments) at the rate of Rs 1,667 per month.
Audit observed that Rs 29 million were recoverable during 2015-16 but only Rs 11 million were recovered leaving a recoverable amount of Rs 18 million.
Audit official was of the view that an amount of Rs18 million was less recovered from the beneficiaries during 2015-16.
The management replied that as per initial operational strategy of Waseela-e-Haq initiative, recovery of loans amount was required to be initiated after one year of grant period from the date of disbursement of final installment. According to this policy, recovery of loans has been initiated from 1,487 beneficiaries, who have received both installments.
The National Bank of Pakistan and the Pakistan Poverty Alleviation Fund (PPAF) were approached to recover loan amount from WH beneficiaries.
However, both organisations refused to do so due to various reasons.
The BISP management decided to effect recovery procedure, recovery of the loan amount is primarily the responsibility of the BISP field offices.
The WH wing had already provided regional offices with the list of beneficiaries from whom recovery has become due.
The BISP management explained that Waseela-e-Haq loan is recoverable from beneficiaries over a period of 15 years and continuous efforts are being made for recovery.
Till July 2020 overall recovery of Rs 79 million was made.
In another audit para related to non-imposition of penalty clause on service providers, the management of the BISP said that new contracts
with banks were made in 2019.
In order to carry out smooth operations of cash transfers by old banks, the implementation of penalty clause was withheld.
An estimated amount of Rs 1.3 billion with regard to service charges to be paid to banks is available with the BISP, which will be accordingly reimbursed to old banks after deduction of penalty.
Copyright Business Recorder, 2021