NAVTTC Faces Scrutiny Over Rs1B Lapsed Funds, Rs12.9M Misuse and Excess Expenditures
Islamabad: The Public Accounts Committee (PAC) has reviewed several significant audit issues concerning the National Vocational and Technical Training Commission (NAVTTC), focusing on lapsed grants, excess expenditures, and operational effectiveness. The committee raised concerns over Rs1 billion in lapsed funds, Rs12.9 million misused, and an excess expenditure of Rs3.69 billion, calling for stronger financial management and performance verification.
The PAC’s discussion began with Grant No. 39, NAVTTC’s operational budget, which closed with a lapsed amount of Rs1.289 million after surrendering Rs45.061 million. Despite the small size of the lapsed amount, the discussion quickly turned to broader questions about NAVTTC’s impact. Committee members questioned the commission’s overall effectiveness, asking if its training programs were truly aligned with market needs and if there was concrete data to support NAVTTC’s claims of success. Executive Director Muhammad Aamir Jan defended the commission, claiming a 53% employment rate for trainees and a collaboration with the Bureau of Immigration that helped 26,000 individuals find work abroad. However, members were skeptical, demanding proof through a performance audit before they could be convinced by the claims. A detailed briefing on NAVTTC’s performance was scheduled for a later date.
The next major issue was Grant No. 104, NAVTTC’s development budget, which closed with a lapsed amount of Rs1.000 billion. The department explained that these funds were allocated for a project aimed at establishing 250 vocational training institutes, but the project’s PC-I was never approved. The PAC was told that a “human error” in the Finance Division’s system led to Rs1 billion not being reflected in the SAP system, resulting in a discrepancy in the surrendered amount. The Chairman questioned how funds could lapse if they were never released, and despite the explanation, the PAC remained unsatisfied with the response. The matter was left pending for further clarification on the procedural failure and the reasons for the discrepancy.
The committee also examined Grants No. 36 and 102, which reported excess expenditures totaling Rs3.69 billion. NAVTTC attributed this excess spending to unforeseen costs such as the revision in basic pay scales and the World Bank “Post-COVID Response” project, where funds were disbursed through UNICEF due to delays in opening a government account. Despite concerns about the procedural deviation, the PAC settled the paras after confirmation that the expenditures were essential and had been regularized by the National Assembly.
