Honorable Speaker, of the Parliament, Special Guest Auditor General of Bangladesh and distinguished ladies and gentlemen: Good Morning. I’m pleased to be here today on the occasion of the launching of the Public Account Committee strengthening project.. Bangladesh like neighbors India, Nepal and Pakistan has adopted the British Westminster model of democracy and accordingly designed its formal system of financial accountability. The fundamental principle underlying the Westminster model is that the government is accountable to Parliament. The right of the people to know how public funds are collected and spent is one of the cornerstones of this model of democratic government. The system in Bangladesh does not appear to be significantly different from other Commonwealth countries. But a close examination reveals that there are significant differences in structure and procedures that make a marked difference in the way the system operates. Nevertheless the system is dynamic with room for continuing improvement. Accountability as we all understand is not optional in a democracy. It is the price in exchange for power and delegation of authority. Governance and financial accountability are thus inextricably linked. In Bangladesh as elsewhere the primary responsibility for ensuring financial accountability rests with the government. Parliamentary oversight committees ensure completion of the accountability loop. Though there has been significant progress in PAC functions since Bangladesh moved to democratic system in 1991, certain limitations appear to be have reduced the full impact of the PAC’s work. The effectiveness of the PAC has been constrained by lack of any requirement for the GoB to respond to the PAC’s recommendation, its inability to follow up recommendation or action taken by the govt because of lack of continuity and permanent staff, research capacity and other logistic weaknesses. The PAC hearings are not open to public, despite the public interest and non-partisan nature of its mandate. As a result, the public is not well informed on the debate on auditors’ findings, the position of the government, action taken in relation to the parliamentary scrutiny of the auditor’s work. If the principle of openness is practiced, I’m sure the PAC will not only help in creating a strong chain of accountability but it will deter all avenues for mis use of public funds. It is commendable that the chairs’ of all previous PAC acknowledged the current limitation and were keen to bring some visible improvement in its operation. The role of Parliament Secretariat can not be overemphasized. As a continuing and independent institution, it should also be well equipped to provide all necessary support to committee functions. It is heartening to note that Parliament Secretariat acted proactively by preparing a proposal aimed at improving PAC function in line with comparable committees in democratic countries. The establishment of a permanent secretariat unit by the Parliament Secretariat is particularly noteworthy which hopefully will be able to provide continuous support to PAC function. The World Bank is happy to be part of your effort for strengthening the functions of the PAC. Though the technical assistance provided by the Bank is not large enough to address all the existing bottlenecks, it will however lay the foundation for broadening the support in future to other legislative oversight committees, Parliament Secretariat and Institute of Parliamentary Studies. In order to materialize this, a common, well thought out and coordinated effort is required. There is need to work in an innovative manner on several fronts concurrently. A number of small – but strategic steps must be taken immediately. If they are implemented well, the pay off would be significant. Taking opportunity of this occasion let me also mention about the need to continue the work of the defunct PAC in whatever form the government may deem fit. The government seemed to be responsive to an alternative arrangement while PAC is in abeyance, as an interim mechanism to allow pending audit reports to be pursued without delay and at the same time help avoid adding to the back log from prior years. Regrettably, despite government’s firm commitment, progress towards an effective ad-hoc arrangement in the absence of the PAC is not visible. We firmly believe a range of important national matters would benefit from the establishment of interim arrangement till the formation of next PAC under the forthcoming parliament. Amongst others, the delay may cause unnecessary hardship to retired civil servants whose pension payment may have been on hold and audit reports for three consecutive years remain unattended. In addition, future recommendations emanating from the proposed interim arrangement to PAC would provide an additional opportunity for the Care Taker Government to further strengthen the arrangements for good governance and effectiveness of government programs and activities. We remain committed to support you in your endeavors.
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