Without the approval of the Ministry of Finance, the SECP administration approved the salary increase in the Policy Board meeting on October 17, 2024, which was implemented from July 1, 2023, audit report
Commerce Reporter , Daily Dawn, Dawn TV Report
Islamabad: An audit report has raised serious concerns over the financial affairs of the Securities and Exchange Commission of Pakistan (SECP), including an unauthorized increase in the salary package for the chairman and commissioners, which amounts to more than Rs 156 million annually.
The report, compiled by the Auditor General of Pakistan (AGP), states that according to the law, the SECP is required to obtain approval from the Ministry of Finance for salary increases, however, the SECP administration approved the increase in employee salaries in a policy board meeting on October 17, 2024, which was declared effective from July 1, 2023.
The audit revealed that the salary package of SECP Chairman Akif Saeed reached Rs415.3 million for the financial year 2023-24, while each commissioner received Rs358 million due to an increase in backdated salaries.
Furthermore, the report stated that the SECP illegally distributed Rs110 million as an entertainment allowance to commissioners and staff.
The AGP report clarified that although these increases were approved by the SECP Policy Board, the board did not have the authority to authorize them; moreover, the increases in salaries and allowances were made without the prior approval of the Ministry of Finance, totaling Rs 3.77 billion 22 million.
The report urged the Ministry of Finance to either approve these illegal increases or scrap them.
The audit also highlighted that the SECP failed to deposit nearly Rs 14 billion in the federal consolidated fund, including Rs 7.11 billion in revenue, which was collected from licensing and registration fees (Rs 4.13 billion), the insurance sector (Rs 591.5 million), the securities market (Rs 4.77 million), and special companies (Rs 1.91 billion).
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