ISLAMABAD, Dec 5: More troubles sprang up for former prime minister Raja Pervez Ashraf on Thursday as the Supreme Court declared illegal Rs52 billion development funds he had allocated during his nine-month tenure as premier and ordered action against him and all others responsible for it.

In its verdict, the court said that Rs47bn, out of the total allocation of Rs52bn, was utilised illegally in Raja Ashraf’s native town of Gujar Khan. The funds were also spent illegally in constituencies of some prominent leaders of the previous ruling coalition, including former prime minister Yousuf Raza Gilani, Ali Musa Gilani, Abdul Qadir Gilani, Moonis Elahi, Chaudhry Shujaat Hussain, Chaudhry Pervaiz Elahi, Wajahat Hussain, Sheikh Waqas Akram and the Sherazi family of Sindh.

The judgment said that Rs22bn had been allocated for Raja Ashraf’s constituency under the People’s Work Programme-II for MNAs, MPAs and notables and another Rs25bn under the prime minister’s ‘discretion’.

“The constitution does not permit the use/allocation of funds to MNAs/MPAs/notables at the sole discretion of the prime minister or the chief minister. If there is any practice of allocation of funds to the MNAs/MPAs/notables at the sole discretion of the prime minister/chief minister, the same is illegal and unconstitutional. The government is bound to establish procedure/criteria for governing allocation of such funds for this purpose,” the verdict said.

Raja Ashraf is already facing two separate charges in the Supreme Court relating to rental power projects scam and illegal appointment of former Oil and Gas Regulatory Authority chairman Tauqeer Sadiq in 2009 when he was chairman of the appointment committee.

He served as prime minister for nine months (June 22 last year to March 16 this year) in the last PPP government. He succeeded former prime minister Yousuf Raza Gilani after he was disqualified by the apex court in a contempt of court case for not writing a letter to the Swiss authorities to reopen graft cases against former president Asif Ali Zardari.

Thursday’s verdict did not mention the penalty for Raja Ashraf and other persons responsible for allocating and utilising the Rs52bn funds.

However, a senior official of the National Accountability Bureau told Dawn that the bureau was already investigating the case under a directive of the Islamabad High Court.

The apex court also declared illegal two big development schemes executed in Gujar Khan -- Mandra-Chakwal Road (Rs2.7bn) and Sohawa-Chakwal Road (Rs3.3bn). The verdict said these projects had been added to the PSDP 2012-13 on the former prime minister’s directives on Aug 2 and 31 last year, but their execution and funds were given to the National Logistic Cell from the Pak Public Works Department.

The judgment said: “Due procedure was not adopted and approvals were not taken from the appropriate forum (Executive Committee of National Economic Council) for allocation of development funds.

“The amounts, as approved in the budget passed by the National Assembly, have to be utilised for the purpose specified in the budget statement. Any re-appropriation of funds or their utilisation for some other purpose, though within the permissible limits of the budget, is not justified. In such circumstances, the supplementary budget statement has to be placed before the parliament following the procedure provided in Articles 80 to 84 of the Constitution and the rules/instructions noted hereinabove.

“Though funds can be provided for development schemes by way of supplementary grant, for that purpose procedure provided in Articles 80 to 84 of the Constitution and the rules/instructions noted hereinabove has to be followed strictly.

“The Supreme Court gave a verdict that the National Assembly, while giving assent to a grant which is to be utilised by the executive at its discretion, has to follow the procedure provided in Articles 80 to 84 of the Constitution as well as the rules of procedure, 2007. However, such discretionary grant cannot be spent at the absolute discretion of the executive and the discretion has to be exercised in a structured manner.”

BALOCHISTAN SCHEMES: In a separate judgment regarding development schemes in Balochistan, the Supreme Court observed that the government had been making statements that it had spent 100 per cent amount of the PSDP for 2011-12, but the fact was that no amount had been spent on 154 schemes and the provincial government functionaries had embezzled and misappropriated an amount of Rs6.171 billion.

“Non-development expenses were brought under the umbrella of development schemes, which is a clear violation of all settled norms of planning,” the verdict said.

“On having gone through all the material brought on record in respect of allocation of funds and expenditures incurred on the projects/schemes, it is prima facie held that the poor citizens of Balochistan are being deprived of the fundamental right to life as envisaged under Article 9 of the Constitution. It is pertinent to note that the present situation also runs contrary to Article 3 of the Constitution, which provides that the state shall ensure the elimination of all forms of exploitation,” it said.

The court observed that functionaries of the provincial government, prima facie, were responsible for spending the huge funds contrary to the guidelines issued by the P&D Department, Government of Balochistan, thus were accountable, as the money spent has clearly not proved beneficial to the people in far-flung areas of Balochistan.

The court ordered the provincial government to conduct a forensic audit of the leftover 75 per cent projects/schemes. On receipt of the audit report, the matter should be taken up with law-enforcement agencies to ensure that delinquents who have allegedly indulged in corruption are dealt with strictly in accordance with the law so that it may serve as a deterrent for like-minded persons in future as well.