New Delhi: Madhabi Buch, the Securities Exchange Board of India (SEBI) chief, is likely to be summoned by Public Accounts Committee (PAC) – Parliament’s audit watchdog – to review performance. The move may not see the light of the day as it can be challenged mainly on technical grounds. Lok Sabha member and Congress leader K C Venugopal is the head of PAC. The committee has finalised several topics for discussion, including the review of the performance of regulatory bodies which have been established by Acts of Parliament. Buch could be summoned as part of the review.
It was expected to summon the SEBI chief after allegations by Hindenburg Research, US-based short-seller. Hindenburg has accused Buch and her husband of obscure offshore entities.
What is Public Accounts Committee?
The PAC is mainly tasked with overseeing government expenditure to ensure transparency and accountability in the use of public funds. It primarily scrutinises the audit reports prepared by the Comptroller and Auditor General, ensuring that taxpayer money is spent efficiently and as authorised by Parliament.
Functioning of the Public Accounts Committee
The PAC is composed of 22 members, 15 from the Lok Sabha and 7 from the Rajya Sabha. Its composition follows proportional representation through a single transferable vote system. Since 1967 it has been chaired by a member from the opposition in the Lok Sabha. Ministers are prohibited from serving on this committee. A member of the committee has to leave it, if he becomes a minister during his tenure as the member.
One of the committee’s main responsibility is to review audit reports produced by the CAG, which highlight how government funds have been spent and identify any financial irregularities or inefficiencies. The PAC has the authority to summon officials and conduct hearings, allowing it to thoroughly investigate specific issues raised in the audit reports. It seeks explanations from ministries and departments regarding financial mismanagement or inefficiencies.
After its inquiries, the PAC presents reports to Parliament, offering recommendations for improving financial management and ensuring better oversight of public funds. These recommendations are not legally binding on the government.
Role and powers
The PAC is responsible for ensuring that government expenditures are in line with Parliamentary approval and that money is spent efficiently and appropriately, in accordance with the purposes stated in the budget. The committee scrutinises cases of financial losses, unnecessary expenditure or irregularities. If negligence is found, it holds the concerned ministry or department accountable, proposing disciplinary actions. In addition to investigating overspending, the PAC also critiques instances where money is saved through incorrect estimating or procedural inefficiencies.
