JAMAL KHAN MANDOKHAIL, C.J.---Facts of the case are that the petitione r is a Private Limited Company , with a name of the Peoples Primary Healthcare Initiative ('PPHI' ). The Government of Balochistan through an agreement has assigned a task of providing Primary Health Services, in basic health units throughout the Province and in this behalf, has allocated 5% budget of the Health Department, to be spent through the PPHI. The Auditor General of Pakistan issued notices dated 04.12.2015 and 07.01.2016, asking the PPHI to ensure audit of the accounts through the Auditor General of Pakistan. Feeling aggrieved, the petitioner has filed the instant petition.
2. Learned counsel for the petitioner stated that the petitioner is a Private Limited Company , which has been registered with the Securities and Exchange Commission of Pakistan, and is being controlled and run by its Board of Directorate, therefore, the Auditor General has no jurisdiction to conduct audit of a private Company . He added that the PPHI has entered into an agreement with the Provincial Government, pursuant to which, the Company shall conduct its audit through a private firm of Chartered Accountant, on the basis whereof, which the Company is regularly doing its audit, therefore, on this score as well, the respondent has no authority to issue notices to the petitioner for audit. He stated that the Auditor General can conduct audit only of the Federal Government, a Provincial Government, an Authority or a Body established by the Government, whereas, the petitioner does not fall within any such category , therefore, the Auditor General cannot conduct audit of the petitioner's Company .
3. Heard the learned counsel and have perused the record. According to Article 170(2) (t) of the Constitution of the Islamic Republic of Pakistan, 1973, the Auditor General, shall conduct audit of the accounts of Federal, a Provincial Government, any authority or body established by or under the control of the Federal or a Provincial Government or a Local Government. It is also import ant to mention here that the Auditor General's (Functions, Powers and Terms and Conditions of Service) Act, 2017 ('the Act, 2017') has been amended, according to which "public sector enterprises" has been included in definition of the Act. Besides, Section 8 of the Act, has been amended as under: " (d) audit the accounts of any authority of body established by, or under the control, of the Federal or a Provincial Government or Local Government, including public sector enterprises, and determine the nature and extent of such audit". "
Section 15 of the Act, has also been amended in the following terms: "15. Audit of public sector enterprises.---Notwithstanding anything contained in any other law for the time being in force, the Auditor General shall audit the accounts of a public sector enterprise in accordance with the provisions of this Ordinance and he shall have, for the purpose of such audit, right of access to the books and accounts of public sector enterprises, whether manual or electronic".
4. After amendment in the Act, now the Auditor General of Pakistan can carry out audit of the accounts of any authority or body , established by or under the control of Federal or a Provincial Government or a Local Government, including a public sector enterprises as well. Thus, a company established under the Companies Laws, which are owned, controlled and financed by the Federal Government, a Provincial Government or a Local Government, its accounts shall be audited by the Auditor General. In this behalf, the Hon'ble Supreme Court, in a judgment, passed in Civil Petition No.21 1-K of 2016, in the case of 'Sindh Rural Support Organization v.
Federation of Pakistan and others' , has held as under: "another significant aspect that is lost sight by the learned ASC for the petitioner is sections 9 to 11 of the Ordinance 2001 ibid. When the provision of the Articles 169 and 170 of the Constitution, 1973 noted above are read together with sections 8, 9, 10 and 11 of the Ordinance XXIII of 2001 (PLD 2001 (C.S.) 546 (sic) as amended it is abundantly clear that Auditor General has jurisdiction in relation to the accounts of the Federation and of the Province and district and so also the accounts of "any authority or body established by the Federation and or a Provinces" within the contemplation of Article 169 and so also sub-article (2) (of article 170 of the Constitution)."
5. Admittedly , PPHI is through a Private Limited Company , registered under the Companies Ordinance, but, it has been owned and established by the Government of Balochistan and is funded through the Provincial Consolidated Fund. According to the above Constitutional and legal provisions, audit of the accounts of the Government owned Company should be carried out by the Auditor General, therefore, audit of PPHI is also the responsibility of the Auditor General of Pakistan. Thus, the Auditor General, should carry audit of the Company , initially w.e.f. 2017 and onward, whereas, in second phase, audit of the Company may be conducted from the date of its establishment, till 2017. At this stage, the learned counsel for the petitioner and the Chief Executive Officer, PPHI, pointed out that already audit of the Company has been carried out by a private Chartered Accountant, as provided by the agreement. Be that as it may, it does not fall within the ambit of the Act of 2017, however , the Auditor General, while conducting audit of the company , should take into consideration the said audit report of the Company as well, which may help him in the process of the audit.
6. We have been informed that the amount meant for the PPHI, is being dispensed through the Health Department, Government of Balochistan, therefore, the Auditor General, should ask the Secre tary, Health Department, for the purpose of conducting audit instead of the CEO of the Company . The Chief Execu tive Officer, stated that presently the amount paid to the PPHI, is 5% of the total budget of the Health Department, Government of Balochistan, which is being disbursed through the Health Department. He suggested that if the said amount is paid to PPHI directly through Finance Department, it will be more convenient for the PPHI and the Auditor General to conduct audit. He pointed out that in this respect summery has already been moved, which is lying before the Secretary , Finance Department, Government of Balochistan. The learned AG replied that this is an administrative matter , in respect of which, the Competent Authority will pass an appropriate order , in accordance with law .
7. The petition is disposed of accordingly .