AGP’s audit report reveals massive financial irregularities
The AGP says his office has fulfilled its obligation and the matter now rests with the governor STOCK IMAGE
The Auditor General of Pakistan (AGP) has reported irregularities of more than Rs205 billion during the financial year 2019-20 in the petroleum sector, telecom sector, National Highway Authority (NHA), Public Works Department (PWD), Estate Office, Capital Development Authority (CDA), Oil and Gas Regulatory Authority (OGRA) and other government departments.
The audit report also highlights the irregularities committed in the import of liquefied natural gas (LNG), citing its mismanagement and expensive purchase as reasons for losses to the national exchequer.
After completing its special audit of government institutions for the financial year 2019-20, the AGP office forwarded its Audit Report 2020-21 to Finance Minister Shaukat Tarin who will present the report in the National Assembly on Tuesday (today).
According to the audit report, mismanagement and delays in LNG imports in the financial year 2019-20 cost more than Rs1.65 billion to the national exchequer. Unnecessary delays in LNG tenders led to the procurement of expensive LNG. The audit report in its recommendation urged that the delays should be investigated and those responsible should be identified and put to task.
A second audit case of poor planning of LNG imports revealed a loss of more than Rs1.31 billion to the national exchequer. Similarly, a loss of Rs8.7 billion was caused due to payments of additional port charges.
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The report said that financial irregularities under a total of 57 audit paras was identified and more than Rs2.37 billion in recoveries were discovered in the telecom sector. Further financial irregularities amounting to Rs139.1 million were discovered on account of human resources and payments to employees. Pakistan Telecommunication Authority (PTA) had audit observations of over Rs3.32 billion in respect of financial irregularities, from which over Rs391 million have been reported as recoveries.
Financial irregularities amounting to Rs43.64 million have been found in PTA’s management of accounts with commercial banks. The report recommended that interest money be recovered from the National Bank of Pakistan and invested in future cash flows (FCF), while miscellaneous financial irregularities amounting to Rs3.28 billion were also found.
An unreturned additional frequency spectrum to the PTA by a private mobile phone company caused a loss of $17.3 million to the national exchequer. Unrecovered late payment arrears and license renewal fees from telecom operators caused an additional loss of $72.5 million.
The report further said that non-deduction of sales tax on services has also caused a loss of Rs2.6 million to the national exchequer and urged that the recommendations of Departmental Audit Committee (DAC) should be implemented immediately.