Auditors ‘detect’ Rs33b misappropriation in EOBI

PAC panel seeks probe, record from NAB, FIA at next meeting

ISLAMABAD:

Auditors have told a sub-committee of the Public Accounts Committee that they have uncovered irregularities and misappropriation to the tune of Rs33 billion in the Employees Old-Age Benefits Institution (EOBI).

The PAC sub-committee directed the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) to submit reports regarding probes into alleged financial irregularities in EOBI at the next meeting. The PAC sub-committee met with its convener Senator Mushahid Hussain Syed in the chair.

The PAC sub-committee has also decided to write a letter to the National Bank on the issue of disbursement of Rs33 billion under the head of pensions by the EOBI.

Audit officials told the committee that suspicious payments to the tune of Rs33 billion was made by EOBI under the head of pensions from January 2009 to June 2018, and the sum was disbursed through the National Bank of Pakistan, Tameer Microfinance Bank and Bank Al-Falah.

The committee asked the NAB and the FIA to submit reports regarding the probe into the irregularities in the EOBI, including misappropriation in the purchase and sale of properties including the purchase of land on Multan Road, Lahore.

The committee also took notice of the fact that an agreement was signed between EOBI and Primaco in 2007 for completing a project within time as per the contract.

The sub-committee observed that the contract was given at higher rates, resulting in an overpayment of Rs892 million, but the project has not been completed yet.

FIA officials told the committee that investigation into the matter has been completed and the final challan will be submitted in the court in May.

The PAC panel stressed the need for transparency and accountability in EOBI's financial affairs and vowed to take necessary action to ensure that the institution operates per established rules and regulations.

During the meeting, the EOBI chairperson told the committee that digitised records of the Tameer Microfinance Bank and Bank Al-Falah have been submitted. But audit officials said that the large amount in question was paid through the National Bank.

Published in The Express Tribune, April 29^th, 2023.