Audit exposes financial discrepancies of Rs750 million at Islamabad Club

Club incurred loss of Rs199.2 million during 2022-23, still granted bonuses totalling Rs100 million to its employees

ISLAMABAD:

A recent audit report by the Auditor General of Pakistan has uncovered significant financial irregularities at Islamabad Club, amounting to Rs750 million.

The audit revealed that the club, located in the federal capital, awarded bonuses to employees despite facing substantial financial losses.

According to the audit report, Islamabad Club incurred a loss of Rs199.2 million during the fiscal year 2022-23. Despite this financial setback, the club granted bonuses totaling Rs100 million to its employees.

This decision has raised questions about financial management and accountability within the club.

The Auditor General's report highlighted several areas of concern: The report noted that Rs300 million was spent on in-house schemes at Islamabad Club without proper estimates or measurements, violating financial regulations.

Rs14.4 million was spent on building a lake alongside the cricket ground, and Rs16.1 million was used for installing floodlights at the cricket ground.

Both projects were completed without following the open bidding process, further contributing to financial mismanagement. The report revealed that Islamabad Club failed to collect Rs104.5 million in fees from its members, indicating a lack of effective financial oversight and revenue management.

The audit identified irregularities in civil works procurement, with Rs93.6 million spent without obtaining design approval from the Capital Development Authority (CDA).

Additionally, Rs105 million was spent on development projects without following proper procedures, violating regulatory requirements.

The report highlighted that Rs4.4 million was spent on hiring consultants without conducting an open competition.

Despite the club's financial losses, the decision to award Rs100 million in bonuses to employees has come under scrutiny, particularly given the financial irregularities identified in other areas.