Murky waters : Ineligible beneficiaries received BISP cash: AGP

Audit reveals financial impropriety at the institution.

ISLAMABAD: Huge financial corruption has been detected in the Benazir Income Support Programme (BISP), said Auditor General of Pakistan, citing an audit report for 2013 & 2014.

In January 2012, the BISP management paid Rs4,143.925 million to five commercial banks on estimation basis for onward distribution among 1,381,208 beneficiaries.

The audit observed that Rs2,049.703 million was paid to 683,235 beneficiaries whose Computerized National Identity Cards (CNIC) were without an updated thumb impression and those who did not possess a CNIC. The audit is of the view that the amount of Rs2,049.703 million was handed out to ineligible beneficiaries. The audit is also of the view that undue favour was extended to Bank Al-Falah, Habib Bank Ltd, Tameer Bank, Summit Bank and United Bank Ltd. Funds were placed at their disposal for ineligible beneficiaries.

In its defence, the management claimed that as per agreement signed with the partnering banks, BISP was required to issue quarterly installments in advance for each eligible beneficiary (with or without CNIC). The banks would retain it for 30 days to cover the cost of printing and distributing the Benazir Debit Cards (BDC) to beneficiaries, as no such cost was charged to the beneficiaries.

However, the installment was not linked to a beneficiary. Eligible beneficiaries who provide their thumbprint impression verified and possess a valid CNIC would receive the installment.

The response indicates that the management has accepted the audit observation that payments were released to five commercial banks for ineligible beneficiaries on estimation basis and not for specific beneficiaries identified through the BISP Scorecard Targeting Method.

During the verification of records on 7 March 2013 the management agreed that advance payments were released on estimation basis to commercial banks.



The Departmental Accounts Committee (DAC) in its meeting on 2 April 2013 directed the management to provide the complete list of 683,235 ineligible beneficiaries within a week. These were the ineligible beneficiaries for whom the payment was released and subsequently adjusted to Audit.

However, the BISP management on 2nd September 2013 provided data of only 381,864 of those ineligible beneficiaries who were registered till 10th January 2012 .The review of the data revealed that out of 381,864 ineligible beneficiaries, payment amounting to Rs156.222 million was made to 52,074 beneficiaries only, thus establishing that the remaining 631,161 beneficiaries were not eligible for the remaining payment of Rs1,893.481 million.

It was revealed from analysis of the data of 381,864 ineligible beneficiaries shown to have been paid, 88,462 beneficiaries were paid an amount of Rs265.386 million. This payment was made through Pakistan Post after 10th January 2012 from GOP funds, in March and June, 2012 indicating duplicate payment.

The audit recommended that an inquiry should be conducted and responsibility be fixed for payments made on estimation basis. However, no progress or compliance report was presented to the Auditor General by the management of the BISP that was also a violation of set rules and procedure.

Published in The Express Tribune, August 18^th, 2015.