KARACHI: The Auditor General has identified financial irregularities to the tune of millions in the affairs of Pakistan Tennis Federation and revealed that the management failed to conduct internal checks to identify and prevent waste, fraud, and embezzlement.
According to the audit report, a copy of which is available with The News, the management of PTF incurred an expenditure of Rs45.741 million on civil works during the financial years 2018-19 to 2024-25 without obtaining the mandatory approval from the PTF Council, which is a violation of the PTF Constitution.
Similarly, the PTF disbursed an amount of Rs16.466 million on account of salaries during the financial years 2018-19 to 2024-25 in cash instead of through crossed cheques or bank transfers, which is a serious violation of the Federal Treasury Rules.
Also, the audit scrutiny revealed that the PTF management incurred expenditure of Rs10.175 million on account of travel and daily allowances paid to players and coaches for participation in international competitions during 2019-20 to 2024-25.
The audit observed that travel allowance/daily allowance was being paid at the rate of USD 100 per day without formal approval of the Federation while these rates were revised upward from time to time on the basis of verbal directions rather than through any documented authorization, which constitutes a violation of rules.
Moreover, the audit scrutiny revealed that out of 15 affiliated units of PTF eight units failed to pay their annual subscription of Rs100,000 each for the financial year 2024-25, which has deprived the federation of its legitimate revenue.
Besides, the Ministry of Inter-Provincial Coordination released a non-development grant of Rs50 million to the Pakistan Sports Board (PSB) for onward transfer to the Pakistan Tennis Federation (PTF) as a revolving fund and the investment was required to be managed in accordance with the Finance Division’s investment policy mutatis mutandis.
“But the special grant provided solely for investment purposes was utilized by the management without lawful authority as one TDR of Rs. 25.000 million was encashed and utilized for renovation of tennis courts at PTF and the other TDR of Rs. 25.000 million was encashed to repay a loan obtained from Habib Bank Limited under a running finance agreement,” stated the report.
The audit is of the view that utilization of the investment fund in violation of the government’s instructions was irregular and unauthorized, therefore, a fact-finding inquiry should be conducted to investigate the matter and fix responsibility.
In addition, the audit observed that the PTF management incurred an expenditure of Rs. 9.586 million on the construction of a café (covering 960 sq. ft.) for tea and lunch facilities at the PTF premises, thus the utilization of the allotted land for commercial purposes constitutes a violation of the terms and conditions of the CDA allotment.
The audit scrutiny further revealed that the PTF management incurred an expenditure of Rs. 5,750,000 on renovation of the PTF Gym during 2024-25 without adherence to Public Procurement Rules and without approval of the PTF council, rendering the expenditure irregular and unauthorized.
The audit scrutiny also revealed that the PTF management incurred an expenditure of Rs. 973,710 during 2022-23 on installation of fibre chairs and roof (through M/s National FRP Industries) without compliance with Public Procurement Rules and without approval of the PTF Council, rendering the expenditure irregular and unauthorized.
The audit scrutiny revealed that the PTF management incurred an expenditure of Rs. 23,905,000 during 2018-19 on laying synthetic turf in tennis courts at PTF without compliance with the Public Procurement Rules and without approval of the PTF Council, rendering the expenditure irregular and unauthorized.
The audit scrutiny revealed that the PTF management incurred an expenditure of Rs. 3,000,000 on installation of a solar system (through M/s Aspire Tech Solution) and informed that the facility was funded by Pakistan State Oil (PSO).
But the audit observed that the work was executed without open competition, in violation of the Public Procurement Rules, while failure to record the donation in the accounts reflects weak financial discipline and poor internal control.
The audit scrutiny revealed that the PTF management did not provide any Internal Check Report for the financial year 2024-25, thus non-conduct of internal checks constitutes a violation of the provisions of the Financial Management and Powers of Principal Accounting Officers Regulations, 2021, and reflects weak internal control. When contacted Secretary PTF Zia ud Din Tufail said they would soon respond to the observations of the Auditor General.