AGP flags Rs147bn 'non-transparent contracts' in KP govt audit

ISLAMABAD: The Auditor General of Pakistan (AGP), in its audit report for the year 2024-25, has unearthed serious financial irregularities in Khyber Pakhtunkhwa (KP), including eight cases involving the non-transparent award of contracts worth Rs147 billion.

In addition, the report, covering the financial year 2023-24, highlights a wide range of anomalies in the provincial government’s financial dealings-amounting to over Rs200 billion. These include fictitious expenditures, fraudulent payments, misappropriations, over-payments, irregular procurement and failure to recover and deposit government receipts into the treasury.

According to the audit report, the key audit findings include: Administrative lapses and service delivery issues: Rs9 billion in seven cases. Fictitious expenditure, fraudulent payments, and suspected misappropriation: Rs982 million in 22 cases.

- Irregular budgeting and fund releases: Rs14 billion in three cases.

- Irregular, unauthorized, and unjustified expenditures: Rs4 billion in 23 cases.

- Non-transparent award of contracts: Rs147 billion in eight cases.

- Over-payments in construction and development works: Rs2.8 billion in 36 cases.

- Losses to the government: Rs11.6 billion in 40 cases.

- Non-recovery or non-deposit of government receipts: Rs41 billion in 50 cases.

- Overpayment of salaries and irregular staff appointments: Rs950.913 million in 17 cases.

- Irregular procurement and unauthorized retention of physical assets: Rs2.9 billion in 15 cases.

The audit report recommended that the non-achievement of objectives and non-delivery of services may be investigated and necessary corrective actions taken; Fictitious expenditure and fraudulent withdrawal of funds may be inquired into, amount recovered and disciplinary action taken against the persons at fault; Irregular budgeting and releases of funds may be justified by the Finance Department. Irregular, unauthorized and unjustified expenditure may be inquired and corrective measures taken; Non-transparent awarding of contracts may be investigated and action taken against the persons at fault besides cancellation of such contracts; Overpayments to the contractors and suppliers may be investigated and amounts recovered besides taking disciplinary action against the persons at fault; Losses to the government may be made good from the persons at fault; Taxes and other government dues may be recovered from the contractors, employees and suppliers wherever not deducted and be deposited into the government treasury; Making payments to employees in contravention of rules and disregard of the employees’ entitlement may be inquired into and amount recovered besides inquiring appointments made in contravention of rules and regulations for taking action against the persons at fault. Unauthorized retained vehicles and other physical assets may be recovered and allotted to the officers entitled for use of these assets.

An official of KP government said that the audit report contains preliminary observations and reported irregularities, which are part of a routine process. These are taken up by the Departmental Accounts Committees (DACs) and later settled in the Public Accounts Committee (PAC) as per procedure. If anyone is found guilty, the PAC has the authority to recover the amount and take necessary action.