PAC questions planning division over ‘financial mismanagement’

ISLAMABAD: The Public Accounts Committee (PAC) voiced serious concerns over financial mismanagement in the Planning Division during its review of the 2023-24 audit report.

Chaired by Junaid Akbar Khan, the committee examined audit paras related to the Ministry of Planning, Development and Special Initiatives for FY2023-24 and scrutinised Appropriation Accounts for FY 2022-23. Members raised questions about unexplained expenditures, misallocated development funds and procedural violations in key public projects.

The committee was visibly disturbed upon learning that the ministry’s supplementary grant exceeded the original allocation by 134 percent. The planning secretary attributed Rs39 billion in additional expenditures to emergency flood relief operations, the 2022 national census, and reallocation of World Bank funds on the prime minister’s directives.

PAC member Khawaja Sheraz opposed accepting the audit objection, while Syed Naveed Qamar criticised the ministry’s unclear data: “The figures presented are incomprehensible. Is there any coherent strategy behind this?” He dismissed the need for further inquiry, calling the irregularities self-evident.

The PAC learned that Rs220 million lapsed after a PM event was cancelled. The planning secretary called it a “public welfare” initiative, but members decried poor planning.

While examining the audit para related to Bhara Kahu Bypas, the committee expressed serious concern over financial mismanagement in the project, which resulted in a loss of Rs2.47 billion to the National Logistics Cell (NLC) due to flaws in the contract awarded by the Capital Development Authority (CDA). According to audit officials, the CDA awarded the project to NLC for Rs6.51 billion. However, the project’s cost surged to Rs8.82 billion due to design and scope changes.

Responding to queries, NLC officials explained that the length of the bridge was increased by 315 meters and that legal proceedings initiated by Quaid-e-Azam University led to project delays.

While examining the audit report of the NLC, the PAC raised serious concerns over irregularities worth Rs3.2 billion in steel procurement. According to audit officials, the NLC signed a contract with a company at Rs108,000 per metric ton for steel, but the price was later increased to as high as Rs298,000 per ton without a competitive process.

Examining another audit para, the PAC showed concern over failure to provide expenditure records for funds disbursed to district administrations in 157 districts during the recent population and housing census. According to audit officials, the Planning Division had disbursed Rs8.69 billion to district administrations for census-related activities. However, no proper accounting was done for the unutilised funds.

The committee concluded an audit objection regarding missing digital tablets purchased for the national census, after officials clarified that only 24 out of 126,000 devices remain unaccounted for. The audit officials had reported that 219 tablets provided for the census were initially declared missing. However, the planning secretary clarified that 195 have since been traced, and only 24 are still unlocated.