Islamabad – Auditor General of Pakistan has unearthed cases of embezzlement/misappropriation, irregularities, and non-recovery amount Rs2.536 trillion in the account of Public Sector Enterprises (PSEs) established / controlled by federal government.
The Directorate General of Commercial Audit & Evaluation (North & South) carries out audit and evaluation of Public Sector Enterprises (PSEs) established / controlled by federal government, which maintain their accounts on commercial basis.
According the Audit Report of the Public Sector Enterprises (PSEs) for the audit year 2024-25, broadly, the AGP has unearthed 18 cases of embezzlement / misappropriation of funds amounting to Rs3,576.262 million, 134 issues related to irregularities in 134 HR / employees (Rs16,965.690 million), 137 cases of mis-procurement due to violation of rules, procedures & regulations (Rs185,828.117) million. 13 cases of imprudent investments leading to loss of Rs25,328.945 million, 130 cases of non-recovery (Rs861,837.666 million). In two cases, management did not produce auditable record, in 30 cases value for money was compromised involving Rs40,913 million.
Audit observations of Rs165,534.535 million were raised related to Public Sector Enterprises (PSEs) established / controlled by Aviation Division. This amount also includes recoverable amounts of Rs24,007.973 million, as pointed out by the audit.
Audit observations of Rs49,900.531 million were raised related to Public Sector Enterprises (PSEs) established / controlled under the Cabinet Division. The amount also includes recoverable of Rs4,418.920 million.
Audit observations of Rs881,879.431 million were raised related to the PSEs established/controlled by Ministry of Commerce and Textiles. This amount also includes recoverable of Rs450,873.061 million as pointed out by the audit.
Audit observations amounting to Rs141,473.762 million were raised pertaining to the PSEs established/controlled by the Ministry of Defence Production, which also includes recoverable of Rs1,803.604 million as pointed out by the audit.
Audit observations amounting to Rs722,978.830 million were raised regarding the PSEs established/controlled under Finance Division. This amount also includes recoverable of Rs278,006.716 million as pointed out by the audit.
Audit observations amounting to Rs250,495.672 million were raised related to the PSEs established/controlled under Ministries of Industries and Production, which also includes recoverable of Rs14,812.781 million as pointed out by the audit.
Audit observations amounting to Rs1,233.303 million were raised pertaining to Ministry of Information Technology related PSEs, which also includes recoverable of Rs7.397 million.
Audit observations amounting to Rs11,954.293 million were raised pertaining to the PSEs under Ministry of Information, which also includes recoverable of Rs1,977.666 million as pointed out by the audit.
Audit observations amounting to Rs36,137.711 million were raised pertaining to the PSEs established/ controlled by Ministry of Interior, which also includes recoverable of Rs6,644.064 million as pointed out by the audit.
Audit observations of Rs69,658.937 million were raised related to Ministry of Maritime Affairs, which also includes recoverable of Rs17,161.300 million as pointed out by audit
Audit observations amounting to Rs316,426.857 million were raised related to the PSEs under Ministry of National Food Security and Research, which also includes also includes recoverable of Rs216,036.222 million as pointed out by the audit.
Audit observations amounting to Rs57,102.339 million were raised related to the establishments controlled by Ministry of Planning, Development and Special Initiatives, which also includes recoverable of Rs1,978.780 million as pointed out by the audit.
Audit observations amounting to Rs599.518 million were raised regarding the PSEs established/controlled by the Ministry of Science and Technology, which also includes recoverable of Rs54.078 million as pointed out by the audit.
The AGP recommended internal control structure needs to be strengthened to curb the incidence of embezzlement, fraud and misappropriation. Appointments should be made in transparent manner and according to the respective HR policies of the organizations with due regard to the government policies on the subject.
Procedure of procurement in public sector enterprises should be streamlined to achieve economy, efficiency and value of money as per Public Procurement Rules, 2004.
Efforts should be made by the management to improve its fund management with commercial banks with respect to investments. PAOs should make efforts for early realization of receivables. All expenditure should be incurred after due diligence keeping in view the sense of probity & propriety. Procedure of procurement in public sector enterprises should be streamlined to achieve economy, efficiency and value of money as per Public Procurement Rules, 2004. Efforts should be made by the management to improve its fund management with commercial banks with respect to investments. PAOs should make efforts for early realization of receivables. x. Record should be provided to Audit besides fixing responsibility on the person(s) at fault.
