AGP unearths Rs270bn irregularities, embezzlement in federal ministries.

ISLAMABAD -- The Auditor General of Pakistan (AGP) has unearthed misappropriation and embezzlement of public funds in various ministries to the tune of over Rs12 billion, with irregularities of government funds amounting to Rs258bn.

The AGP's report covers the fiscal year 2018-19 - the first year of the Pakistan Tehreek-i-Insaf government - and recommends strict action, including references, to investigation agencies against those responsible.

The AGP has finalised its report on Audit Year 2019-20 and it would be submitted to parliament and the president in a couple of days. The report also disclosed that record for a number of entities and accounts was not given to audit teams in violation of rules.

A government minister while commenting on the audit report said that such irregularities during the period of past governments used to involve up to Rs1,000bn. Geo TV quoted Minister for Industries Hammad Azhar as saying the graph had come down by 80 per cent but added that the PTI government needed to improve it further.

Recommends strict action against those involved; minister says graph of irregularities has dropped

The audit report identified 56 cases of misappropriation and embezzlement of public funds and fictitious payments amounting to Rs12.561bn. In addition, there were 98 cases involving recovery of Rs79.59bn and 37 instances of non-production of record of Rs17.97bn.

Likewise, the audit unearthed 35 cases pertaining to weak financial management amounting to Rs152.21bn. The AGP put on record that audit paras for the Audit Year 2019-20 involving procedural violations, internal control weaknesses and irregularities which were not considered significant for reporting were not being reported to Public Accounts Committee of the National Assembly.

Based on these findings, the audit has proposed to the government to ensure that no expenditure be incurred without budgetary cover and authorisation by the parliament and supplementary grants should not be issued without need assessment and approval from parliament before close of financial year.

The AGP also recommended to the parliament that cases of serious embezzlement of public money be sent to investigation agencies and the government should be directed that retained government receipts and unspent balances be deposited into the government treasury wherever applicable.

The Audit has also sought strengthening of internal control system to reduce risks and internal audit and printing of its...