Home National AGP points out Rs25 billion irregularities in armed forces’ financial affairs

AGP points out Rs25 billion irregularities in armed forces’ financial affairs

AGP points out Rs25 billion irregularities in armed forces’ financial affairs

Irregularities of around Rs25 billion have been detected in the financial affairs of the armed forces.

According to reports, the Auditor General of Pakistan (AGP) issued the audit report on the account of defence forces for the audit year 2021-22. According to the report, irregularities of Rs21 billion have been detected in the accounts of the Pakistan Army, Rs1.6 billion in the accounts of the Pakistan Air Force (PAF) and Rs1.6 billion in the Pakistan Navy’s accounts.

The report has further stated that irregularities of Rs66 million have been pointed out in inter-services organizations, Rs203 million incurred by Military Accountant General while Military Lands and Cantonments were subject to irregularities of Rs2 billion.

Army formations’ audit found irregularities in process of tendering where different items had been procured without open competition due to which there were irregularities of Rs18 billion. Goods and services were procured without following the Public Procurement Rule resulting in irregularity of Rs2 billion.

According to the AGP report, irregularities of Rs290 million had been caused due to the mis-procurement of medicines and irregular award of contracts.

The audit report has further stated that the PPRA Rules-2004 were violated by the Pakistan Air Force by using Sui gas irregularly for the generation of electricity to the tune of Rs610 million.

It also said that Rs481 million were pointed in irregular overtime and conveyance allowance payments, Rs181 million in unauthorized sports equipment purchases, Rs102 million in unauthorized sports complex construction expenditures, and Rs83 million in unauthorized cruise boat purchases.

The report has also pointed improper supply of Rs52 million with electricity to the Air Force Officers Housing Scheme (AFOHS), Rs38 million received on account of the hospital development fund, Rs15 million spent on grounds maintenance, Rs12 million irregular benefit awarded to contract due to advance payment, and Rs4 million spent on a fitness club.

Irregularities of Rs1.6 billion were found in Pakistan Navy’s accounts, while inter-services organizations incurred embezzlement of Rs40 million because of unauthorized procurement of gifts/souvenirs while Rs26 million was spent for purchase of stationary items from non-participant suppliers.

The AGP report has identified major issues including non-production of record, violating Public Procurement Rules 2004, non-provision of public and municipal services, weak internal control, non-adherence to rules and regulations, non-withholding of income and sales tax and its deposit into the public exchequer, lack of transparency in local procurement, health services, irregular conclusion of contracts for defence production of weapons and equipment and systematic issue of advance payment in defence procurement.


Please enter your comment!
Please enter your name here