NUML maintained 16 bank accounts holding Rs1.04 billion without finance division approval, audit finds

The National University of Modern Languages (NUML) maintained 16 bank accounts containing more than Rs1.039 billion without approval

Islamabad:  The National University of Modern Languages (NUML) maintained 16 bank accounts containing more than Rs1.039 billion without approval from the Finance Division, while Rs7.1 million was paid in excess salaries to six retired military personnel, according to the Auditor General of Pakistan’s audit report for 2025 to 2026.

The audit also questioned the appointment of NUML’s Director General and Pro Rector, stating that the officer belonged to the Baloch Regiment instead of the Army Education Corps, as required under the university’s law.

The findings have raised questions about financial control, public money and the implementation of appointment rules at the Islamabad based university.

According to the audit, NUML had Rs1,039,656,124 in 16 bank accounts as of June 30, 2024. These accounts included funds for student fees, scholarships, the library, security, pensions, provident funds, employee advances and accommodation for female students.

The largest balance was Rs268.58 million in the account for fees from functional courses. The pension fund held Rs233.76 million, while the General Provident Fund contained Rs112.47 million. Another account for M Phil and PhD fees held Rs97.63 million.

The audit found that these accounts had been opened without approval from the Finance Division. It also said the university was not operating the accounts through the Treasury Single Account system, which is meant to bring government funds under a central cash management system.

Under the Cash Management and Treasury Single Accounts Rules 2024, existing bank accounts were required to be reviewed jointly by the Finance Division and the relevant department. Accounts found unnecessary were to be closed and their balances transferred to the Federal Consolidated Fund or Public Account under the prescribed procedure.

The audit said NUML’s failure to follow these requirements violated public finance rules and was irregular and unjustified.

University management argued that NUML was an autonomous institution established under a Presidential Ordinance in 2000 and managed its academic and administrative affairs independently.

However, auditors rejected this explanation, saying NUML was specifically included in the Treasury Single Account system under the Finance Division’s notification issued on January 31, 2023.

The audit recommended that all commercial bank accounts should be approved or closed and their balances transferred to the Treasury Single Account.

In a separate finding, the audit reported that six retired personnel appointed on contract received Rs7,106,800 in excess salaries during the financial year 2024 to 2025.

The university had approved a basic pay scale for regular employees and a separate contractual pay structure. However, auditors found that the salaries of the retired personnel had been fixed according to a pay package issued by the Military Welfare and Rehabilitation Directorate.

According to the report, that package was meant for retired personnel re employed in Defence organisations and was not applicable to employees of a civilian public sector university funded by the Higher Education Commission.

The six employees included the Director Administration, Director Human Resource, Director Regional Services, Additional Director Planning and Infrastructure, Staff Officer and Management Trainee Officer.

The Director Administration and Director Human Resource each received an additional Rs1.60 million over eight months. The Director Regional Services and Additional Director Planning and Infrastructure each received Rs934,656 in excess payments.

The Staff Officer was also shown as receiving Rs934,656 in excess payments, while the Management Trainee Officer received Rs1.08 million.

The audit declared the use of the military pay package for these appointments irregular and unauthorised. It said the matter was reported to university management on October 16, 2025, but no reply had been received by the time the report was finalised.

Auditors recommended recovery of the excess Rs7.1 million and directed the university to ensure that future contractual appointments and salaries follow its approved pay structure.

The report also questioned the appointment of a Brigadier as NUML’s Director General and Pro Rector on October 1, 2023.

Section 11 of the NUML Ordinance 2000 states that the Director General must be a language qualified Brigadier from the Army Education Corps and must be appointed by the Chairman of the Board.

The audit found that the appointed officer belonged to the Baloch Regiment, an infantry regiment, rather than the Army Education Corps. It therefore declared the appointment inconsistent with the university’s law and recommended that the Board of Governors review it.

The matter was reported to management on November 5, 2025, but the audit report said no reply had been received before its finalisation.

The Auditor General recommended that all future appointments must strictly follow the NUML Ordinance.