Publicly released 2022-23 audit finds missing files and procedural violations at 128 institutions
Financial irregularities worth billions have been exposed in local government institutions in southern Punjab, according to the Auditor General of Pakistan’s audit report for 2022-23, released on Saturday.
The audit, covering 128 local government institutions across the region, identified widespread problems, including missing financial documents, procedural violations and pension-related irregularities.
The biggest finding was that records worth Rs 12.87 billion were not produced for audit in 53 cases. Procedural irregularities amounting to Rs9.14 billion were identified in 368 cases, while other financial issues totaling Rs101.42 billion were reported in 472 cases.
Read: Audit reveals major security lapses in Punjab’s model police stations
The report also documented fraud and embezzlement amounting to Rs14.2 million in three cases, as well as pension-related irregularities involving Rs95.8 million in three other cases.
One of the main concerns highlighted during the audit was the lack of effective internal controls. The report reveals that southern Punjab districts did not have functional internal audit services, with mismanagement and negligence cited as major contributors to financial failures.
Although audit teams reported recoveries exceeding Rs7.1 billion, only Rs114.5 million of the recovered amount could be verified, the report said.
The audit report issued a series of guidelines to Principal Accountants (PAOs) to address the irregularities identified. These include producing missing documents, taking action against officials responsible for their failure to produce them, and conducting investigations to determine responsibility for fraud, embezzlement and wasteful spending.
Learn more: Irregularities discovered during health care audit
The PAOs were tasked with expediting government revenue collection and investigating cases of unauthorized use of administrative and financial powers. The report emphasizes strict compliance with Punjab procurement rules for all purchases of goods and services.
To prevent future irregularities, local governments must establish effective internal control systems and ensure that appropriate monitoring mechanisms are in place. The report also demands the submission of life certificates for retirees and no remarriage certificates for family pension cases.
