The Auditor General of Pakistan (AGP) has identified audit observations totaling Rs. 599.93 million within the Establishment Division, citing employee-related irregularities, non-recovery issues, and the management of accounts with commercial banks. These findings were detailed in the AGP’s Audit Report for the federal government’s civil accounts for the audit year 2023-24.
The report breaks down the audit observations as follows: Rs. 8.66 million related to human resources and employee irregularities, Rs. 14.539 million concerning the management of accounts with commercial banks, Rs. 173 million on recovery issues, Rs. 51.90 million on internal recovery, and Rs. 351.734 million on other matters.
For the financial year 2022-23, the Establishment Division was allocated a final budget of Rs. 6.580 billion, of which Rs. 6.500 billion was expended. The audit noted an overall saving of Rs. 80.37 million, primarily due to savings in the current grant. However, it criticized the use of supplementary grants, which were obtained without adequate cash forecasting.
According to the General Financial Rules, authorities should exercise utmost foresight when framing budget estimates. The audit observed a 63.09% saving in the development grant, which was eventually reduced to a 0.05% saving, while the current grant saw a 2.26% excess that became a 1.25% saving.
The audit also highlighted irregularities in the appointment of staff. The Establishment Division spent Rs. 8.665 million on salaries for 28 Contingent Paid Staff (CPS) during the fiscal year 2022-23, contrary to the Finance Division’s instructions to appoint staff on a regular basis. This practice was deemed irregular and unauthorized.
Additionally, the AGP reported a non-recovery of outstanding rent from the Utility Stores Corporation amounting to Rs. 12.379 million. The Islamabad Rent Restriction Ordinance, 2001 mandates a 25% rent increase every three years, which was not applied. The Staff Welfare Organization (SWO) properties, intended for Federal government employees’ welfare, were rented to the Utility Stores Corporation since 1975 without a formal lease agreement. The audit found that Rs. 20,275,292 was due, with only Rs. 7,896,240 paid, leaving Rs. 12,379,052 recoverable.
The AGP criticized the management for failing to recover the outstanding rent and for not formalizing a lease agreement with the Utility Stores Corporation, highlighting significant lapses in financial governance and compliance.
