The Auditor General of Pakistan (AGP) has pointed out alleged irregularities in the award of a Rs. 43.207 million project by the Universal Service Fund (USF) Company to Pakistan Telecommunication Company Limited (PTCL) for the provision of optical fibre connectivity in two union councils of Quetta.
According to the audit report, the project was awarded in violation of the applicable Request for Applications (RFA), while deficiencies in planning and documentation raised concerns over the execution of the work.
The report states that under Rule 23 of the USF Rules, 2006 (amended in 2023), every project must be supported by a comprehensive project plan containing service requirements, specifications, implementation schedules and other essential details. The audit observed that the USF signed an agreement worth Rs. 43,207,217 with PTCL on September 26, 2023, to provide 7.7 kilometres of optical fibre cable connectivity for the Baleli (PTCL-Samungli-Nohsar) and Nohsar-Aghbarg areas in Quetta, targeting an unserved population of 28,658.
According to the audit, PTCL submitted a declaration of good standing with the Pakistan Telecommunication Authority (PTA) dated April 24, 2008, which was considered invalid for the 2023-24 financial year. The report further noted that the declaration had been approved by the PTA chairman instead of the Authority, contrary to the requirements of Section 3(9) of the Pakistan Telecommunication (Re-organization) Act, 1996, as amended.
The audit also highlighted deficiencies in project planning and technical documentation. It noted that the record merely mentioned the words “duct” and “buried” without a proper route diagram during planning or an “as-built laying diagram” after completion of the optical fibre cable installation. Although the in-house technical auditor verified physical parameters such as trench depth, HDPE pipe placement, warning tape and backfilling, the audit maintained that it could not independently verify the completed work in the absence of the required diagrams showing excavation, node locations and route indicators.
Another observation concerned the right of way (RoW) approval. The report stated that PTCL offered the project milestone on December 1, 2023, whereas the Metropolitan Corporation Quetta issued the RoW no-objection certificate (NOC) on December 26, 2023. The audit also noted that no invoice relating to the right of way charges was available on record. It concluded that the project had been awarded without adequate planning and assessment, while execution without the prescribed route and as-built diagrams cast doubt on the verification of the work performed.
The audit reported the matter to USF management and the principal accounting officer in October 2024. In its reply, the management maintained that the declaration referred to by the audit was not a mandatory proposal document and asserted that the required as-built diagrams and RoW documents had been submitted with the project milestone.
However, the audit rejected the explanation, stating that the management itself acknowledged the requirement for a valid PTA good standing declaration and as-built diagrams, while the declaration submitted was outdated and the relevant diagrams were unavailable on record.
The Departmental Accounts Committee (DAC), in its meeting held on December 12, 2024, directed the USF to seek clarification from the PTA regarding the declaration and provide all relevant records to the audit. According to the report, no further progress had been communicated by the time the report was finalised, and the audit recommended implementation of the DAC’s directives.
