AGP Reports Unauthorized Payments of Over Rs. 16 Million by PCB to Board of Governors

AGP Reports Unauthorized Payments of Over Rs. 16 Million by PCB to Board of Governors

The Auditor General of Pakistan (AGP) observed that the Pakistan Cricket Board (PCB) made unauthorized payments of meeting and daily allowances to the members of the Board of Governors (BOG) amounting Rs 16.386 million.

AGP in the audit report for the audit year 2023-24 noted that regulation 2 (C) of the Regulation for PCB Board of Governor’s Entitlements states that the BOG Member shall be entitled to payment of the following daily allowances when required to travel outside of Lahore on official duty, the Chairman shall be entitled to Daily Allowances as detailed: (a) Domestic Rs. 10,000 per day (For outstation only), (b) International (Worldwide) US$ 300 with accommodation to be arranged by PCB, (c) International (UK) US$ 400 with accommodation to be arranged by PCB.

Regulation 2(D) of the Regulations for PCB Board of Governor’s Entitlements states that in the event any BOG Member is required to participate in meetings, as a member of any PCB Committee, they will be paid a Committee Member Allowance amounting to Rs 10,000 (Pakistan Rupees Ten Thousand only).

The Pakistan Cricket Board paid Meeting and Daily Allowances amounting to Rs.11,725,000 @ Rs. 25,000 and Rs. 10,000 to the four members of the BOG/ Management Committee during the financial year 2022-23 as detailed below:

Shakil Ahmad Shaikh was paid a total allowance of Rs 4,260,000 including Rs 2,700,000 as meeting allowance and Rs1,560,000 daily allowance. Muhammad Haroon Rashid Dar was paid a total of Rs 3,505,000 in allowances including Rs 2,675,000 meeting allowance and Rs 1,030,000 daily allowance, and Aizad Sayid was paid a total of Rs 3,960,000 in allowance. He was paid meeting and daily allowances for 116 days from 23.01.2023 to 18.06.2023. Najam Sethi was paid Rs 4,660,605 in total allowance including Rs 2,650,000 meeting allowance and Rs 2,010,605 as daily allowance.

Audit observed that only five meetings of the BOG were held on 23.12.2022, 31.12.2022, 13.03.2023, 13.06.2023, and 14.06.2023 during December 2022 to June 2023 whereas the above-mentioned members were paid meeting and daily allowances for the entire month of February (28 days), March (31 days), April (30 days) and June (18 days). Further Aizad Sayid, a Member of the Management Committee from Lahore was paid meeting and daily allowances @Rs 25,000 and Rs 10,000 respectively. Payment of daily allowances amounting to Rs. 1,060,000 to Aizad Sayid, was also not admissible to local members who did not travel outside Lahore to attend a meeting of the management committee.

The audit further observed that meeting allowance was claimed at Rs 25,000 instead of Rs 20,000 resulting in payment of Rs 1,655,000 to Shakil Ahmad Shaikh, Muhammad Haroon Rashid Dar, and Aizad Sayid. Audit is of the view that payment of meeting and daily allowance over and above the prescribed period and at a higher rate was unauthorized which resulted in the loss of Rs 11.725 million to the Board.

The management replied that BOG was replaced with the Management Committee with Executive Powers that enhanced the rate of TA/DA.

AGP observed that the reply was not accepted because the payment was irregular. Furthermore, TA/DA should not be a source of income. DAC in its meeting held on 18.01.2024 directed to recover the excess amount paid under intimation to Audit. The audit recommended that an inquiry be conducted for unauthorized payment of meeting and daily allowances and the overpaid sums recovered.