Audit 2022-23 published, highlights missing records, procedural breaches across 128 institutions
Financial irregularities worth billions have been uncovered in southern Punjab’s local government institutions, according to the Auditor General of Pakistan’s 2022-23 audit report released on Saturday.
The audit, which covered 128 local public institutions across the region, identified widespread problems including missing financial records, procedural violations and pension-related irregularities.
The main finding related to records worth Rs 12.87 billion which were not produced for audit in 53 cases. Procedural irregularities amounting to Rs 9.14 billion were identified in 368 cases, while other financial issues totaling Rs 101.42 billion were flagged in 472 cases.
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The report also documented fraud and misappropriation of Rs 14.2 million in three cases, along with pension-related irregularities involving Rs 95.8 million in three more cases.
A major concern highlighted in the audit was the absence of effective internal controls. The report found that districts in southern Punjab lacked functioning internal audit departments, with mismanagement and negligence cited as key contributors to the financial lapses.
Although audit teams reported recoveries of over Rs7.1 billion, only Rs114.5 million of the amount recovered could be verified, according to the report.
The audit report issued a series of directives to the Principal Accounting Officers (PAOs) to remedy the irregularities identified. These include producing missing records, taking action against officials responsible for their non-production and conducting investigations to address responsibility for fraud, misappropriation and wasteful expenditure.
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PAOs have been directed to expedite recovery of public revenue and investigate cases of unauthorized use of administrative and financial powers. The report emphasizes strict adherence to 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 proper monitoring mechanisms are in place. The report also mandates submission of life certificates for pensioners and no resumption certificates for family pension cases.
