Lahore:
An audit report has revealed that Punjab’s financial department did not release over RS2 billion.
According to the rules, a fund – the sugar cane development fund – is created in each district in the province. The fund for each district is run by the DCO in question.
The finance department releases funds for the respective DCO after deduction of 10% of the total collection of Cess for Sugarcane Research and Development Board and deduction of 2% collection fees.
According to the auditor in the Pakistan report, it was done during the audit of the Financial Department’s civil accounts from June 2023 that there was a responsibility on RS20.335.026.047 under “G-11212-DePosits on the Sugarcane Development Ship Fund”. “The Cane Commissioner of Punjab had deposited an amount of RS5.090.152.163 in Account-I for the purpose of subsequently distribution of funds.
“Although the Finance Department had not released the Authority for Payment, Dao Faisalabad and Vehari made payments of 55,286,766 and Rs. 28,682,577, respectively.”
In addition, 2% collection taxes were also not incorporated into the budget. The auditor said it is of the opinion that lapse occurred due to weak administrative and financial control. It said the case was further reported to the administrative department, and under a departmental account committee (DAC) meeting held on January 30, 2025, it was decided that the para should be held pending until the SOPS/policy was formulated in consultation with stakeholders.
“As for the remaining paras, neither a response was received or a DAC meeting called for the completion of this report despite the issuance of reminders in November and December 2024.”
The audit recommended correctly allocation and use of the Sugarcane Development Cess Fund in accordance with the specified rules. “[These allocations and utilizations] is imperative to ensure that the intended development projects are performed efficiently and transparently, ”added it.
