Rs 110 Crore Fake Invoicing Scandal Hits Pakistan Railways


Investigation Finds Unjustified Charges in LESCO’s Inflated Invoices; officials paid millions blindly without verification

LAHORE:

A major financial irregularity has come to light in the Pakistan Railways, showing that more than Rs 110 million in fake electricity payments were made after allotment of fake residential quarters.

According to an investigative report obtained by Express News, the Directorate of Railway Vigilance confirmed that Lahore Electric Supply Company (LESCO) issued inflated and unjustified electricity bills for three residential colonies of Railways in 2023.

The report, completed by the Director General of Vigilance and sent to Pakistan Railways CEO Aamir Ali Baloch, stated that although LESCO had installed individual meters in every quarter, the company continued to send consolidated collective invoices to the Railways administration.

These included excessive fixed charges and adjustments that investigators say led to more than Rs 110 million being fraudulently charged.

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The investigation further revealed that the Electrical Department of the Railway Workshops Division made payments to LESCO without carrying out any verification, control or investigation. Officials responsible for reviewing the invoices allegedly processed the payments blindly, causing substantial financial losses to the department.

The report cited negligence on the part of the Divisional Electrical Engineer (Works), the Senior Electrical Engineer (Workshops) and the electrician, and noted that their lack of basic supervision facilitated the bogus payments.

He also pointed out that many of the officials involved have been holding the same positions for several years, despite the Railways’ rotation policy, which was not implemented.

The Vigilance Directorate has recommended strict departmental action against the officials responsible for dereliction of duty and urged immediate implementation of the rotation policy to avoid similar cases in the future.

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