LAHORE:
An audit report revealed that the Punjab Finance Department did not release more than RS2 billion funds for the development of the sugarcane sector in the last provincial budget in violation of the cessation rules of the sugarcane (development) of Punjab, 1964.
According to the rules, a fund, the Sugar Caña Development Fund, in each district of the province is created. The bottom of each district is operated by the DCO in question.
The Finance Department releases funds to the respective DCO after the 10% deduction of the total collection of the CES for the Sugar Caña Research and Development Board and the deduction of 2% collection charges.
According to the Pakistan General Auditor’s report, it occurred during the audit of the civil accounts of the June 2023 Finance Department that there was a responsibility of RS20,335,026,047 under “G-1212 Deposits in the Sugar Caña Development C-Development Fund”. “The Punjab cane commissioner had deposited an amount of RS5,090,152,163 in the-I account with the purpose of a subsequent distribution of funds.
“Although the Finance Department had not published the authority for payment, the DAO Faisalabad and Vehari made payments of 55,286,766 and Rs. 28,682,577 respectively.”
In addition, 2% collection charges were not incorporated into the budget either. The auditor said it is the opinion that the period occurred due to the weak administrative and financial controls. He said that the matter was also reported to the Administrative Department and during a meeting of the Departmental Accounts Committee (DAC) held on January 30, 2025, it was decided that it should be kept pending until the SOPS/politics are formulated in consultation with the interested parties.
“As for the remaining paras, no response was received or a DAC meeting called until the end of this report despite the issuance of reminders in November and December 2024.”
The audit recommended an adequate allocation and use of the Sugar Caña Development C -C -Development Fund, in accordance with the specified rules. “[These allocations and utilizations] They are imperative to ensure that the planned development projects are carried out efficiently and transparently, “he added.
