2022-23 audit becomes public and points out missing records and procedural violations at 128 institutions
Financial irregularities worth billions have been exposed in local government institutions in southern Punjab, according to the Auditor General of Pakistan’s audit report for 2022-23, which was made public on Saturday.
The audit, which covered 128 local government institutions across the region, identified widespread problems including missing financial records, procedural violations and pension-related irregularities.
The most significant finding related to records worth Rs 12.87 billion that were not submitted for audit in 53 cases. Procedural irregularities worth 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 worth Rs 14.2 million in three cases, along with pension-related irregularities worth Rs 95.8 million in three other cases.
A major concern highlighted in the audit was the absence of effective internal controls. The report found that southern Punjab districts lacked functioning internal audit departments, with mismanagement and negligence cited as key factors contributing to financial failures.
Although the audit teams reported recoveries exceeding Rs 7.1 billion, according to the report, only Rs 114.5 million of the recovered amount could be verified.
The audit report issued a series of directives to the chief accountants (PAO) to address the irregularities identified. These include producing missing records, taking action against officials responsible for their non-production, and conducting investigations to determine liability for fraud, misappropriation, and unnecessary expenses.
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The PAOs have been instructed to expedite the recovery of government revenues and investigate cases of unauthorized use of administrative and financial powers. The report emphasizes strict compliance with the 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 adequate monitoring mechanisms are in place. The report also requires the presentation of life certificates for pensioners and the absence of new marriage certificates for family pension cases.
