ISLAMABAD: A startling financial scandal has hit the Private Educational Institutions Regulatory Authority (PEIRA) after an official audit revealed that its chairperson and two senior members allegedly drew over Rs35 million in illegal payments through unauthorized allowances and inflated salary packages, far exceeding the limits set by the federal government.
According to the Auditor General of Pakistan’s report, the Chairperson PEIRA alone received Rs18.18 million in excess payments, while two members collectively pocketed another Rs16.73 million under irregular salary heads during the financial year 2023–24.
The report points out that under Rule 10 of the Islamabad Capital Territory Private Educational Institutions (Appointment and Qualifications) Rules, 2015, the pay package of PEIRA’s chairperson and members must strictly follow the salary structure approved by the Federal Government. However, the chairperson, appointed under MP-II Scale through a Ministry of Federal Education and Professional Training notification dated March 29, 2023, drew salaries and perks under multiple heads that were not authorized in the MP-II pay package.
While the legitimate MP-II scale pay and allowances for the chairperson amounted to Rs3.66 million, the audit found that a total of Rs21.84 million was withdrawn, creating an illegal excess of Rs18.18 million.
Audit authorities described the withdrawals as “irregular, unauthorized, and in violation of federal pay regulations.” The Departmental Accounts Committee (DAC), in its meeting held on December 3, 2024, ordered the immediate discontinuation of extra allowances and directed full recovery of the illegally drawn amount to the federal treasury.
The scandal deepened further as auditors uncovered that PEIRA’s two senior members — Member (Academics) and Member (Registration), had also been drawing salaries and allowances well above approved government rates.
In a self-approved decision on February 26, 2024, the PEIRA management allegedly decided to extend enhanced benefits to all employees, including the chairperson and members — without obtaining the required concurrence of the Finance Division.
As a result, the two members received Rs7.88 million and Rs8.84 million, respectively, for 2023–24, covering unauthorized allowances such as 130% house rent, 50% medical allowance, 20% dearness and utility allowances, eight basic pays as honoraria, and Eid bonuses, all outside the prescribed government structure.
The audit observed that this self-sanctioned salary structure not only violated federal pay rules but also contravened PEIRA’s own governing framework, which binds the authority to seek prior approval from the Finance Division for any pay or allowance revisions.
In response, the PEIRA management claimed that its financial rules allow adoption of the pay structure of the Federal Board of Intermediate and Secondary Education (FBISE). However, the audit rejected this defense, noting that PEIRA is bound by federal rules and cannot independently alter salary structures or adopt those of other autonomous bodies.
The DAC directed PEIRA to stop all additional payments immediately, provide documentary proof of Finance Division’s concurrence, and recover the illegally paid amounts from the chairperson and both members.
Audit calls for full inquiry:
The audit has recommended a comprehensive investigation into the illegal disbursements and disciplinary action against officials responsible for approving and authorizing the payments. It further directed that the recovered amount be deposited into the federal treasury without delay and that the irregular practice of inflated allowances be discontinued permanently.
The revelations have sparked fresh concerns over financial mismanagement and lack of oversight within PEIRA, an organization meant to regulate hundreds of private schools and colleges in the Islamabad Capital Territory.
Observers say the scandal not only raises questions about personal integrity at the top but also exposes systemic weaknesses in government oversight of autonomous education bodies.
