AGP uncovers Rs836.43 billion in financial irregularities in Sindh government departments

The Auditor General of Pakistan (AGP) has revealed financial irregularities worth over Rs836.43 billion across various departments of the Sindh government, The News reported.  

The audit report for the fiscal year 2023–24, part of the 2024–25 audit cycle, highlights corruption, mismanagement, and weak financial controls in provincial institutions.

The report lists various issues, including Rs97.865 billion in unproduced records, Rs1.088 billion in fraud and embezzlement, Rs32.122 billion in irregular hiring practices, and Rs55.408 billion in procurement-related irregularities. Further, Rs42.101 billion was flagged for issues with managing accounts in commercial banks, while Rs19.406 billion in value-for-money discrepancies and Rs65.012 billion in operational inefficiencies were also identified.

Despite the identification of recoveries totaling Rs56.53 billion, only Rs785.795 million was verified. The report indicates that several inquiries are underway, with 31 investigations ordered against individuals responsible for these irregularities, while 22 inquiries are also being conducted by Departmental Accounts Committees (DACs) on audit findings.

The Sindh Finance Department was found to have committed Rs66.556 billion in financial irregularities, including improper payments of pensions and other benefits, unauthorized recruitments, and failure to implement proper oversight. 

Additionally, the Sindh Board of Revenue (BoR) underperformed in revenue generation, missing targets by Rs55.187 billion, and the Energy Department failed to recover Rs27.867 billion from power companies.

The audit report also highlighted failures in other key sectors. The Sindh Solar Energy Project, despite spending Rs5.294 billion over four years, has yet to complete any of its components. Other sectors like Health, Education, Irrigation, Works and Services, and Agriculture were flagged for irregular expenditures totaling billions of rupees, largely due to poor planning, fraud, and misappropriations in procurement processes.

The Chief Minister’s Secretariat was noted for an irregular Rs100 million payment to the NGO ‘JDC Foundation,’ while the College Education Department was found to have disbursed Rs1.5 billion without fulfilling necessary formalities.

The AGP has recommended disciplinary action for officials involved in the mismanagement, including strengthening internal audits and ensuring compliance with procurement rules. 

A spokesperson for the Sindh government clarified that the audit report’s findings are preliminary and will be reviewed by the respective departmental committees and addressed through the Public Accounts Committee (PAC). Any proven wrongdoing will be subject to recovery and disciplinary or legal action.