PESHAWAR – An official audit report has identified financial irregularities in local government funds in Khyber Pakhtunkhwa, highlighting unresolved recovery cases amounting to over Rs354.12bn from 2002 to 2025.
The audit spans various fiscal years across successive governments and raises concerns about consistent lapses in financial oversight within the local government structure.
According to the audit documents, the breakdown of unrecovered funds includes Rs459mn in 2002-03, Rs358mn in 2003-04, Rs1.793bn in 2004-05, Rs1.358bn in 2005-06, Rs1.682bn in 2006-07, Rs3.134bn in 2007-08, Rs2.382bn in 2008-09, and Rs4.415bn in 2009-10.
The pattern continued in subsequent years with Rs2.622bn in 2010-11, Rs1.914bn in 2011-12, Rs8.417bn in 2012-13, Rs7.381bn in 2013-14, Rs3.184bn in 2014-15, Rs6.989bn in 2015-16, Rs32.141bn in 2016-17, and Rs31.018bn in 2017-18.
The audit further lists Rs25.934bn in 2018-19, Rs34.099bn in 2019-20, Rs37.065bn in 2020-21, Rs52.438bn in 2021-22, Rs52.595bn in 2022-23, and Rs39.504bn each for 2023-24 and 2024-25, all of which remain unrecovered according to the report.
Among the larger discrepancies, the report cites Rs7.5bn in 2013-14 and Rs7.52bn in 2015-16 as years with especially high levels of unaddressed financial issues.
Sources within the Auditor General’s office observed that despite multiple local government cycles, essential oversight mechanisms such as tehsil accounts committees and a fully empowered public accounts committee have not been consistently implemented. The 2019 amendment to the local government act recommended establishing tehsil-level committees with the authority to review audit reports, budgets, and financial disclosures. However, the audit notes these committees are yet to be formed.
Officials familiar with the audit process stressed that unless systematic reforms are introduced, similar observations are likely to reappear in future reports. They called for stronger mechanisms to ensure transparency, regardless of which party holds power.
The report also mentions ongoing scrutiny of various government-led projects, including the Kohistan case, the Citizens Improvement Project, and projects under the education and public health departments, where alleged financial mismanagement has been raised in the past.
It is important to note that while the report highlights serious concerns, the responsibility for recovery and legal follow-up lies with relevant government departments and oversight bodies.
The audit does not assign blame to any specific individuals but calls for a more consistent approach to financial accountability and institutional strengthening.
The findings on financial irregularities in local government funds in Khyber Pakhtunkhwa underscore the need for improved governance across all levels of the provincial administration.
