Audit report uncovers Rs3.54 billion irregularities in SCO, telecom sector violations

Report highlights procurement issues, overpayments in SCO, misconduct by PTCL, overcharging by Jazz, and unresolved Rs53.54 billion case of Zong’s illegal spectrum use

An audit report by the Auditor General of Pakistan flagged Rs3.54 billion in irregularities concerning the Special Communications Organisation (SCO), highlighting procurement issues totaling Rs1.33 billion and overpayments of Rs2.21 billion due to inflated equipment prices and excessive operational costs, Dawn reported. 

The report also raised concerns about violations within Pakistan’s telecom sector, including misconduct by state-owned entities like PTCL and SCO, as well as major overcharging by Jazz, the country’s largest telecom operator.

According to the report, PTCL has repeatedly ignored audit requests and directives from the Supreme Court, the Public Accounts Committee (PAC), and the Auditor General, leading to allegations of financial irregularities. PTCL was found guilty of failing to settle dues and committing various other financial missteps while refusing to open its accounts for audit.

SCO, the telecom operator in Gilgit-Baltistan and Azad Jammu and Kashmir under the Ministry of IT & Telecom, was also flagged for the same Rs3.54 billion in irregularities, including procurement issues and overpayments.

Moreover, the report highlighted the unresolved issue of Zong’s illegal use of spectrum, a case valued at Rs53.54 billion, which remains under litigation, adding to concerns about the PTA’s ineffective oversight.

Profit reported on Wednesday that Jazz was found to have overcharged consumers by Rs6.58 billion during fiscal year 2023-24, violating approved tariff rates. The Auditor General has called for a thorough investigation to determine accountability in this matter.

The AG report has urged immediate action to hold those responsible accountable and ensure proper regulatory frameworks are implemented within the telecom sector.

Monitoring Desk
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