The Auditor General of Pakistan (AGP) has detected embezzlement, irregularities and mismanagement of Rs 13.86 billion in Pakistan Cricket Board (PCB).
PCB faced a loss of Rs 248.615 million due to irregular payments to franchises in excess of agreed share of central pool, loss of Rs 54.49 million due to irregular award of compensation to the Pakistan Super League (PSL), Rs 1155 million loss on unjustified auction of franchises, Rs 246 million on advance payment to vendors and Rs 306.68 million on extra expense due to non-charging of venue hiring costs to Central Pool Income as noted in the Special Audit Report-2017-18.
The national exchequer also faced loss of Rs 1.5 billion due to non-transparent award of contracts in Dubai to a firm/consortium, Rs 455.62 million loss on awarding contract for broadcast rights (excluding Pakistan), Rs 908.25 million loss on awarding contract for Pakistan media rights to M/s Blitz, Rs 304.5 million on awarding of production services contract and payment of cost overrun and it also made unauthorized and unlawful transfer of PSL funds of Rs145.148 million into third party bank accounts outside Pakistan.
PCB did not recover amounts due from franchises worth Rs32.050 million and Rs 18.880 million on irregular excess expenditure on production of PSL-II final.
According to audit report, management of PSL made advance payment of Rs 246.045 million to different vendors on account of provision of services due to non-framing of financial rules. Audit observed that the advance payment was made without obtaining bank guarantee from the vendors. The audit recommended that responsibility may be fixed for poor financial management.
The audit report noted that the national exchequer faced loss of Rs 403.949 million due to irregular and uneconomic award of event management contract. During the audit of PSL-I and II, it was observed that management of PCB entered into contract agreement with M/s Transgroup FZE for event management services like ground branding, tire branding, exterior façade, entertainment and opening ceremony at Dubai and Sharjah etc. for T20 tournaments PSL 2016 and PSL 2017. The event management work was assigned to the firm M/s Transgroup FZE Sharjah without floating opportunities in the national and international media. Prequalification process complete in all respects was also not maintained/available with management. The firm was gain awarded the contract with same scope of work for PSL-II, 2017, at a cost of $ 2.42 million i.e. 67.21 percent higher. Tenders were again not floated.
The national exchequer faced loss of Rs 18.88 million due to excess expenditure on the production of PSL-II final without proper estimation, Rs 26.84 million due to non-deduction of government dues, Rs 12.646 million expenditure on account of TA/DA of journalists, Rs 59.85 million loss due to non-transparent award of franchise rights to the unqualified firms and loss of Rs 13 million due to non auction of commercial broadcast rights.
AGP recommended that PCB should investigate non-recording of decisions of Governing Council, investigate loss sustained due to sale of franchises below the reserve price and extra payment beyond the approved amount and unlawful transfer of funds into third party bank accounts.
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