KARACHI: The Auditor General of Pakistan has detected serious financial irregularities totalling over Rs 423 million during audit of the Sindh Auqaf department for the financial year 2023-24, indicating a troubling pattern of fiscal mismanagement that has persisted for years.
The audit report revealed that approximately Rs 75.941 million was illegally retained across various bank accounts rather than being deposited into the government treasury as required under Sindh Financial Rules 41 and 41(a).
Of Rs 287.356 million collected from contracts, rent, and religious offerings known as Nazrana, the department improperly maintained over a quarter of these funds in three separate bank accounts located in Sehwan, Hyderabad, and Bhitshah branches.
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Despite assurances made during a Departmental Accounts Committee meeting in December 2024, where management pledged to deposit receipts by the fifth of each month, no measurable progress has been documented. This failure to comply with basic financial protocols represents a significant breach of government fiscal discipline and accountability standards, the report said.
The audit findings extended beyond fund retention issues to encompass Rs 347.539 million in questionable expenditures related to maintenance, repair works, and development schemes.
Auditors identified multiple procedural violations that fundamentally undermine the legitimacy of these substantial financial outlays, raising serious questions about the department’s operational integrity.
Critical procedural failures included the absence of mandatory pre-audit procedures for contractor payments, the department’s failure to appoint a professionally qualified Divisional Accountant, and the execution of repair works without proper cost estimates, the report said.
Additionally, AGP found no work completion certificates and inadequate record-keeping practices in measurement books, suggesting a systemic breakdown in financial oversight mechanisms.
The financial breakdown showed that Rs 322.633 million was allocated to Public Sector Development Program original works, while Rs 24.905 million was designated for maintenance and repairs, highlighting the substantial public resources at stake in these irregularities.
The audit report further indicated that similar irregularities were identified in previous years’ reports for 2022-23 and 2023-24, involving a staggering combined financial impact of Rs 1.696 billion.
The retention of government funds was previously reported with impacts reaching Rs 717.209 million, while construction-related irregularities had earlier involved Rs 979.027 million, establishing a clear pattern of persistent financial mismanagement within the Sindh Auqaf department.
When confronted during Departmental Accounts Committee meetings held in December 2024 and January 2025, department management provided verbal assurances but consistently failed to produce the required documentation or demonstrate concrete corrective measures, the report said and added that officials claimed to have issued instructions for timely fund deposits but could not provide evidence of compliance, while management insisted that proper construction procedures were followed despite being unable to furnish supporting records within a given deadline.
The audit report called for conducting thorough inquiries to determine accountability for construction irregularities, implementing robust preventive mechanisms to avert future violations, and issuing formal warnings to concerned officials for their negligence in handling public resources.
Copyright Business Recorder, 2025
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