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ISLAMABAD: The Auditor General of Pakistan (AGP) has detected irregularities of around Rs25 billion in the financial affairs of armed forces.

According to the audit report on the account of defence services for audit year 2021-22, Pakistan Army incurred Rs21 billion, Pakistan Air Force Rs1.6 billion, and Pakistan Navy incurred Rs1.6 billion in irregularities.

The audit report pointed out Rs66 million in irregularities in inter-services organizations and an embezzlement of Rs203 million was incurred by Military Accountant General.

The report further maintained that Military Lands and Cantonments sustained irregularities of Rs2 billion.

The irregularities Pakistan Army sustained include around Rs18 billion due to the mis-procurement of a store. During the audit of Army formations, it was observed that procurement of different items was made without open competition and other irregularities in the tendering process.

The other major irregularity observed due to irregular conclusion of contracts without observing Procurement Rules which was around Rs2 billion. It was observed that the procurement of goods and services was made in violation of the Public Procurement Rule.

The report stated that the irregular award of a contract and mis-procurement of medicines in Combined Military Hospital (CMH) Peshawar caused Rs290 million of irregularities.

Similarly, the submission of tampered Public Procurement Regularity Authority (PPRA) website tender notices with contingent bills caused Rs132 million unauthorised payment.

Another mis-procurement was noted during the audit of PMA Kakul and the scrutiny of record revealed Rs10 million of irregularities.

According to the audit report, Pakistan Air Force violated PPRA Rules-2004 during irregular consumption of Sui gas for the generation of electricity to the tune of Rs610 million, Rs481 million of irregularity caused due to unauthorised payment of overtime and conveyance allowances, Rs181 million against unnecessary procurement of sports items, RS102 million for irregular expenditure on construction of sports complex, Rs83 million for unauthorised procurement of cruise boat beyond authorisation, Rs52 million for irregular supply of electricity to Air Force Officers Housing Scheme (AFOHS), Rs38 million for irregular receipt on account of hospital development fund, Rs15 million for doubtful expenditure on maintenance of grounds, Rs12 million for irregular benefit awarded to contract due to advance payment and four million for unauthorised expenditure on a fitness club.

The report maintained that Pakistan Navy incurred irregularities of Rs1.6 billion against non-imposition of liquidated damages reflecting the failure of the management to safeguard government interest.

Inter-services organisations, according to the audit report incurred around Rs40 million of irregularities due to unauthorised procurement of gifts/ souvenirs without observing public procurement rules and an amount of Rs26 million was spent on the purchase of stationery items from non-participant suppliers.

The report further stated the Military Lands and Cantonments incurred a total of Rs2 billion of irregularities, including Rs1.9 billion caused due to unauthorised construction of four floors by a builder in Hyderabad Cantonment. Rs88 million of irregularity was caused by unauthorised change of purpose and non-deposit of premium, composition fee and development charges in which residential property in Rawalpindi was used for commercial purpose. Another irregularity of Rs20 million was observed which was incurred due to unauthorised utilisation of residential leased property as commercial without renewal of the lease agreement.

The audit report further identified various sectors financed out of the Defence Services Grant and highlights significant issues within each sector.

The major issues identified in this report include non-production of record, violation of Public Procurement Rules, 2004, non-provision of public and municipal services, weak internal control within the armed forces, non-adherence to rules and regulations in the execution of public works, non-withholding of income and sales tax and its deposit into the public exchequer, lack of transparency in local procurement of stores and its management, health services, irregular conclusion of contracts for defence production of weapons and equipment and systematic issue of advance payment in defence procurement.

Copyright Business Recorder, 2022


Comments are closed.

bairoonemulk Oct 12, 2022 03:34pm
The scale of corruption amongst the Army is ten times greater than that of Air Force and Navy combined.
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Adnan Aziz Oct 12, 2022 04:32pm
Great! But what will happen now? A big NOTHING. The AGP might be either removed or sent on forced leave. May be he will be made to 'disappear'. Why all what I have written? Because there is a different law for every person/entity in this country.
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M.usman Oct 12, 2022 05:44pm
According to those criminals and mafias 'this is the most discipline and metit institution of Pakistan' when ik just asked for new army chief appointment procedure. Black sheepers of Pakistan
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Zohiab Tariq Oct 12, 2022 07:02pm
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Humayun Shaikh Oct 12, 2022 08:01pm
حیراں ہوں‘ دل کو روؤں کہ‘ پیٹوں جگر کو میں مقدور ہو‘ تو ساتھ رکھوں نوحہ گر کو میں
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Ahmad Fraz Butt Oct 12, 2022 09:05pm
One Army misappropriation of funds is larger than other forces because it is simply a larger force than other forces. Secondly, major chunk of this is due to following reasons 1. Urgent nature of tasks, or say A Type personality commander who wants to do thing in urgency, force subordinates to bypass rules. 2. Many times it is lack of awareness of rules which leads to wrong procedure adopted and this audit objection. 3. At times it is inability to understand Army requirement and situation which leads to audit objection. For example during 2001 escalation one of the Army purchases was material for bunkers. Due to urgency PPRA rules were not followed for purchase which cannot be followed in that situation for obvious reasons. Auditors raised objections and were adamant not to understand the situation. So there are many objections like that also. 4. Those who come to do audit are many times corrupt to core and when their palms are not greased they threaten and execute by raising audit objection. 5. Finally yes there might be an element of corruption within Army also. At the end I would say that this is a normal occurring in any department and is addressed as per procedure
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Nek Nawaz Oct 12, 2022 09:25pm
That is state institution it must be under the controle of state rules.those committeed violation must be brought to book.
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Muzzamil Oct 12, 2022 11:25pm
Here comes Chae makers with their analysis. It's audit of documents. Enhance your with knowledge not with sh*t
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Pakistan Oct 13, 2022 12:10am
Right. So what about the audit of AGP? It was done by the 2 Joint Secretaries of Finance ministry in 1970s once. AGP do audit from their audit officers. Serious conflict of interest n violation of laws n rules. Zero transparency in AGP. Finance division should conduct audit of AGP. What about courts?
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No Name Oct 13, 2022 01:20am
The Nobles and Untouchables of our society: This report is correct or not? It needs investigations. Why are we still continuing with the British Law of allowing an Institution to have their own investigation units, courts etc. Britishers were the foreign occupier, they were the masters and people of Indian Sub- Continent were slaves. They allowed separate laws to protect their wrong doings and crimes. Since we are independent why are we still continuing with the old system? There should be one Justice System, Misuse of Public Taxed money should be hear in public in the Supreme court. Courts should be empowered to order investigations by a 3rd Party Unbiased and Protected by Law. There are laws that no one can even question the misdoing or say anything. One can be charged for crimes against the state institution. It's unfortunate that collectively we are all going in the wrong direction. Knowingly or unknowingly we are creating a divided society where one consider himself as the most noble, nationalist and correct ( The Masters). All others are wrong and against the nation. Unlimited and Unchalanged Power and Private Judicial System is a Curse for a nation to eventually collapse. There should be one Law and all should report to it. No one should be superior or excempted of it including Judges themselves. Why certain positions and institutions has constitutional immunity? What are they afraid of? We still have time to correct ourselves and weaknesses of our system if we wish to rise as one strong nation.... May Allah (SWT) guide us to the right path. Ameen
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Athar-Basit Oct 13, 2022 06:11am
This is just the tip of the iceberg,
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Athar Ali Khan Oct 13, 2022 09:15am
Excellent. No problem. They are our Muhafiz/Guadian. If they sale Pakistan (as told Mr. Ehtaz Ahsan sb) that would also be in interest of Mother Land? But they should not surrender like 1971 war. Pakistan per Saya e Zuljalal ho. Aameen
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Aziz Oct 13, 2022 05:02pm
@Adnan Aziz, That kind of comments are by people who don't know what initial Audit Report is ! Highlighting so called irregularities is their bread and butter ... most of these points are cleared on first presentation of relavent documents. The points on which the Auditors never agree for a longer time ... finally end at Public Accounts Committee ... that's the place that needs to be corrected ! Where there are all politicians !!
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Aziz Oct 13, 2022 05:02pm
@bairoonemulk, Their part of budget is also many times bigger .... ratio matters.
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Aziz Oct 13, 2022 05:04pm
@M.usman, Its said by a person who never looked at first Audit Report of any other Govt institution!
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Rrrrr Oct 13, 2022 05:29pm
@Ahmad Fraz Butt, no its not a normal has been normalized just in corrupt countries like ours. They spent 1arab in making a song!!! Highly unjustifiable
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Haider Oct 13, 2022 07:04pm
To ensure recovery of these over payments,irregular payments,Illegal Payments all should be recovered and key portion of Payment is via MAG, where totally non professional Qualified have hanged all process in other words Audit and Accounts is totally collapsed due to fake projects,fake only documents bases In physically zero transection of these Goods,Items etc , AGP please take MAG under your own Administration's controlled to protect this Nations Assets , hope rapid action will be on board to save Public Money from these Cartels,Manopolies etc
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Isara Oct 13, 2022 07:33pm
ہر شاخ پے الو بیٹھا ہے انجام گلستان کیا ہو گا اس ملک کو ہر ایک نے اپنے طریقے سے لوٹا ہے بھای جان اس ہیں کونسی خامی ہے وہ بھی اپنا حق سمجتھے ہیں
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Rizwan Hassan Oct 15, 2022 12:29pm
Black sheeps of pakistan
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