Rs3bn financial mismanagement identified in Aviation Ministry

ISLAMABAD: Financial mismanagement exceeding Rs 3 billion has been identified in the Ministry of Aviation and its attached organisations, including the Pakistan Civil Aviation Authority (PCAA) and Airport Security Force (ASF), according to the Audit Report 2024–25.

The report points to irregular contract awards, unauthorised payments, poor recordkeeping, and weak internal controls across several operations.

A major portion of the losses, Rs 2.3 billion, arose from the PCAA’s failure to recover long-standing dues from airlines and other stakeholders.

Despite repeated audit observations in prior years, the outstanding receivables remained unpaid, highlighting ineffective enforcement mechanisms and weak follow-up from the authority.

Another Rs313.6 million was noted as an irregular expenditure on account of consultancy contracts awarded without following the prescribed Public Procurement Rules (PPRA).

The audit found that the PCAA hired consultants for design and supervision tasks without competitive bidding or proper approval, raising concerns about transparency and value for money.

Separately, PCAA spent Rs154.6 million on procurement of equipment and services without the required sanction from the competent authority. The report also flagged unapproved advance payments and missing documentation, calling into question the compliance culture within the organisation.

The ASF was also found in violation of financial rules.

An expenditure of Rs45.8 million was incurred on procurement of vehicles and uniform items without proper tendering procedures.

Moreover, ASF did not maintain inventory records, making physical verification and accountability difficult.

In another para, Rs125 million was paid as rent to a private landlord for an ASF camp without documentation to prove space utilisation or rental agreement terms.

The auditors noted that the lease extension and increased payments lacked legal vetting.

The audit also noted issues in asset management.

Several properties and pieces of equipment purchased by the PCAA and the ASF were not recorded in fixed asset registers, increasing the risk of misuse or loss without traceability.

Despite the repeated nature of such audit findings over the years, the concerned departments failed to provide adequate responses or rectification plans.

In many cases, Departmental Accounts Committee (DAC) meetings were not held, and no accountability measures were initiated.

The audit report calls for strict adherence to financial regulations, recovery of outstanding dues, and fixing responsibility on officials involved in bypassing procurement and approval procedures. It also recommends enhancing internal audit functions within the ministry and its entities to prevent recurrence.

Copyright Business Recorder, 2025