ISLAMABAD: Auditor General of Pakistan (AGP) has unearthed massive irregularities amounting to Rs685.84 million including irregular appointments, violation of rules, nil recoveries and other highly questionable practices related to the finances of Ministry of Climate Change (MoCC) and its attached departments.

In its report of the audit year 2020-21 that covers financial year 2019-20, the AGP has pointed out that an amount of Rs696.31 million was lying with MACF (Mountain Area Conservancy Fund) as on June 30, 2020.

Audit is of the view that neither did MACF appoint any asset/fund management firm as required under the rules nor did it make any investment for efficient utilisation of funds.

"Audit holds that non-achievement of objectives, non-investment of funds and non-holding of AGM (Annual General Meeting) and Board of Directors (BoD) meeting was serious lapse on part of MACF," the AGP report states.

It recommends that non-achievement of objectives, non-investment of funds and non-holding of AGM and BoD meetings be justified by MACF.

During the audit of Pakistan Environmental Protection Agency (Pak-EPA), for the financial year 2019-20, the audit observed that no meeting of Pakistan Environment Protection Council was held, which was in violation of Pakistan Environment Protection Act. Pak-EPA's reply to the audit suggested that the subject of Environment was devolved in 2010 through 18th Constitutional Amendment due to which the federal government did not constitute and notify the new composition of the Pakistan Environment Protection Council. The audit observed that the reply of Pak-EPA was not satisfactory and Pak-EPA made no efforts for the constitution and holding of meeting of Pakistan Environment Protection Council since 2010.

The audit noted that MACF appointed its director biodiversity as company secretary in violation of Corporate Rules 2013. The audit observed that director biodiversity did not meet the qualification criteria required under Corporate Rules 2013.

The audit also pointed out that the appointment of company secretary was delayed in the form of non-appointment of company secretary within the specified time. The BoD of MACF had directed to advertise the post of company secretary in newspapers but it was not done.

Copyright Business Recorder, 2021