AGP detects over Rs 40 billion malfeasance in pension payment

The Auditor General of Pakistan (AGP) has observed that there were Rs 40.042 billion irregularities, including overpayment, irregular payment and lack of documentation, in payment of pension to 2.26 million pensioners in the country in a special audit prepared by it on the request of Senate Standing Committee on Finance in pension payment.
The AGP in its latest audit report noted that decrease in the number of pensioners from 2.1 million in 2012 to 1.5 million in 2015 was due to the fact that ghost pensioners were drawing pension during the past period. As per audit observations, of the total Rs 40.042 billion embezzlement, overpayment, irregular payments as well lack of documents, non-reconciliation and over drawl of funds, Rs 35.036 billion was observed in National Bank of Pakistan and Rs 5.041 in General Post Office (GPO). The AGP observed that a dramatic decrease in pensioners from 2.1 million in 2012 to 1.5 million in 2015 was noted after introduction of Direct Credit Scheme (DCS) as stated by the President of NBP before the committee.
The AGP observed that embezzlements of Rs 630.09 million was noted in pension payment with Rs 609.360 million in NBP and Rs 21.636 million at GPO, overpayments of Rs 246.926 million with Rs 228.225 million in NBP and Rs 18.701 million in GDP, irregular payments, Rs 4,243.564 million which included Rs 23.233 million in NBP and Rs 4,220.331 million. The Audit also revealed that there was a lack of documents in the amount of Rs 5619.566 million with Rs 4,874.423 million in NBP and Rs 754.143 million in GPO while Rs 29,092.076 million were non-reconcilable in NBP. The over drawl of funds by the NBP involved Rs 209.336 million.
Audit detected six cases where fraudulent withdrawal of pensions seemed prima facie evident. Three of them involving more significant amounts are highlighted above, other three related to withdrawal of pensions against cancelled PPOs involved amounts of less than one million rupee each.
On the top of the list was the fraudulent payment of pensions uncovered by Audit in National Bank, Main Branch, Muzaffargarh, over the past three years. A comparison of Pension Ledgers maintained at the Bank and the Debit Scrolls submitted by the Bank to the district accounts office (DAO) Muzaffargarh revealed a difference of Rs 581.93 million.
This amount was overcharged by the bank from the government of the Punjab. As detected during the audit, the modus operandi employed by the concerned bank staff for these fraudulent payments were through addition of an extra digit in the payment figures recorded in the Debit Scroll, forgery of figures, drawing of pension by two pensioners against same name and CNIC number and, by submitting some outright fake claims. During the scrutiny of Pension Ledgers, Audit located several unverifiable PPOs as well as instances of forgery of pension figures.
The Audit report stated that the President of NBP gave a detailed briefing on 7th September 2015 to the Senate's Standing Committee on Finance on the pension structure of the pensioner's population for the last fifteen years and total monthly pension drawn by the pensioners. He briefed about the number of accounts closed owing to death of pensioners and their spouses, percentage of pensioners increasing/decreasing during the said period, criteria for disbursement of pension, role and responsibilities of the concerned departments in this regard after retirement of its employees.
The NBP president gave figure of 2.1 million pensioners for the fiscal year 2012, 1.4 million for 2014 and 1.5 million pensioners were drawing pension from the NBP branches in 2015. The members of the committee noted with serious concern that decrease in the number of pensioners from 2.1 million in 2012 to 1.5 million in 2015 and apprehended that this decrease was due to ghost pensioners who were drawing pension during the past period.