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Balochistan PAC Flags Rs12.11bn Irregular Spending

The Balochistan PAC has flagged irregular spending of more than Rs12.11 billion by the province’s Communications and Works Department during the 2023-24 financial year, raising serious concern over the scale of the problem.

The committee took up the issue at a meeting chaired by MPA Asghar Ali Tareen on Saturday at the Balochistan Assembly’s newly established committee room. Reviewing the audit report for 2023-24, committee members asked officials to explain the scale of irregular spending within a single year, Dawn reported.

The lawmakers also looked at the department’s 2022-23 financial performance. Of the more than Rs44.42 billion allocated, about Rs3.24 billion went unused and lapsed. Members asked why the funds had not been used, noting that unspent amounts should have been surrendered in time so they could go to other essential development projects.

Questions over project directors and spending

The committee raised concerns over appointing project directors for development schemes when the relevant government departments already exist to carry out such projects. Members said these arrangements put an unnecessary financial burden on the public exchequer, and asked for full details on official vehicles, salaries and administrative costs.

Special audits were also ordered for projects in Nasirabad, Nushki, Zhob and other districts, including the Kachhi Plain Water Supply Scheme and the Balochistan Livelihood and Entrepreneurship Project.

Looking at excess payments to contractors, the PAC found Rs90.34 million in overpayments to various building divisions during 2021-22, caused by calculation errors and unapproved rates. The committee ordered the full amount to be recovered.

A further irregularity of Rs40.41 million was found in payments for construction work that went beyond the quantities approved in PC-Is, estimates and contractual agreements. The PAC told officials to ensure full recovery within 10 days, stressing that projects must stick to approved rates and stay transparent.

The remaining audit objections were put off to the next meeting on November 30.

What the Balochistan PAC found before

The Rs12.11 billion figure is not the first large audit finding to come out of the Balochistan Assembly this month. In a separate review reported by Dawn on November 4, the same committee found a gap of about Rs7.71 billion between the provincial government’s financial statements and State Bank records, and told the Finance Department to build a working reconciliation system and clear outstanding audit objections within 45 days.

Audit officials blamed the gap on poor record-keeping, unrecorded outstanding cheques and delays in reconciling accounts with the State Bank and the National Bank. As of June 30, 2023, the government’s financial statements showed account balances of more than Rs23.06 billion, against about Rs15.29 billion in State Bank records.

The two findings sit side by side. One points to money spent outside the rules, and the other points to money that cannot be traced between the books. Together they show a province where public funds need far tighter control.

The issue also reaches beyond the audit room. Balochistan’s political parties have announced a province-wide shutdown for November 19, and a provincial minister has defended the Frontier Works Organisation’s performance in Balochistan after criticism in the assembly. JUI-F has decried what it calls a coordinated campaign against Maulana Fazlur Rehman, adding to the political heat in the province. A 150-bed cardiac hospital in Quetta is nearing completion this month, a reminder that the province’s development needs are real and that wasted funds carry a direct cost for its people.

What happens next

The Communications and Works Department must recover the Rs90.34 million in overpayments in full, and the Rs40.41 million in excess payments within 10 days. The committee will take up the remaining audit objections at its next meeting on November 30, when officials must also report on the special audits ordered for projects in Nasirabad, Nushki and Zhob.

Frequently asked questions

How much irregular spending did the Balochistan PAC find?

The committee found irregular expenditure of more than Rs12.11 billion by the Communications and Works Department during the 2023-24 financial year.

Who chaired the PAC meeting?

The meeting was chaired by MPA Asghar Ali Tareen at the Balochistan Assembly’s newly established committee room.

What recoveries did the committee order?

The committee directed 100 per cent recovery of Rs90.34 million in overpayments to contractors, and full recovery of Rs40.41 million in excess payments within 10 days.

How much of the department’s budget went unspent?

Of more than Rs44.42 billion allocated in 2022-23, about Rs3.24 billion was not utilised and lapsed.

When does the committee meet again?

The remaining audit objections were deferred to the next meeting on November 30.

Feature Pakistan News Desk
Feature Pakistan News Desk is the editorial team of Feature Pakistan, an independent digital news platform based in Pakistan. The desk reports national, world, business, sports, technology, health and education news, and every story is cross-checked against multiple sources before it is published. To reach the newsroom — including for corrections — email featurepakistanofficial@gmail.com or use the Contact page at featurepakistan.com/contact-us/.

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