AGP finds irregularities of Rs. 25B in armed forces’ affairs
The financial operations of the armed forces contain irregularities that total almost Rs25 billion, according to the Auditor General of Pakistan (AGP).
The audit report on the account of the defence services for the audit year 2021–22 states that the Pakistan Army, Pakistan Air Force, and Pakistan Navy all experienced irregularities of Rs21 billion, Rs1.6 billion, and Rs1.6 billion, respectively.
The audit report identified Rs66 million in irregularities in inter-services entities, and the Military Accountant General was found to have embezzled Rs203 million.
The report added that there were Rs 2 billion worth of irregularities in Military Lands and Cantonments.
The mis-procurement of a store cost the Pakistan Army approximately Rs18 billion, among other problems. It was discovered during the audit of Army formations that various things were purchased without an open bidding process and other irregularities.
Another significant irregularity, worth about Rs 2 billion, was discovered as a result of contracts that were improperly concluded without following procurement rules. It was noted that the Public Procurement Rule had not been followed in the acquisition of goods and services.
According to the report, Rs290 million in irregularities were created by the improper awarding of a contract and the improper procurement of medications at the Combined Military Hospital (CMH) in Peshawar.
Similar illegal payments of Rs132 million were made as a result of the submission of procurement notifications with contingent invoices on the manipulated Public Procurement Regularity Authority (PPRA) website.
During the PMA Kakul audit, another improper acquisition was discovered. A review of the records turned up Rs. 10 million in discrepancies.
The audit report claims that the Pakistan Air Force broke the PPRA Rules-2004 by improperly using Sui gas to generate electricity, paying overtime and conveyance allowances without authorization, purchasing unnecessary sporting goods for Rs181 million, and improperly spending Rs102 million on the construction of sports facilities. Rs. 181 million for the unauthorized purchase of sports equipment, Rs. 102 million for erroneous spending on the construction of a sports complex, Rs. 83 million for the unauthorized purchase of a cruise ship beyond what was authorized, Rs. 52 million for erroneous electricity supply to the Air Force Officers Housing Scheme (AFOHS), Rs. 38 million for erroneous receipt on account of the hospital development fund, Rs. 15 million for erroneous expenditure on grounds maintenance.
According to the report, the Pakistan Navy incurred irregularities totaling Rs. 1.6 billion without the application of liquidated damages, demonstrating the management’s failure to protect the government’s interests.
According to the audit report, inter-services organisations incurred over Rs 40 million in irregularities as a result of unauthorized gift/souvenir purchases made without adhering to public procurement laws, and Rs 26 million was spent on stationery purchases from non-participant vendors.
AGP finds irregularities of Rs. 25B in armed forces’ affairs
According to the investigation, there were a total of Rs 2 billion in anomalies at Military Lands and Cantonments, of which Rs 1.9 billion resulted from an unpermitted builder’s erection of four stories in Hyderabad Cantonment. Unauthorized change of purpose and non-deposit of premium, composition fee, and development costs led to Rs88 million in irregularities when residential property in Rawalpindi was utilized for business purposes. Another irregularity of Rs 20 million was discovered, which was brought on by the unauthorized use of leased residential property for commercial purposes without the lease agreement being renewed.
The audit study also identified several sectors that were funded by the Defence Services Grant and emphasized important problems in each sector.
The report identifies a number of major problems, including failure to produce records, violations of the Public Procurement Rules of 2004, failure to provide public and municipal services, lax internal control within the armed forces, failure to follow rules and regulations when performing public works, failure to withhold income and sales tax and deposit it into the public exchequer, a lack of transparency in local store procurement and its management, irregular contracting, and health services.
