Audit report shines light on Rs4.8tr irregularities in power sector

• Report highlights ignored rules, poorly managed contracts.
  
• Points out embezzlement, misappropriation valuing Rs2,212.95m.
• Audit report covering FY2023-24 to be presented before PAC.
  

ISLAMABAD: Auditor General of Pakistan (AGP) in its audit year 2024-25 report has exposed a serious crisis of governance in the power sector by identifying financial and operational irregularities worth Rs4,800 billion.

The report covers financial year 2023-24 and will be presented to the Public Accounts Committee (PAC). It does not pinpoint a single scandal but rather a comprehensive system-wide failure.

It details a sorry state of affairs where rules are routinely ignored, contracts are poorly managed, and vast sums of public money are subject to risk, mismanagement and in some cases, outright theft.

Following are the key findings of the audit report on the accounts of power division, its attached entities and Nepra:

1. In six cases, theft, embezzlement and misappropriation valuing Rs2,212.95 million was pointed out.
2. In 86 cases, procurement/contractual irregularities involving Rs156,141.88 million were pointed out.
3. In 77 cases, violation of internal regulations and SOPs of auditee entities involving Rs507,242.82 million were pointed out.
4.  In 90 cases, violations of laws and regulations promulgated by constitutional statutory authorities i.e., Ministry of Energy (Power Division), Finance Division, Cabinet Division, ECNEC, AGP, Nepra etc., involving Rs957,751.65 million were highlighted.
5. In a case, irregularities related to non-tagging and non-revaluation of assets in Discos and Genco-I involving Rs624,470.85 million was highlighted.
6. In 19 cases, power sector receivables of Rs1,369,053.65 million were highlighted, which significantly included accumulative receivables from consumers as well as receivables of CPPA-G towards Discos/K-Electric.
7. In 32 cases, irregularities of Rs4,470.34 million related to Human Resource Management and Employees benefits were identified.
8. In seven cases, recoveries of Rs21,634.08 million were reported by audit.
9. In 10 cases, value for money and service delivery issues involving Rs22,249.60 million were pointed out.
10. In 58 cases, other issues like reconciliation of receivables, blockage of investment, capacity payment claims, supplemental charges and late payment surcharge etc., involving Rs1,056,808.80 million were highlighted.

Originally published in The News