The Auditor General of Pakistan (AGP) has found Rs. 25 billion worth of embezzlements in the financial accounts of the country’s Armed Forces.
The audit report for the fiscal year 2021-22 has unearthed Rs. 21 billion irregularities in Pakistan Army, and Rs. 1.6 billion each in Pakistan Air Force (PAF), and Pakistan Navy (PN).
In addition, it has also identified Rs. 66 million in embezzlements in the inter-services organizations, Rs. 203 million in Military Accountant General (MAG), and Rs. 2 billion in Military Lands and Cantonments (MLC).
Furthermore, Pakistan Army recorded almost Rs. 18 billion in corruption because of the mis-procurement of a store and the acquisition of several items without competitive bidding, along with other discrepancies in the tendering procedure.
Another notable irregularity worth Rs. 2 billion has been discovered due to incomplete contracts, which defy the Public Procurement Rules. The unlawful awarding of a contract and mis-procurement of pharmaceuticals at the Combined Military Hospital (CMH) Peshawar resulted in Rs. 290 million in irregularities.
Accordingly, the submission of tampered Public Procurement Regularity Authority (PPRA) website tender notices resulted in an unauthorized payment of Rs. 132 million, while Rs. 10 million abnormalities have also been identified after an audit of the Pakistan Military Academy (PMA) in Kakul.
Meanwhile, PAF illegally consumed gas to produce electricity which caused an irregularity of Rs. 610 million, which also violated PPR Rules, 2004. Also, Rs. 481 million of swindling was done in illegal payments due to unlawful gas usage.
Besides, the audit report further revealed that PAF also purchased Rs. 181 million worth of unnecessary sports equipment, and spent Rs. 102 million on the development of a sports complex along with Rs. 83 million on the acquisition of a cruise boat. Additionally, it has also been found guilty of swindling Rs. 52 million on the illicit power supply to Air Force Officers Housing Scheme (AFOHS).
Other irregularities caused by PAF include Rs. 38 million in the accounts of the hospital development fund, Rs. 15 million on the preservation of grounds, Rs. 12 million on an unlawful contract, and Rs. 4 million unauthorized spending on a fitness club.
The report has also discovered that inter-services organizations illegally purchased Rs. 40 million worth of gifts/souvenirs and Rs. 26 million of stationery items from non-listed sellers.
Besides, MLC incurred a total of Rs. 2 billion in abnormalities in its accounts due to several illegal acts, including, the unlawful construction of four floors in the Hyderabad Cantonment Area.
The audit report has also unearthed several other funding discrepancies which include non-production of records, defiance of PPR Rules – 2004, non-implementation of public and municipal services, lack of internal regulations, violations of rules and regulations in the execution of public works, and many others.
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That adds up to $100 million, worth about 2 JF-17s.