The Auditor General of Pakistan has uncovered irregularities involving the payment of Rs. 20.654 million to employees of the Universal Service Fund (USF), which operates under the Ministry of IT and Telecom (MoITT).
The audit report reveals that the payments were made as a monthly fuel ceiling to officers above the manager level during the financial year 2022-23, in addition to a vehicle monetization allowance of Rs. 13.532 million already provided to these officers. The report argues that this double provision of benefits was inadmissible and violated the principles of sound internal control expected in public sector companies.
According to the audit report, the Public Sector Companies (Corporate Governance) Rules, 2013, require all public sector companies to establish an effective internal control system that upholds the principles of probity, integrity, and honesty. The audit emphasizes that the USF’s authorization of a monthly fuel ceiling on top of the monetization allowance breached these rules. The report criticized the management’s decision to pay both benefits simultaneously, highlighting a lapse in internal controls and a disregard for government policies regarding compensation and benefits.
The USF management defended the payments, stating that the monetization policy, which included both fuel entitlement and vehicle monetization in lieu of official vehicles, was approved by the Board of Directors as part of the HR Manual, based on recommendations from the Human Resource Governance Committee (HRGC). However, the audit report deemed this response unacceptable, arguing that the Board did not explicitly permit the concurrent provision of both the monetization allowance and the fuel ceiling. This, the audit asserted, represented a misinterpretation of the Board’s approval and a deviation from the intended policy framework.
According to the audit report, the issue was discussed during a Departmental Accounts Committee (DAC) meeting on January 11, 2024, where the committee reaffirmed its earlier stance from a December 2022 meeting. The DAC directed USF management to refer the matter back to the Board of Directors to align the company’s policies with those of the government. The DAC also stressed the need for strict compliance with directives to prevent future deviations from established guidelines and ensure the responsible management of public funds.
The Auditor General’s report has called for the immediate implementation of DAC directives and a review of the internal controls within USF to prevent similar occurrences. The findings have raised concerns about governance and oversight in public sector companies, emphasizing the importance of transparent and accountable practices in the management of public resources.
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