The Auditor General of Pakistan (AGP), in its 2024-25 audit report, has unveiled a staggering governance crisis in the country’s power sector, identifying financial and operational irregularities amounting to Rs. 4,800 billion.
The report, covering the financial year 2023-24, paints a grim picture of systemic failures, mismanagement, and widespread violations across the sector.
The report, which will be presented to the Public Accounts Committee (PAC), does not single out any specific scandal but highlights a comprehensive breakdown in governance. It reveals a culture where rules are routinely flouted, contracts are poorly managed, and public funds are exposed to significant risks, mismanagement, and, in some cases, outright theft.
The audit scrutinized the accounts of the Power Division, its affiliated entities, and the National Electric Power Regulatory Authority (NEPRA). The following are the major findings:
- Theft and Embezzlement: Six cases of theft, embezzlement, and misappropriation were identified, amounting to Rs. 2.21 billion.
- Procurement Irregularities: In 86 cases, procurement and contractual violations involving Rs. 156.14 billion were highlighted.
- Internal SOP Violations: Seventy-seven cases of violations of internal regulations and standard operating procedures (SOPs) were reported, totaling Rs. 507.24 billion.
- Legal and Regulatory Breaches: Ninety cases of violations of laws and regulations issued by statutory authorities, including the Ministry of Energy, Finance Division, and NEPRA, were flagged, involving Rs. 957.75 billion.
- Asset Mismanagement: A case of non-tagging and non-revaluation of assets in Distribution Companies (Discos) and Genco-I was reported, amounting to Rs. 624.47 billion.
- Receivables Crisis: Nineteen cases of power sector receivables were identified, totaling Rs. 1.37 trillion. This includes unpaid consumer bills and receivables of the Central Power Purchasing Agency (CPPA-G) from Discos and K-Electric.
- HR and Employee Benefits: Thirty-two cases of irregularities related to human resource management and employee benefits were reported, amounting to Rs. 4.47 billion.
- Recoveries: Seven cases of recoveries worth Rs. 21.63 billion were highlighted.
- Value for Money Issues: Ten cases involving Rs. 22.25 billion were flagged for inefficiencies in service delivery and value for money concerns.
- Other Irregularities: Fifty-eight cases involving Rs. 1.05 trillion were identified, including issues related to reconciliation of receivables, blocked investments, capacity payment claims, supplemental charges, and late payment surcharges.
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like always this report will be kicked in dustbin by the same parliament
Identifying the problem is the first step of correction.
Highlighting the problem is the second step.
Final step is correction and implementation of a system that it does not happen again.
This is the way any system gets refined.
Public Accounts Committee is a fraud, they only disclose these facts, after disclosure, it would have been gone to the deep hole, where no one can find any report in future. May Allah take these black sheep to task and make them an examples for the people.
strategy was to take money from entire population by focusing on two essential things …electricity and gas . plan is working great for everyone involved