USF Spent Rs. 6 Billion on Telecom Projects Without PTA Approval: Audit

The Auditor General of Pakistan has identified major monitoring failures in Rs. 5.97 billion worth of Universal Service Fund (USF) telecom projects, revealing that mandatory quality-of-service (QoS) surveys were not conducted after the projects were completed.

According to the audit report for FY2023-24, the lapse affected 16 completed projects under the Broadband for Sustainable Development (BSD), Next Generation BSD (NG BSD), National Highways and Motorways (NH&MW), and Optical Fiber Cable (OFC) programs.

The audit found that, despite payments totaling Rs5.968 billion, the USF did not maintain implementation plans or QoS survey reports prepared in line with Pakistan Telecommunication Authority (PTA) standards, as required under the Service Subsidy Agreements with telecom operators.

The report also revealed that the USF received 216 complaints during the fiscal year related to connectivity and service quality after the networks became operational. According to auditors, the complaints were neither resolved by the company nor referred to the PTA for regulatory action.

The Auditor General concluded that the absence of mandatory QoS surveys and reports weakened oversight of telecom services and undermined efforts to provide reliable broadband connectivity in underserved and unserved areas.

In its response, USF management said service providers submitted bi-weekly progress updates and that monthly review meetings were held to monitor implementation and project milestones. It also claimed that milestones were verified against contractual obligations and PTA benchmarks before payments were released.

The audit rejected the explanation, stating that while infrastructure progress was monitored, no evidence of PTA-compliant QoS survey reports was provided.

The issue was taken up by the Departmental Accounts Committee (DAC) in December 2024, which directed the USF to submit monitoring reports for completed projects and provide details of complaints referred to the PTA. However, the audit noted that no compliance had been reported by the time the audit was finalized.

The Auditor General has recommended that the DAC’s directives be implemented to strengthen project oversight and ensure compliance with service quality requirements.