Audit report unearths Rs8.6bn irregularities in federal education ministry accounts

ISLAMABAD: Auditor General of Pakistan (AGP) has unearthed massive irregularities in the accounts of Federal Ministry of Education and Professional Training and its attached departments— including serious cases of fraud, embezzlement and misappropriation of funds amounting to billions of rupees.

In its annual report for the audit year 2020-21, covering financial year 2019-20, the AGP raised audit observations amounting to Rs 8.6 billion related to Ministry of Education and Professional Training.

These include Rs 5.57 billion employees related irregularities, Rs 1.75 billion under the head of “others,” almost Rs650 million related to non-production of record, Rs 493 million related to internal controls, Rs 83.43 million involving reported cases of fraud, embezzlement and misappropriation, Rs 32.69 million involving accounts management with commercial banks and almost Rs 20 million under the head of value for money and service delivery.

The report unearthed that 27 audit paras were raised in financial year 2018-19, out of which there were 16 actionable paras.

However, the Ministry of Education and Professional Training showed compliance with only two paras and remaining 14 audit paras had none or partial compliance while the total compliance was recorded at only 13 per cent.

The audit reveals that the management of Federal Board of Intermediate and Secondary Education (FBISE) got approved the estimates of Rs 1.93 billion for financial year 2019-20 against which the actual receipt was Rs 1.92 billion

The audit observed that the relevant record pertaining to receipts was not produced for cross-examination.

“Audit is of the view that in the absence of record of receipts, the authenticity of Board income cannot be ascertained against the services rendered,” the AGP report said.

The report stated that Federal Directorate of Education (FDE) maintained an unauthorised bank account of Rs 23.69 million. The audit observed that the bank account titled “Examination Fund Account” was opened without approval of Finance Division and it was thus unauthorised. The audit report recommended that the matter be inquired and responsibility be fixed for irregularity.

The audit detected serious irregularities in the funds of PEIRA (Private Educational Institutions Regulatory Authority). The AGP observed that no fixation of grade-wise rate of admission fee, security fee, monthly tuition fee and other fees being charged by private educational institutions was ensured by PEIRA. There was no mechanism on part of PEIRA for checking qualification and terms and conditions of teaching staff employed by private educational institutions, AGP report stated.

In, addition, the audit observed that there was no mechanism developed by PEIRA to check that the services, the quality of education being provided and salaries paid to the teachers commensurate for the fees being charged.

“Audit is of the view that non-performing mandatory functions is serious service delivery issue on part of PEIRA,” the audit report said.

The audit also found that PEIRA made irregular investment of Rs 50 million in a commercial bank for one year at the rate of 10.90 per cent per annum without competitive bidding and formation of Investment Committee, which is against the instructions of Ministry of Finance.

The AGP recommended that the matter be inquired for fixing of responsibility.

The AGP also found that the management of Inter Board Committee of Chairmen (IBCC) made unauthorised expenditure of almost Rs 200 million without the approval of the federal government.

Copyright Business Recorder, 2021