ISLAMABAD: A recent audit report by the Auditor General of Pakistan has unearthed major financial and procurement irregularities in Pakistan’s diplomatic missions, highlighting concerns about accountability and transparency in public spending.
The AGPR audit examined expenditures from various missions, particularly Berlin, Bangkok and others, pointing to repeated violations of procurement rules, unauthorised payments, and lapses in financial management.
The audit report revealed that the Embassy of Pakistan in Berlin was found to have purchased gift items worth Rs7.286 million during the fiscal years 2019 to 2022 without following prescribed procurement procedures. The audit disclosed that the mission split purchases to avoid competitive bidding and failed to maintain a stock register to record the receipt and distribution of these items.
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Furthermore, payments for the gifts were reimbursed directly to the ambassador in several cases instead of being paid directly to vendors. Despite directives from the Departmental Accounts Committee in November 2023 to provide itemized receipts and stock registers, no progress had been made by the time the report was finalised, the audit observed.
Similar issues were flagged in previous audit reports, indicating a pattern of non-compliance, auditors further elaborated.
The audit report noted additional irregularities in the purchase of office furniture by the Berlin mission, which spent Rs2.353 million (€7,740.69) without adhering to procurement rules. The audit found that no tender notices were issued, and essential documents such as invoices, approvals, and vendor acknowledgements were missing.
One payment of Rs 851,200 (€2,800) was made to the personal account of a driver, citing the unavailability of a credit card at the mission, the report said, adding, that the Departmental Accounts Committee (DAC) directed the Ministry of Foreign Affairs to provide and verify the missing documents, but no progress was reported, marking yet another instance of recurring procedural negligence.
According to audit observation, the Pakistan Community Welfare and Education Fund (PCW&EF) was misused to pay Rs2.970 million as honorariums to 198 security and janitorial staff employed by private firms. The audit noted that these payments were unauthorized, as PCW&EF rules restrict its use to welfare activities for overseas Pakistani communities. Moreover, the payments were made in cash without proper receipts or acknowledgements. The ministry defended the payments as a welfare measure for low-paid workers, but the audit deemed them a clear violation of rules.
The audit also pointed out irregular expenditures by the Embassy of Pakistan in Bangkok, which paid Rs 4.133 million (BHT 900,000) to a legal firm for translation services related to prisoner cases. The mission failed to obtain prior approval from the Ministry of Foreign Affairs (MOFA) or the Law and Justice Division. Despite requests for clarification, no response was provided by the concerned department.
In Berlin, a fixed deposit account worth Rs26.44 million (€87,000) raised concerns about potential misappropriation. AGPR audit observed that the amount, recorded as a fixed deposit in the mission’s cashbook until December 2020, was no longer reflected in the records starting January 2021. The funds were later attributed to repair and maintenance expenses without supporting documentation. The DAC directed the Ministry to verify the records, but no further progress was reported.
The audit also highlighted non-compliance with the Treasury Single Account (TSA) rules by the Institute of Regional Studies in Islamabad. The institute maintained a welfare bank account with Rs3.462 million without obtaining approval from the Finance Division, making the account’s operation irregular. The DAC requested clarification regarding the account’s source and approval, but the issue remains unresolved.
Another major finding involved the failure of several missions to claim VAT refunds from host governments, resulting in a loss of Rs64.695 million to the national exchequer. Despite directives from the DAC to address the issue, no action has been taken to recover the amounts.
The audit recommends immediate compliance with DAC directives, adherence to procurement regulations, and improved oversight mechanisms to ensure the proper utilisation of public funds.
Copyright Business Recorder, 2025
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