Audit reports for FY2024-25: Govt initiates probe into foreign-funded uplift projects

ISLAMABAD: The government has initiated an investigation into foreign-funded development projects highlighted in the audit reports for the fiscal year 2024-25. This action aims to address discrepancies identified by the International Monetary Fund (IMF).

Syed Ali Murtaza, Secretary of the Ministry of Water Resources, and officials from the Water and Power Development Authority (Wapda) provided these details during a meeting of the Senate Standing Committee on Water Resources, chaired by Senator Shahadat Awan.

Secretary Murtaza explained that the Departmental Accounts Committee (DAC) was reviewing audit reports from the fiscal year 2023-24 in chronological order.

Wapda planning work on Chashma Lift Canal project

However, the Auditor General’s Office directed the committee to prioritize the review of audit reports for foreign-funded projects from the fiscal year 2024-25 due to the IMF’s programme requirements.

The committee was informed that the DAC had completed reviews of audit reports up to fiscal year 2022-23, with the exception of the report for the fiscal year 2023-24 concerning the Dasu Hydropower Project. Additionally, the audit has recommended conducting special audits of foreign-funded projects, such as the land acquisition for the Dasu project.

The committee expressed dissatisfaction with the Ministry of Water and Power and Wapda for not taking action against individuals found involved in financial misappropriation and other illegal activities that resulted in significant financial losses to the national exchequer.

Secretary Murtaza clarified that audit reports represent the Auditor General of Pakistan’s perspective, many of which are contested by the concerned departments. He noted that inquiries can only be initiated by the DAC or the Public Accounts Committee (PAC), which are the competent forums for such matters. He further mentioned that audit officials typically adjust 18% of audit reports, acknowledging errors in the issues pointed out in those reports.

The committee was informed that the DAC had recently ordered an inquiry into a Rs 29 billion discrepancy due to a design change in the Dasu Hydropower Project. Secretary Murtaza stated that the World Bank’s role had been identified in the investigation, as the Bank had issued a No Objection Letter to replace part of the cutting cover benches with a tunnel on the Karakoram Highway (KKH). The contractor was mobilized under the World Bank’s direction, despite issues in land acquisition. The inquiry is expected to be completed within three months due to its complexity.

The committee was also informed that the PAC had ordered 56 inquiries, of which 43 are completed, 10 are in progress, and records for 3 are missing or unresolved. Out of the 71 audit reports issued by the Auditor General of Pakistan, action has been taken on 20, 13 require further action, and 8 are with the Federal Investigation Agency (FIA), the National Accountability Bureau (NAB), or in the courts.

Chairman Awan questioned why the ministry and Wapda do not take immediate action against responsible individuals when conducting inquiries and instead wait for the DAC or PAC to order action.

The issue of procurement of vehicles for projects in violation of the Prime Minister’s austerity directives was also raised. Secretary Murtaza challenged the chairman, stating that if the vehicles were for the project, then the prime minister’s directives were applicable.

This investigation underscores the government’s commitment to ensuring transparency and accountability in the utilisation of foreign funds for development projects.

Senator Shahadat Awan stated that 187 audit paras are pending, with some having been pending since 1985, and surprisingly, the ministry didn’t have any records in some cases. Secretary Water Resources apprised that the inquiry on all the audit paras will be conducted in chronological order; however, priority is given to foreign-aided projects.

Chairman Committee also highlighted the purchase of 78 vehicles at a cost of Rs. 74 crores. He stated that these vehicles were bought against the Cabinet directive of austerity measures. However, the inquiry into these purchases was initiated in March 2022 and has not been completed to date.

After detailed deliberation, the Committee recommended that the ministry provide the details of cases pending before the courts. The Committee also recommended providing the details of individuals against whom responsibilities have been fixed upon the conclusion of inquiries.

In attendance Senators Saadia Abbasi, Mohammad Humayun Mohmand, Faisal Saleem Rehman, Secretary Water Resources Syed Ali Murtaza, Chairman WAPDA Lt General Sajjad Ghani (Retd) along with other senior officials of relevant Departments.

Copyright Business Recorder, 2025