KE, AGP at odds over ‘subsidy data’ issue

Updated 05 Oct, 2024

ISLAMABAD: The Auditor General of Pakistan (AGP) and K-Electric (KE) are reportedly at odds over the provision of subsidy data from February 2004-05 to 2012-23, following discrepancies identified in subsidy claims, informed sources told Business Recorder.

In a letter titled “Special Audit Report on the Claims of K-Electric for the Tariff Differential Subsidy (TDS) for the Period February 2004-05 to 2012-13” addressed to the Accounts Officer (B&A) of the Power Division, the Office of the Director General, Commercial Audit & Evaluation (South), Karachi, indicated that the audit of KE had been completed.

Departmental Accounts Committee (DAC) meetings were held regarding the report, which noted significant record non-production and scope limitations.

The report was submitted to the DG Audit (Power) in Lahore on October 26, 2020, for further action. The Audit & Evaluation (South), Karachi, asserted that KE did not provide relevant information for verification. Consequently, in response to KE’s letter dated September 5, 2024, a verifying officer was dispatched to KE’s Head Office in Karachi, requesting the necessary records through a letter dated September 6, 2024.

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The audit claimed that KE failed to provide relevant information for verification. Though it was verbally stated that a KE representative would contact the Audit regarding the verification process, no further action has been taken by KE.

In response to the audit, KE’s Director of Finance, Ayaz Jaffar Ahmed, explained that a meeting could not occur due to lack of prior notice regarding the verifying officer’s visit. However, a KE team later contacted the DG Audit, C&E (South), and met with her on September 23, 2024. Subsequently, Audit Officer Raza Munir Alvi visited KE’s office on September 25, 2024.

During these meetings, KE updated the AGP team on the audit status and previous submissions, reiterating that all relevant information for the audit had already been provided. KE also noted that it has not yet received a list of specific records requested in the DAC meeting held on February 26, 2021, and requested this from the audit officer.

“We reaffirm our commitment to resolving any outstanding matters in this respect. Our teams remain fully available for any discussions or cooperation required,” stated the Director of Finance.

Copyright Business Recorder, 2024

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