The Auditor General of Pakistan (AGP) has detected financial indiscipline, misappropriations and procedural irregularities up to the tune of Rs 18.082 billion in defence services covering unauthorized payments to contractors, non-recovery of cantonment taxes and unauthorized expenditures. According to audit report of AGP for 2015-16, available with Business Recorder, the AGP has also unearthed US $3.271 million worth of irregularities in foreign assisted projects of defence services.
The AGP conducted audit of defence services and found total recoverable worth Rs 5,021.910 million and US $ 0.214 million in its 61 cases. The auditor also pointed out the loss to the national exchequer valuing Rs 3,633.644 million and US $ 0.377 million in 8 cases. The unauthorized expenditure costs Rs 4,215.200 million and US $2.680 million in 23 cases. The cost of mis-procurement of stores amounting to Rs 5,175.449 million has been found in 22 cases.
Non-production of auditable record, worth Rs 36.077 million, has been pointed out in 2 cases. The AGP has also detected recoveries of Rs 54 billion from Defence institutions during 2015-16, detecting systemic issues of huge outstanding dues in cantonment boards, violation of public procurement rules and unauthorized expenditures, etc. According to the report, recovery of Rs 54 billion was pointed out during audit, out of which recovery of Rs 1.153 billion and US $ 0.110 million was effected during 2016-17 at the time of compilation of report.
As per the report, the final grant pertaining to Ministry of Defence for financial year 2015-16 was Rs 799.480 million against which an expenditure of Rs 791.569 million was incurred.