GILGIT: The Auditor-General of Gilgit-Baltistan (AGGB) has uncovered financial irregularities worth over Rs122.59 billion across various departments of the Gilgit-Baltistan government in an audit report on the Accounts of the Government of Gilgit-Baltistan for 2024-25.
According to report, 188 formations from 35 departments were examined, covering a total expenditure of Rs362.117 billion during the financial years 2022-23 and 2023-24.
The report highlighted a series of irregularities, including HR and employee-related violations, such as issues with recruitment rules and open competition, amounting to Rs7,371.249 million in 38 cases. Procurement-related breaches—including violations of General Financial Rules (GFR), Final Tax Regime (FTR), Public Procurement Regulatory Authority (PPRA) rules, Central Public Works Department (CPWD) Code, and Rules of Business—amounted to Rs59,966.316 million in 81 cases.
It also pointed to financial mismanagement in commercial bank accounts, including improper account openings and fund mismanagement, totaling Rs30,599.135 million in 13 cases.
Additionally, value-for-money and service delivery issues, such as misuse of public assets, irregular fund releases, project delays, and non-completion of financial adjustments, were found to total Rs22,012.481 million across 80 cases. The report also noted a failure to recover Rs2,637.765 million in 55 cases.
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In addition to these irregularities, the audit highlighted fraud, embezzlement, and misappropriation, including cases of overwriting and counterfeit figures, totaling Rs1.498 million in one case.
The Audit Report is based on the examination of the accounts of the Government of Gilgit-Baltistan for the Financial Year 2023-24, along with some formations from the previous fiscal year. The main body of the Audit Report includes only systemic issues and audit findings valuing Rs1 million or more.
“There are certain audit paras which were also reported in the last year(s) Audit Report(s) for the financial year(s) 2019-20, 2020-21, 2021-22 and 2022-23. Recurrence of such irregularities is a matter of concern and needs to be addressed,” reads the report.
The report noticed that the internal audit units were non-existent to a large extent and instances of failure of internal control were rampant.
“Major issues pointed out during audit were admitted by the management and corrective/remedial measures were initiated. The management keenly reviewed strengthening of internal controls and taking corrective measures thereupon,” the report adds.
The audit report said that the issue regarding embezzlement requires special attention for taking preventive measures to control the recurrence of such incidents in the future besides investigating the highlighted issues.
The report recommended that appointments be made in accordance with recruitment rules on merit through open competition.
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It also recommended that procurement of goods, services and works contracts be made and executed in compliance with the provisions of GFR, Public Procurement Rules and instructions of Pakistan Engineering Council.
The auditor recommended that all unauthorized bank accounts be closed and funds should be transferred to Gilgit-Baltistan Consolidated Fund. The report said that government funds should be utilized in the most economical and efficient manner to obtain optimum benefits.
“Recovery of overpaid/excess amounts should be made and deposited into the government treasury,” the report added.