Pakistan cabinet rejects audit report detecting irregularities in COVID expenditure

After an audit report on Pakistan's COVID-19 expenditure detected massive irregularities of up to PKR 5.24 billion in the purchase of essentials such as sugar, ghee and flour by the Utility Stores Corporation (USC), Information Minister Fawad Chaudhry has come to Imran Khan government's rescue.

Chaudhry said that Pakistan Cabinet has rejected the audit report on COVID-19 spending by the country and asked three organisations to their presentation in this regard, Pakistani newspaper Dawn reported.

Chaudhary said that the Finance Ministry has already rejected the nation's Auditor-General Javaid Jahangir's report and the "Ehsaas programme in charge and PM’s aide Dr Sania Nishtar had also clarified the position of her organisation." 

Pakistan: Auditor detects massive irregularities in COVID-19 expenditure

The report on "expenditure incurred on COVID-19 by federal government" was based on an audit of several departments and organisations of the Pakistan government that incurred expenses during the pandemic on the provision of subsidised food items, relief activities and implementation of the Economic Stimulus Package.

The audit pointed out irregularities in government interventions to ensure the availability of essential items including sugar, oil and ghee, wheat flour, pulses and rice.

Here are some of the flaws highlighted in the audit:

• Irregularities of up to PKR 5.24 billion were detected in buying sugar, ghee and wheat flour by the USC
• Lopsided contract and business with black-listed flour mills
• Sugar procurement at higher rates resulted in PKR 100.730 million loss to the USC
• Out of the Economic Stimulus Package  (ESP), PKR 314 billion were not released
• Loss of $9,94,000 to the public exchequer on account of purchase of ventilators at higher rates
• Non-transparent procurement of COVID-19 equipment from China
• The USC made procurement of ghee or oil for PKR 1,601.964 million from firms without a competitive tendering process. The ghee procured from these firms had been declared unfit for human consumption in the past.
• A loss of PKR 48.65 million due to the non-imposition of stamp duty
• Weak contract management by the NDMA
• The Master Business Management Consortium  (MBMC) caused a loss of PKR 196.400 million to the USC by compromising the quality of Atta
• $4 million grant by China to build a 250 bed-Isolation Hospital and Infections Treatment Center not used by the NDMA