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AGP flags financial mismanagement in CDA, MCI

Highlights unauthorised use. of Endowment Fund, failure to establish mandatory pension, ‘CDA funds

By Wagar Gillaal =O. The audit teport, No. DGAWE- Muluipte departmental Inquiries into that the Authority’s accounts were had been retained in low-interest 24. Although the Federal Gov-.
26-002, for the audit year 2025-26 allegations of corruption, record certified by chartered accountants accounts instead of being invested ernment released Rs3,587.819
ISLAMABAD: An audit | report by and the financlal years 2023-24 and tampering and fake property report- duly appointed within 45 days of in higher-yleld instruments. As of million under the Maintenance
the Auditor General of Pakistan has 2024-25, a copy of which is available ing have remained pending, allow- the close of each financial year, It June 30, 2025, bank statements Grant (Grant-in-Aid Revenue), the
highlighted weak govemance, poor with The News, primarily aimed to ing the accused officials to continue also failed to prepare annual finan. showed a combined balance of Authority incurred expenditure’
implementation of internal con- evaluate financial discipline, regu- serving without accountability, ~~ cial statements as required under Rs7.452 billion, whereas the cor- amounting to Rs4,423.233 million, |
trols, and deficiencies in defined latory compliance, and the manage. The audit further noted that the the CDA Ordinance, 1060. Accord- responding book balance was only The audit held that this over-utili-
roles and responsibilities, as well ment of high-value public land and CDA had neither maintained a con- ing to the audit, engaging char- Rs5.614 billion. The unreconciled sation of funds beyond the sanc-
as shortcomings in the financial infrastructure assets, It also sought solidated accounting system nor tered accountants after the close difference of Rs1.938 billion had tioned limit and actual releases
Management of the Capital Devel- to identify systemic vulnerabilities prepared a balance sheet or finan: of the financial y                  itis neither been reconciled nor Prop.  constituted a significant violation
opment Authority (CDA) and the in land disposal, building control cial statements for 2024-25, while not tenable. - -.                  ., erly documented. -- -              ? of the System of Financial Con-
Metropolitan Corporation Islama- and budgetary governance that lead separate accounts for the MCI were = The audit observed a systemic) The matter was discussed at trol and Budgeting. In response, :
bad GICD.                      :      to revenue leakages and the erosion also not prepared. In response, the failure in financial reconciliation, a Departmental Audit Committee the management stated that the
* ‘The audit found that the “entity of public trust, The audit focused on CDA said it had engaged a chartered highlighted by an unreconciled (DAC) meeting held on February major portion of the Maintenance.
failed to comply with fundamental financial propricty and accountabil- accountancy firm to prepare the gap of Rs1.03 billion as of June 17, 2026, during which the manage- Grant is utilised for the mainte-
statulory requirements, most nota- ity, contractual and regulatory com- Authority's financial statements for 30, 2025, along with significant ment explained that the difference nance and repair of government
bly the non-preparation of manda- pliance, and administrative, techn the past five years,                 + variances In high-value accounts between the book and bank bal- buildings and residential quarters, '
tory balance sheets and financial cal and quality oversight...           The audit observed that an maintained with the National ances was due to issued cheques It added that the grant is also’
statements as required under the *- The andit’s key findings included Endowment Fund was created Bank of Pakistan (NBP) and MCB, that had not yet been presented used to meet unavoidable and
CDA Ordinance, 1960, It assessed the non-preparation of annual finan- on August 2, 2023 with an initial where bank balances substantially for payment, It further stated that obligatory expenditure, including
that the CDa’s financial integrity cial statements, unauthorised use allocation of Rsl.17 billion. How. exceeded book records. The varie Rs22.700 million had been depos- the payment of salaries and allows |
was further compromised by the of the Endowment Fund for gen- ever, the amount was diverted to ance amounted to Rs600 million in’ ited into NBP Account No, NIDA ances to employers,: ~         :
‘unauthorised withdrawal of Endow- eral expenditure, non-compliance another account on October 11, NGP accounts and Rs766 million in 02-0 and, therefore, there was no. The audit further observed that
ment Fund money for general with statutory budget submission 2023 and February 6, 2025, before MCB accounts, The audit further overdraft of Rs18 million fn that despite two explicit Board approv-.
expenditure, the non-establishment deadlines, failure to establish the being transferred to the CDA’s noted that funds had been unevenly account, The DAC directed the CDA als and the passage of more than
of the mandatory Pension Fund mandatory Pension Fund and Cap- main account on February 6, 2025 distributed between the two banks, to ensure monthly reconciliation two years since the Board's deci-
and Capital Development Author- ital Development Authority Fund for general expenditure without with nearly 60 per cent of total bal- in accordance with the prescribed sion, the CDA had neither estab-
ity Fund (CDAF), and the lack of (CDAF), and the lack of reconcilia a disclosure certificate or Board ances concentrated in them,          procedure and to provide the Audit Ished the Pension Fund nor Initi-:
reconciliation between revenue tion between departmental revenue approval, apparently to cover short- .-- Moreover, the audit identified a‘ authorities with detailed reconcilia- ated the required transfer of auction
receipts and treasury records, The receipts and treasury records, creat- term budget deficits. The audit discrepancy of Rs18 million in one tion statements,                  proceeds into the fund. There
report further noted that the non-fi- ing a high risk of fraud. .              maintained that the diversion of National Bank National Income _. The audit also observed that was no evidence that a dedicated
nalisation of departmental inquiries *- It also identified systemic weake  money from the Endowment Fund Daily Account (NIDA), where the the Capital Development Author. account had been opened or that a
by the Authority represents a high- nesses in the Land Directorate that compromises the Authority’s future book balance stood at Rs130 million ity incurred excess expenditure mechanism had been established to
risk area, ag it weakens the account- enabled the unauthorised alteration financial security and sustainability. while the bank statement reflected of Rs$35.414 millton beyond its track and transfer the required 2.5
ability system and allows corrupt of compensation instruments and “- The audit further contended a balance of Rs112 million. It fur- authorised financial releases per cent share of auction proceeds
practices to continue, -                the embezzlement of public funds. that the CDA had failed to ensure ther observed that Rs7,45 billion during the financial year 2023+ into the Pension Fund. .


F. No. 2-211/2025-H-1
GOVERNMENT OF PAKISTAN

MINISTRY. OF. NATIONAL HEALTH SERVICES,
REGULATIONS & COORDINATION        :
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Invitation to firms for the provision of human resource


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