ISLAMABAD - Auditor General of Pakistan has raised audit observations amounting to Rs11.564 billion to the accounts of Benazir Income Support Programme (BISP) for the financial year 2022-23, including unearthing doubtful registration of pregnant women under Nashunuma Nutrition Programme.
According the Auditor General of Pakistan report on the account of BISP for the audit year of 2023-24, fraudulent withdrawals of Rs30.040 million on account of Tirah IDPs programme by unauthorized/ineligible persons.
BISP Board approved to pay one-time relief to every married woman of Internally Displaced Persons (IDPs) of Tirah Valley. Audit observed that 1,502 unauthorised and ineligible persons were allowed to withdraw an amount of Rs30.040 million @ Rs20,000 per person through fraudulent enrolment which was otherwise approved for IDPs of Tirah Valley. The audit also pointed out a recoverable amount of Rs1,980.479 million.
Irregular refund of Rs2,854.87 million by HBL to government of Sindh without any acknowledgement and reconciliation of difference amount Rs4,210.58 million. Sindh Cabinet in March 2023 allowed cash transfer of Rs2000 each under the Flour Relief Scheme shall be paid to 7.8 million families approx of Sindh province with BISP’s PMT score in the range upto 60.
Audit observed that HBL vide letter dated June 27, 2023 authorised Chief Manager, Banking Service Corporation, State Bank of Pakistan to debit its current account an amount of Rs2,855 million in lieu of unutilized amount of Wheat Flour Subsidy. Audit further observed that confirmation/ acknowledgement of credit of such amount in government of Sindh Exchequer was not found on record, the amount was refunded without proper reconciliation of accounts. Difference of Rs4,210.58 million (upto May 2023) was yet to be reconciled.
The management replied that the audit of Sindh Wheat Flour Subsidy programme does not come under the purview of Federal Audit as the cash assistance under the programme was disbursed through funds provided by government of Sindh and that too were directly transferred in the main account of BISP maintained by HBL for Cluster-3, without involving Federal Treasury. The reply was not acceptable as funds were disbursed from the account operated by BISP and closing balances were refunded after the approval of BISP management.
The audit pointed out anomalies of Rs2,773.86 million in targeting/eligibility related data of seed subsidy shared by NITB and identified by government of Sindh.
Audit observed anomalies in targeting/eligibility related data of seed subsidy shared by NITB/identified by government of Sindh which include 1,469 cases, the master sheet did not provide the GPS location of the land against which payment of Rs29.55 million was made, 115,807 farmers were paid an amount of Rs2,675 million against only 16,459 GPS locations despite accuracy of upto 6 decimals, payment of Rs55.690 million was made to 2,706 farmers from 1300 households and in 412 cases payment was made to both spouses, seed subsidy payments amounting to Rs13.615 million were made to 486 farmers from districts out of Sindh province as per NSER survey. Age of 21 farmers, as per BISP database, was from 4-17 years.
The AGP has termed reply of BISP unacceptable. Unauthentic withdrawals of Rs839.719 million cash transfers from out of districts/province from ATMs located at remote districts. To the initial audit observation, the management replied that ATM withdrawals for payment represent a common occurrence, primarily designed to assist beneficiaries who have migrated. It is important to note that there are no district-check restrictions or controls placed on ATM withdrawals.
Delay in de-crediting of funds from beneficiaries accounts and interest earned by banks thereon on government funds of Rs793.518 million. Irregular transfer of Rs681.650 million Emergency Cash Disbursement to both spouses instead of one benefit per family. BISP disbursed an amount of Rs69,221.650 million amongst 2,768,866 beneficiaries under the initiative-Emergency Cash Disbursement to Affectees of Flash Floods-2022 during the financial year 2022-23. Audit held that an excess amount of Rs681.650 million was disbursed in violation of cabinet decision.
Irregular payment of Rs424.90 million on account of doubtful registration of pregnant women, due to low child-birth registration ratio: Audit observed that no child baby registration against 26,328 registered pregnant women (21% of total) was found in the record of Nashunuma Nutrition Program provided by BISP upto 30.06.2023. Audit held that non-reporting of child against registered pregnant women despite lapse of considerable time makes the early registration of pregnant women as doubtful. Moreover, an expenditure of Rs424.90 million incurred on such beneficiaries was held as doubtful.
The DAC directed BISP management to provide a revised reply and verify updated reasons of 14,232 pregnancies on sample basis from audit authorities. DAC further directed to get the status of the remaining 12,136 pregnant women verified and intimate the results to audit authorities and recovery be effected from beneficiaries where registration of Pregnant women were made on the basis of fake pregnancies. Audit recommends implementation of DAC decision
Irregular opening of BB Wallet Saving Accounts and dubious withdrawals of Cash Transfers from beneficiaries’ accounts – Rs355.698 million: Audit held that BB saving accounts were opened and withdrawals of Rs355.698 million made during the financial year 2022-23 without the knowledge of the beneficiaries which makes the entire list of withdrawals dubious. Audit recommends that the matter be referred to FIA for strict action against culprits and recovery of misappropriated amount.
Failure to maintain POS-Beneficiary ratio and non-imposition of Penalty – Rs254.950 million, BISP had more than 9 million of beneficiaries all over Pakistan during FY 2022-23, for which 8,408 POS were required to be in place for smooth and speedy disbursement of funds. Audit observed that out of 16,914 POS required for the following Zone/Regions of BISP, only 6,716 POS were active or functional during the financial year 2022-23 resulting into a deficiency of 10,198 POS.
Audit held that BISP did not deduct penalty from service charges of bank which resulted in loss to government exchequer Rs254.950 million. The issue was reported earlier also in the Audit Reports for the Audit Year 2019-20 and 2020-21 respectively having financial impact of Rs. 344.625 million.
Inadmissible payment of Rs224.39 million honorarium to BISP employees: BISP paid an amount of Rs224.387 million as honorarium to BISP Employees during the Financial Year 2022-23. Audit recommends to recover the inadmissible payments made on account of honorarium to the BISP employees.
Irregular payment of Rs114.503 million Tuition Fees and Scholarship to the students not in the original approved awardee list. Audit observed that HEIs accommodated 922 students in total that were not in the original finalized list of 10,000 students of Batch-III.
Irregular payments of Rs89.890 million Unconditional Cash Transfers (UCT) to the spouses of government employees and pensioners. Audit observed that 2235 Spouses of government employees and 704 spouses of government pensioners (that were drawing pension more than Rs30,000 per month) from Grade 1 to Grade 20 were drawing UCT payments during the FY 2022-23. The issue was reported earlier also in the Audit Reports for the Audit Year 2019-20, 2021-22 and 2022-23 respectively having financial impact of Rs23,689.497 million. Recurrence of same irregularity is a matter of serious concern.
Overpayment to the farmers on account of re-imbursement of Seed Subsidy in Sindh Province – Rs45.493 million: Audit observed that a sum of Rs45.487 million was overpaid to 2,896 farmers due to miscalculating payments at the rate of Rs. 5,000 per acre of owned land area instead of verified wheat area. Audit held that overpayment to the farmers amounting to Rs45.487 million was a violation of cabinet/govt of Sindh decision. Audit recommends that overpaid amount should be recovered besides fixing responsibility against person(s) at fault.
Irregular payment of Rs22.364 million against children of Nashonuma Nutrition Program after first quarter without provision of B-forms and Non-recovery of embezzled amount of Rs17.800 million were also pointed out by the audit.