The audit report revealed financial violations of up to 4 billion rupees at the Khyber Bakhtonkho and Gas Ltd. (KPOGCL) for the fiscal year 2021-22, which raised concerns about weak financial controls and administrative control within the state-owned entity.
According to the report prepared by the Pakistan Attorney General, a large part of the financial loss of the public treasury stems from paying salaries to employees who were appointed on a daily basis without permission or sound necessity. The audit results revealed that between the financial years 2014-15 and 2020-21, Kpogcl has recruited daily wage employees, without official directives, which led to irregular expenses.
It was claimed that the administration conducted this recruitment based on personal preferences instead of organizational needs, causing a financial loss of 1.57 billion rupees for surgery. The report attributed this loss to weak administrative control and mismanagement.
For the first time the authorities identified these violations in April 2022. However, in June 2022, the company responded by forming a high -level committee to investigate the matter. After the investigation, the committee imposed a huge fine on the former CEO and then removed it from his post.
Despite this procedure, the public auditor considered the company’s response insufficient and insisted that the losses are fully recovered by the former CEO.
The audit report also highlighted the additional financial mismanagement within the company. Unnecessary recruitment in various cadres led to a loss estimated at 400 million rupees, while illegal payments were made at 130 million rupees for provinces. Moreover, Kpogcl incurred 230 million rupees due to the unjustified payments of security and special allowances.
In addition, violations of 388 million rupees have been discovered in the appointments of the main internal auditor and corporate financing manager, which confirms the weak internal controls of the company.
The revelation has raised concerns about governance and accountability within Kpogcl, with calls for stronger supervision to prevent further financial management in the future.
