Delayed audit of state institutions alarms IMF

ISLAMABAD:

The International Monetary Fund (IMF) has raised concerns over delays in the audit process of state institutions, Auditor General of Pakistan (AGP) Ajmal Gondal informed the Public Accounts Committee (PAC) on Wednesday.

Addressing the meeting, AGP Gondal revealed that the IMF had expressed alarm over nearly 600,000 pending audit paras.

“The IMF has demanded early settlement of audit cases of institutions,” he said, noting that around 500,000 to 600,000 audit objections related to various ministries and institutions remain unresolved.

Despite parliamentary directives, no chief internal accountant has been appointed in state institutions, Gondal stated. “The financial audit system is flawed due to non-implementation of the rules,” he said.

“Secretaries and chief financial officers of institutions are not clearing their audits,” he added, highlighting that only 15 institutions have chief financial officers, but none have a chief internal accountant.

He stressed the absence of internal audit systems across institutions, which has led to a growing backlog of cases.

“The number of pending audit cases with the PAC has increased to more than 30,000,” the AGP informed the committee.

The PAC also discussed the removal of an FBR official who allegedly refused to install a flag on the finance minister’s car. FBR chairman explained that the officer used inappropriate language about the minister’s office, which led to her removal.

Committee members debated whether a non-customs-paid vehicle could even be flagged, but the FBR chairman admitted he had not investigated the matter. PML-N’s Afnan Ullah Khan urged against dismissing honest officials without due process.

The chairman assured the committee that fair treatment would be ensured.