Financial Irregularities Exceeding Rs 3 Billion Uncovered in Aviation Ministry

ISLAMABAD: The Audit Report 2024–25 has revealed financial mismanagement surpassing Rs 3 billion within the Ministry of Aviation and its associated bodies, including the Pakistan Civil Aviation Authority (PCAA) and the Airport Security Force (ASF).

The report highlights anomalies such as improper contract allocations, unapproved disbursements, inadequate record maintenance, and compromised internal oversight across various operational areas.

Major Losses Stem from Unrecovered Dues

A substantial portion of the identified losses, amounting to Rs 2.3 billion, is attributed to the PCAA’s failure to recoup long-overdue payments from airlines and relevant entities.

Despite recurring observations in prior audits, these outstanding debts remain unsettled, underscoring the presence of ineffective enforcement protocols and inadequate follow-up measures by the authority.

Irregular Consultancy Expenditures

An additional Rs313.6 million was flagged as irregular spending related to consultancy agreements awarded without adherence to established Public Procurement Rules (PPRA).

Auditors determined that the PCAA engaged consultants for both design and oversight roles without conducting competitive bidding processes or obtaining proper authorization, raising apprehensions regarding both transparency and the efficient use of funds.

Unsanctioned Procurement Activities

Independently, the PCAA expended Rs154.6 million on acquiring equipment and services absent of necessary approvals from the designated authority. The report also denoted unapproved advance payments alongside incomplete documentation, thereby casting uncertainty over adherence to compliance standards within the organization.

ASF Financial Rule Violations

The ASF was also cited for infractions of financial regulations.

An expenditure of Rs45.8 million was incurred for procuring vehicles and uniform items without adhering to appropriate tendering guidelines.

Moreover, the ASF did not maintain comprehensive inventory records, complicating physical verification and accountability procedures.

In a separate observation, Rs125 million was disbursed as rental payments to a private property owner for an ASF installation, lacking proper documentation to substantiate occupancy or the specifics of the lease arrangement.

Auditors pointed out that extensions to the lease and escalated payments lacked mandatory legal review.

Asset Management Deficiencies

The audit also brought to light concerns pertaining to asset management practices.

Various properties and equipment items purchased by the PCAA and ASF were not formally recorded in fixed asset registers, thereby heightening the potential for misuse or untraceable loss.

Lack of Remedial Action

Despite the repeated detection of similar audit findings throughout the years, the relevant departments have not presented suitable responses or remediation strategies.

In numerous instances, Departmental Accounts Committee (DAC) meetings were not convened, and no accountability measures were enacted.

The audit report advocates for rigorous compliance with financial stipulations, the recovery of outstanding financial obligations, and the assignment of responsibility to functionaries implicated in circumventing procurement and authorization protocols. It further advises bolstering internal audit functionalities within both the ministry and its subordinate organizations to avert future recurrences.