02-08-2025
- Business
- Business Recorder
MoH&W, Pak PWD come under scrutiny after financial mismanagement flagged
ISLAMABAD: The Ministry of Housing and Works and its executing agency, Pakistan Public Works Department (Pak PWD), have come under scrutiny after the Audit Report 2024–25 flagged financial mismanagement, unauthorised payments, non-recoveries, and procedural violations amounting to over Rs3.63 billion.
The report highlights that Rs1.1 billion was paid to contractors for various civil works without following the required approval processes or verification protocols.
While names of contractors are not mentioned, audit officials noted that the payments were made without completion certificates or evidence of actual progress. Performance guarantees were often not obtained, and there were serious deviations from standard public procurement procedures.
An additional Rs225.9 million in public funds was lost due to inordinate delays in the construction of the Islamabad Model College for Boys, Margalla Town.
The project, originally approved in 2008 and revised multiple times until 2023, suffered from delayed land possession by CDA and slow disbursement. Audit held the project management responsible for this delay and cost escalation.
Another audit para revealed that Rs5.18 million was paid in advance to the CDA for the renovation of bathrooms in the Planning Commission's P Block, but the work remained incomplete even after 18 months. The CDA failed to submit any completion report or provide an account of the funds spent.
In a separate finding, encroachment and unauthorised allotment of over 29 kanals of land belonging to International Islamic University Islamabad (IIUI) was traced back to CDA's actions, which had allotted portions of the university's land to private individuals and retained heavy machinery within the university premises despite court orders and environmental concerns.
The report also identifies systemic issues in financial management and tenant oversight. Pak PWD failed to recover rent and utility bills from allottees of government residences, despite multiple reminders and audit observations in past years. The dues had accumulated over time, and neither eviction actions nor late payment penalties were enforced. Audit also noted the lack of updated tenancy records, making accountability more difficult.
Despite the scale of observations, no response was submitted by the Ministry or Pak PWD to most audit objections, and Departmental Accounts Committee (DAC) meetings were not convened in time. The report recommends fixing responsibility, recovery of outstanding dues, and strict enforcement of financial controls.
Copyright Business Recorder, 2025
