PESHAWAR: An audit report has found financial irregularities worth Rs18.78 billion in the Khyber Pakhtunkhwa government’s Hydel Development Fund. It also pointed out an alleged loss of more than Rs5.79 billion to the provincial exchequer.
The Hydel Development Fund was set up to support hydropower projects in Khyber Pakhtunkhwa. It is managed by a board headed by the Chief Minister of Khyber Pakhtunkhwa. The audit report identified several financial and administrative irregularities in the management and utilisation of the fund.
According to the report, more than Rs13.14 billion was transferred to the Pakhtunkhwa Energy Development Organization (PEDO) without approval from the cabinet committee. The audit also noted that profits amounting to Rs5.48 billion generated from hydel projects were not deposited into the provincial treasury.
It further pointed out that Rs4.30 billion remained unutilised with PEDO, resulting in a loss of profit amounting to millions of rupees. The report also highlighted the payment of Rs179.2 million in rent for a building that was not used even for a single day. An additional Rs4.2 million was spent on the renovation of the unused building.
The audit report said a further loss of Rs19.1 million occurred due to the delayed deposit of profits into the bank account. It also declared irregular payment of more than Rs7.6 million made through unauthorised recruitment in the fund.
Also, the report detected an alleged fraud involving Rs2.077 million in the Hydel Development Fund. It noted that despite directions from the Federal Investigation Agency (FIA), a departmental inquiry into the alleged fraud was not conducted. The auditors recommended an investigation into the financial irregularities and called for those responsible to be identified and held accountable.
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