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In a startling audit disclosure, the Auditor General of Pakistan (AGP) has uncovered financial irregularities amounting to Rs 9.152 billion in the Ignite R&D Fund transfers. These funds, which were allocated to support innovation and ICT development, were instead diverted to unrelated financial needs, raising serious concerns about transparency and governance.
What the Audit Found on Ignite R&D Fund
According to the audit, Ignite transferred Rs 4.152 billion in 2013 to settle circular debt, an amount that remains unrecovered to this day. A second disbursement of Rs 5 billion took place in December 2023 on orders of the R&D Fund Policy Committee. Recovery was promised by the end of the fiscal year but never materialized.
The report highlighted that these fund transfers violated Section 33D (2) of the Pakistan Telecommunication Reorganization Act 1996 and the R&D Fund Rules 2006, both of which restrict the use of funds strictly to ICT-related research and development activities. The misuse of resources not only disrupted ongoing projects but also undermined the financial liquidity of Ignite.
Recurring Irregularities Raise Red Flags
Audit observations further revealed that this is not the first time Ignite’s funds have been misused. Similar irregularities worth Rs 6.76 billion were reported during Audit Year 2014-15. The recurrence of such practices was described as a matter of “serious concern,” fueling doubts about the integrity and governance of the fund, which is financed through contributions from telecom operators.
Ignite’s Response to R&D Fund Misuse
Ignite clarified that the transfers were carried out under federal government directives, implemented through the Ministry of IT, and aligned with the Finance Ministry’s instructions. However, the AGP rejected these explanations as “untenable,” stressing that such justifications could not override legal restrictions placed on the fund.
At a Departmental Accounts Committee meeting on December 12, 2024, Ignite’s management was directed to ensure recovery of the transferred funds and verify it through a follow-up audit. To date, no meaningful action has been taken.
These diversions jeopardize the sustainability of ICT innovation programs in Pakistan and erode the credibility of Ignite’s governance structure. With prior AGP reports already flagging over Rs 1.1 trillion in federal financial irregularities and Rs 1 trillion in Punjab alone, the Ignite case sits within a broader pattern of weak financial discipline across national institutions.
