Auditor General Finds Massive Irregularities in Southern Punjab’s local government institutions

Billions of rupees in financial irregularities have been uncovered in Southern Punjab’s local government institutions, as the Auditor General of Pakistan’s report for 2022–23 revealed missing records, procedural violations, fraud, and pension discrepancies, raising serious concerns over governance and internal controls.

The audit, covering 128 local government institutions across Southern Punjab, found that financial mismanagement was widespread. According to the report, records worth Rs12.87 billion were not produced in 53 cases, while procedural violations amounting to Rs9.14 billion were identified in 368 cases. In addition, other financial irregularities totaling Rs101.42 billion were flagged in 472 cases, highlighting deep rooted weaknesses in financial oversight.

The report also pointed to fraud and misappropriation of Rs14.2 million in three cases, along with pension-related irregularities of Rs95.8 million in another three cases. A major concern raised was the absence of effective internal audit systems in several districts. The lack of internal controls, coupled with administrative negligence, was cited as a key reason behind these lapses.

Although audit teams reported recoveries exceeding Rs7.1 billion, only Rs114.5 million could be verified. The Auditor General directed Principal Accounting Officers to produce missing records, take action against responsible officials, investigate fraud and wasteful spending, and ensure compliance with Punjab Procurement Rules. The report also stressed the need for proper pension documentation, including life and no-remarriage certificates.

Audit observations of local governments have remained a recurring issue in Punjab, often linked to weak monitoring and poor record keeping. The latest findings reinforce the need for structural reforms, stronger internal audit departments, and effective accountability mechanisms to prevent further financial losses and restore public trust.