Balochistan PAC Audit Report Uncovers Massive Irregularities in PHE Department

QUETTA: The Balochistan PAC audit report has revealed extensive financial irregularities within the Public Health Engineering (PHE) Department and several major infrastructure projects, including the delayed Mangi Dam scheme and Gwadar water supply initiatives.

Asghar Ali Tareen chaired the session that exposed unauthorised spending, tax evasion, and violations of procurement rules. Committee members Engineers Zamrak Khan Achakzai, Zabid Ali Reki, Ghulam Dostgir Badini, Fazal Qadir Mandokhail, and others attended, along with senior audit and finance officials. Opposition Leader Younis Aziz Zehri and Maulana Hidayatur Rahman participated as special guests.

The Balochistan PAC audit report, presented by DG Audit Shuja Ali, was based on a special audit conducted in November 2022, covering fiscal years 2018 to 2021 for the PHE Department in Gwadar. It showed that out of over Rs5.9 billion spent, a major portion lacked official documentation, raising severe transparency issues.

The report highlighted that income tax was not deducted from payments worth nearly Rs240 million, breaching legal requirements. Additionally, projects valued at around Rs4.9 billion were awarded without public tenders, directly violating procurement laws. Another Rs380 million in irregularities were noted in water supply schemes during drought periods.

Committee Slams Fuel Procurement and Dam Delays

Suspicious expenditures were also flagged in the purchase of fuel, oil, lubricants, and repair supplies. The executive engineer in Gwadar was found to have made multi-crore purchases without proper records, leading the committee to classify these as suspicious transactions.

Committee members demanded inquiries against officials responsible for failing to maintain financial transparency. Chairman Tareen reiterated that protecting public funds is a top priority. “Those misusing national resources will not go unpunished,” he warned, adding that while explanations will be heard, decisive action will follow if wrongdoing is confirmed.

Maulana Hidayatur Rahman criticised the handling of the Gwadar water project, claiming the billions spent could have imported water from abroad if used honestly. Fazal Qadir Mandokhail proposed referring the matter to the National Accountability Bureau (NAB), although others recommended a detailed inquiry before escalating the issue.

The session also examined the audit findings for the Mangi Dam project, which faced a massive delay and a 42% cost escalation. Originally budgeted at Rs7 billion with a completion target of June 2022, the project now exceeds Rs18 billion. The audit blamed poor planning, repeated design revisions, and consultant inefficiencies.

The DG Audit confirmed that no progress reports had been submitted for the dam, drawing strong criticism from the PAC. Chairman Tareen called this a “colossal institutional failure,” especially since people in the region still lack access to clean water. He announced plans to personally inspect the Mangi Dam site alongside committee members.

According to the project director, the dam could be completed by December 2025—if funds are released in time. Tareen said he would write to the Balochistan chief secretary to expedite disbursement and warned of another special audit if the deadline is missed.

The committee also discovered that over 1.43 million litres of diesel were distributed to water tankers supplying Gwadar without proper record-keeping or storage logs, again violating procurement laws.

Chairman Tareen concluded by reaffirming the PAC’s commitment to not only expose financial corruption but also push for legal action. “We must restore public trust in governance by holding accountable those who misuse public funds,” he stated.