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A recent PSEB audit report has uncovered major financial irregularities within the Pakistan Software Export Board, citing issues such as misuse of funds, unsecured advance payments, and questionable rehiring practices. Documents detailing the audit findings, reviewed by TechJuice, shed light on multiple areas where compliance and governance fell short, prompting strong recommendations for corrective action.
Irregular Withdrawal of Funds from Assignment Accounts
Under paras 11.1.4.2 and 11.1.4.5, the PSEB audit report revealed that funds amounting to Rs105.593 million and Rs20.733 million were withdrawn from assignment accounts for purposes outside their original allocation. This included spending on advances, medical allowances, and leave encashments — in violation of financial rules — which left funds unutilized and created gaps in terminal liabilities that could impact PSEB’s operations.
The Departmental Accounts Committee (DAC) urged the organization to justify these fund transfers, properly allocate terminal liabilities, and work with the Controller & Auditor General’s Office (C&AO) and MoITT to tighten assignment account procedures. PSEB management responded by asserting the funds were used within approved budgets but agreed to revisit the procedure to ensure compliance.
Irregular Re-employment After Retirement
In para 11.1.4.3, the audit flagged the re-employment of an officer post-retirement without advertisement or due competitive process. Payments totaling Rs5.80 million were also improperly made from the project budget instead of from establishment funds, contravening government norms.
The DAC recommended PSEB obtain the necessary extension approval from the Establishment Division and keep audit authorities updated. The board reported that an extension request was submitted and awaits a decision.
Unsecured Advances Given to Vendors
The audit under para 11.1.4.4 disclosed advance payments of Rs10.592 million to vendors for IT training and consultancy without any bank guarantees, leaving these advances unsecured and exposing PSEB to recovery risks. Some of these advances remain unpaid, with no fulfillment of contractual obligations.
To rectify this, DAC directed the board to aggressively recover outstanding amounts, require bank guarantees in future agreements, and expedite arbitration or refer matters to the FIA for deeper investigation. Management confirmed ongoing recovery efforts and formal referrals to the FIA.
