Aviation Ministry and attached bodies implicated in Rs. 3 billion financial mismanagement
The Ministry of Aviation and its attached bodies, including
the Pakistan Civil Aviation Authority (PCAA) and the Airport Security Force
(ASF), have been implicated in financial mismanagement exceeding Rs 3 billion,
according to the Audit Report for 2024-25.
The audit highlights widespread irregularities, including
unauthorized payments, weak internal controls, poor recordkeeping, and
irregular contract awards.
A significant portion of the shortfall—Rs 2.3 billion—was
attributed to PCAA’s failure to recover long-standing dues from airlines and
other stakeholders. Despite repeated audit observations in previous years,
these receivables remain unsettled, raising concerns about enforcement and
follow-up mechanisms.
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The report also flagged Rs 313.6 million spent on
consultancy contracts awarded without adherence to Public Procurement Rules
(PPRA). Consultants were hired for design and supervision tasks without competitive
bidding or proper approvals, undermining transparency.
Furthermore, the PCAA spent Rs 154.6 million on procurement
without proper authorization, with discrepancies noted in advance payments and
missing documentation, pointing to a lack of compliance culture.
The ASF was similarly found to have breached financial
procedures, including Rs 45.8 million spent on vehicles and uniform procurement
without following proper tendering processes. The force also failed to maintain
accurate inventory records, affecting accountability.
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In addition, Rs 125 million was reportedly paid as rent to a
private landlord for an ASF camp, with no supporting documentation for lease
terms or space utilization. Lease extensions and increased payments lacked
legal vetting, casting doubts on the transaction’s legitimacy.
The audit further identified shortcomings in asset
management, with multiple properties and equipment missing from fixed asset
registers, increasing the risk of misuse or loss. Despite repeated findings
over the years, the concerned departments failed to provide satisfactory
responses or corrective actions.
The report urges strict compliance with financial
regulations, prompt recovery of outstanding dues, and accountability for
officials who bypassed procurement procedures. It also recommends strengthening
internal audit functions to prevent similar issues in the future.
Source: Profit Pakistan