PESHAWAR: A financial audit report for the fiscal year 2025 has uncovered serious irregularities in the distribution of Zakat funds in Khyber Pakhtunkhwa, including payments made to serving and retired government employees who were not eligible beneficiaries.
According to the audit findings, Zakat funds—intended for the underprivileged—were distributed among government employees ranging from Grade 1 to Grade 17. The report reveals that a total of 419 employees received more than Rs 5.3 million from the fund.
The breakdown shows that 317 federal employees and 33 from Khyber Pakhtunkhwa were among the recipients, along with 6 from Punjab, 5 from Sindh, and 3 from Balochistan. Of these, 15 employees received Rs 30,000 each, while 404 employees were given Rs 12,000 each under subsistence allowances.
The audit further highlights that even higher-grade officials were included, with two employees each from Grades 17 and 16, and 13 from Grade 15 receiving payments—despite not meeting the eligibility criteria for Zakat assistance.
The report clearly states that both serving and retired government employees do not qualify for subsistence allowances under Zakat regulations. It recommends immediate recovery of the distributed funds from these individuals and calls for strict action against members of Zakat committees involved in the irregularities.
Additionally, the audit uncovered that government employees were unlawfully appointed as members of district and local Zakat committees, which is a violation of the Zakat Act.
Further financial discrepancies were also noted, including Rs 19.7 million distributed to ineligible individuals under subsistence allowances and Rs 42 million in irregularities related to marriage grants. Moreover, 111 government employees received Rs 19.5 million in allowances while serving as committee members.

