Islamabad: The Auditor General of Pakistan (AGP) has identified financial irregularities and violations of rules amounting to more than Rs7.02 billion in the Ministry of Water Resources (MoWR) and its subordinate organizations during the 2024–25 fiscal year, according to a comprehensive audit report.
The audit examined the financial and administrative operations of 112 administrative units operating under the Ministry of Water Resources. During the review, auditors scrutinized Rs359.6 billion in expenditures and Rs194.2 billion in receipts to assess compliance with financial regulations and public sector governance standards.
Despite the scale of the irregularities identified, the report states that only Rs2.821 million (approximately Rs28.21 lakh) was recovered between January and December, with the recovered amount having been officially verified.
Weak Internal Controls Identified
The newly released audit report highlights serious weaknesses in internal control mechanisms, widespread violations of public procurement rules, and significant administrative shortcomings within the ministry and its affiliated organizations.
Among the institutions covered by the audit is the Water and Power Development Authority (WAPDA), one of Pakistan’s largest public-sector organizations responsible for water resource development and hydropower projects.
According to the AGP, deficiencies in oversight and compliance created conditions that allowed financial mismanagement and procedural violations to occur.
Seven Categories of Institutional Failures
The Auditor General classified the reported irregularities into seven major categories of institutional failures, providing a framework for identifying the nature and causes of the weaknesses observed during the audit.
The report indicates that the largest number of irregularities fell under financial management, suggesting shortcomings in budgeting, expenditure controls, accounting practices, and financial oversight.
Other observations reportedly relate to procurement practices, administrative procedures, and weaknesses in governance systems designed to ensure accountability and transparency in the use of public funds.
Procurement Rules Violated
The audit points to extensive violations of government procurement regulations, raising concerns about whether contracts, purchases, and expenditures were carried out in accordance with prescribed legal and financial procedures.
Such violations can affect transparency, competition, and value for public money, making procurement one of the key areas requiring corrective action.
Limited Recovery Despite Large Irregularities
One of the report’s notable findings is the substantial gap between the total value of identified irregularities and the amount actually recovered.
While irregularities exceeded Rs7 billion, recoveries amounted to only Rs2.821 million, highlighting challenges in enforcing accountability and recovering public funds where financial violations are detected.
Need for Stronger Oversight
The audit underscores the need to strengthen internal financial controls, improve compliance with procurement laws, enhance monitoring mechanisms, and reinforce institutional accountability across the Ministry of Water Resources and its affiliated organizations.
The Auditor General’s findings are expected to be reviewed by the Public Accounts Committee (PAC) and other relevant oversight bodies, which may seek explanations from ministry officials and recommend corrective measures where necessary.
The report serves as an important accountability document aimed at improving financial governance, reducing administrative weaknesses, and ensuring that public resources are managed in accordance with applicable laws and regulations.
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