Rs1.68 Billion Financial Scandal Rocks KP’s Higher Education Sector

Nadeem Tanoli

Islamabad: The latest audit report has uncovered financial irregularities amounting to Rs 1.68 billion in the Higher Education Department (HED) Khyber-Pakhtunkhwa (KP) for the fiscal year 2023-24.

The report highlights widespread mismanagement, unauthorized appointments, procurement violations, and significant tax evasions within the department and public sector universities across the province.

The audit findings reveal weak financial planning and inefficient budget utilization in HED, which oversees 310 colleges, 7,118 teaching staff, and 258,400 students. While the non-development budget showed minor savings of Rs 1.91 million, the development budget exceeded allocations by Rs. 7.08 million, reflecting poor fiscal discipline.

Procurement malpractices 

One of the key concerns highlighted in the audit is the appointment of a retired professor as Director General (QAP) at the age of 62, in violation of Peshawar High Court directives.

This resulted in an unjustified expenditure of Rs 15.48 million in salaries.

Additionally, universities failed to deduct income tax from teaching staff, leading to a revenue loss of Rs 99.66 million.

Procurement malpractices were rampant, with Abdul Wali Khan University Mardan overpaying Rs 128.41 million to contractors and incurring a loss of Rs 118.88 million due to defective construction work.

Meanwhile, the University of Engineering & Technology Peshawar made irregular consultancy payments of Rs 8.57 million to NESPAK consultants, exceeding the prescribed limits.

Financial Mismanagement

The University of Swabi suffered a Rs 1.48 million loss due to the premature withdrawal of investments, while Gomal University DI Khan failed to properly invest pension and GP funds, creating liabilities of Rs 122.74 million.

Furthermore, universities failed to recover Rs124.36 million from PhD faculty members who did not return to serve after completing their studies abroad.

Unjustified Expenditures

The audit further exposed various unjustified expenditures, including Rs 5.20 million paid in Orderly Allowances to teaching staff and Rs154.81 million in unpaid scholarships granted to Afghan students.

Shaheed Benazir Bhutto University Sheringal also suffered infrastructural damage worth Rs 17.55 million due to the collapse of its multipurpose hall during a snowstorm, with no remedial action taken.

The report calls for strict enforcement of financial regulations, immediate recovery of misused funds, and penalization of contractors responsible for substandard work.

It recommends investigating unauthorized appointments, recovering outstanding tax amounts, strengthening procurement processes, and implementing robust internal financial controls to prevent further mismanagement.

The revelations underscore the urgent need for accountability and reform within HED KPK to ensure transparency and the efficient utilization of public funds in the higher education sector.

The report was published in the Minit Mirror, a newspaper based in Islamabad, and has been reproduced by PenPK.com.