pac meeting reveals
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PAC meeting reveals Rs1.06 billion embezzlement

ByJustpaste.in

 

Islamabad: A meeting of the Public Accounts Committee (PAC) revealed a major financial irregularity involving the Hyderabad Electric Supply Company (HESCO), where more than Rs1.06 billion was allegedly embezzled through the payment of salaries to ghost employees and retired staff.

The disclosure was made during the committee’s review of an audit report highlighting serious financial mismanagement within the power distribution company. According to the audit findings, salaries continued to be issued in the names of non-existent employees as well as individuals who had already retired from service, resulting in a massive loss to the national exchequer.

The audit report stated that the alleged embezzlement was carried out through the collusion of officials from HESCO’s Drawing and Disbursing Officer (DDO) office, Executive Engineer (XEN) office, and Chief Financial Officer (CFO) office. The report indicated that weaknesses in internal financial controls and payroll monitoring allowed the irregular payments to continue for an extended period without detection.

During the PAC meeting, members expressed serious concern over the scale of the fraud and questioned how such a significant amount of public money could be misappropriated without timely intervention. The committee emphasized the need for stronger financial oversight, transparent payroll management, and strict accountability to prevent similar incidents in the future.

Responding to the audit observations, the Chief Executive Officer (CEO) of HESCO informed the committee that disciplinary action had already been taken against officials found responsible for the irregularities. According to the CEO, four employees have been dismissed from service, including three accounts officers and one finance officer. He stated that the company has adopted a zero-tolerance policy toward corruption and financial misconduct and is cooperating fully with the relevant authorities.

Officials from the Federal Investigation Agency (FIA) also briefed the committee on the progress of the criminal investigation. They informed lawmakers that five criminal cases had been registered in connection with the fraud. According to the FIA, more than 130 individuals were allegedly involved in the scam, either directly or indirectly, making it one of the largest payroll fraud cases uncovered in a public sector utility.

Despite the registration of multiple cases, the FIA reported that only Rs130 million has been recovered so far, a small portion of the total amount allegedly embezzled. Investigators said efforts are continuing to trace the remaining funds, identify all those responsible, and recover the outstanding amount through legal proceedings.

The PAC directed the relevant authorities to expedite the investigation and ensure that all individuals involved are brought to justice, regardless of their position or influence. Committee members stressed that those responsible for the misuse of public funds must be held accountable to restore public confidence in government institutions.

The revelations have once again highlighted the need for comprehensive reforms in payroll management, financial auditing, and internal accountability mechanisms within state-owned organizations. The committee reiterated that transparent governance and effective oversight are essential to preventing corruption and safeguarding public resources from financial abuse.

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