Audit reveals Rs883m recovery failure in Punjab Daanish Schools projects
A financial audit has revealed that Punjab Daanish Schools failed to recover Rs88.299 million in mobilisation advances paid to contractors for two construction projects, prompting the Public Accounts Committee (PAC-I) to order an inquiry and accelerate recovery efforts, the 24NewsHD TV channel reported on Sunday.
According to the audit report, contractors working on the Daanish Schools for boys and girls in Mankera, Bhakkar district, were paid mobilisation advances amounting to Rs101.895 million. However, only Rs13.596 million was recovered, leaving Rs88.299 million outstanding despite the passage of several years.
The report stated that the recovery of the advance was not ensured in accordance with the Finance Department's instructions. It also noted that the Daanish Schools Authority informed auditors that the contractors had submitted forged bank guarantees against the mobilisation advances. The matter has since been referred to the Federal Investigation Agency (FIA) for investigation.
Officials further informed the committee that the outstanding amount had been referred to the Deputy Commissioner of Lahore for recovery under the Punjab Land Revenue Act, 1967. The Education Department said reminder letters had been issued in 2022, 2023, 2024 and 2026, but no response had been received.
The department also claimed that an inquiry committee had been constituted to determine responsibility for the financial irregularities. However, the audit report noted that the inquiry had not yet been completed, no responsibility had been fixed and the outstanding amount remained unrecovered.
During the meeting, the Public Accounts Committee directed the department to complete the recovery of the remaining funds and have the recovered amount verified by the audit authorities. The committee also decided to keep audit paragraphs 31 and 32 pending until the inquiry report is submitted and the recovery is independently confirmed.
Reporter: Rao Dilshad