PAC Exposes Irregularities Worth Crores in PHED Gwadar, Orders Three Executive Engineers to Be Placed on OSD

QUETTA – The Public Accounts Committee (PAC) of the Balochistan Assembly has expressed strong displeasure over massive financial irregularities in the Public Health Engineering Department (PHED) Gwadar, directing that three executive engineers be placed on OSD (Officer on Special Duty) for their failure to comply with committee directives and provide required records for over two and a half years.

The PAC meeting, chaired by Committee Chairman Asghar Ali Tareen, was attended by members Obaidullah Gorgij, Fazal Qadir Mandokhail, Rahmat Saleh Baloch, and Safia Fazal. Opposition Leader Younis Aziz Zehri also participated on a special invitation. Officials from relevant departments, including Provincial Assembly Secretary Tahir Shah Kakar, Director General Audit Balochistan Shuja Ali, Special Secretary PAC Siraj Lehri, Additional Secretary Law Saeed Iqbal, and Additional Secretary Finance, were also present.

The committee reviewed in detail the special audit report concerning POL (petrol, oil, and lubricants) and repair/maintenance expenditures of Executive Engineer PHED Division Gwadar for the fiscal years 2018-19 to 2020-21, along with the audit year 2022-23 and the PAC directives issued on May 29, 2025.

The committee engaged in extensive discussion on the matter of unauthorized accrued liabilities amounting to Rs 590.813 million identified in the report. According to the audit, these liabilities were incurred by the Executive Engineer PHED Gwadar under POL charges and repair/maintenance of water supply schemes without prior approval from the competent forum.

The committee was informed that the executive engineers posted during the relevant period (2018-2021) were not present at the meeting. The committee decided that these officers would be given a full opportunity to present their stance in the next meeting. They were directed to submit all necessary records and documentary evidence to the Audit Department and PAC before the next hearing. If officers successfully prove their position through documentation, the relevant audit paras would be considered for closure; otherwise, recovery proceedings would be initiated against the responsible officers.

During the meeting, the committee also directed that the three concerned executive engineers be placed on OSD for failing to comply with PAC orders issued one and a half years ago, misusing public funds, demonstrating irresponsibility, and repeatedly failing to provide records related to Rs 590.813 million despite multiple opportunities. Action under rules was also ordered against them.

On this occasion, Obaidullah Gorgij stated that the PAC should not be forced to register FIRs against these executive engineers, and it was decided that they would be produced before the PAC through Deputy Commissioners. Safia Fazal remarked that since the department had failed to implement PAC orders for a year and a half, giving them another opportunity was pointless. Rahmat Saleh Baloch noted that the PHED department does not consider itself accountable, which is deeply concerning.

The committee further clarified that if the matter is found to be of a serious nature after investigation, it could be referred to the National Accountability Bureau (NAB), Chief Minister’s Inspection Team (CMIT), or Anti-Corruption Establishment Balochistan.

Committee members expressed strong displeasure over the lack of effective progress on the directives issued on May 29, 2025. Member Fazal Qadir Mandokhail remarked that despite 16 months having passed, the department continues to seek more time, while committee members set aside their other important matters to sit on this forum in the public interest. He stated that if any officer is deliberately avoiding appearing before the committee, the department should clearly inform them so the committee can proceed according to the law.

According to the audit report, the Directorate General Audit Balochistan conducted a special audit of the accounts of Executive Engineer PHED Gwadar for POL and repair/maintenance expenditures during 2018-2021 in November 2022. The audit aimed to examine compliance with government laws, rules and regulations, transparency in tenders and bidding processes, adherence to financial principles during contracts, and proper utilization of government funds in accordance with rules. The audit was conducted in accordance with INTOSAI Auditing Standards.

The special audit report identified several major irregularities, including:

Failure to record accrued liabilities of Rs 590.813 million in accounts

Non-deduction of income tax amounting to Rs 23.967 million

Irregular expenditures of Rs 492.363 million without calling tenders

Questionable/unjustified expenditures of Rs 38.426 million on operation and maintenance of water supply schemes during drought

Suspicious expenditures of Rs 492.363 million due to lack of proper maintenance of POL and lubricants stock accounts and key records

The report further noted weak financial management at the divisional office, failure to properly maintain necessary records and logbooks, incomplete stock registers, and liabilities incurred without obtaining necessary approvals from competent authorities. Financial irregularities emerged due to non-compliance with government rules in expenditures and procurement processes.

The committee also expressed concern that some concerned officers not only failed to provide records but also did not appear before the PAC, a key constitutional forum.

The committee directed the department to submit its position, relevant records, and explanations on the audit paras within 15 days.

At the conclusion of the meeting, committee members unanimously decided to issue a formal communication to the Secretary of the relevant department, directing them to ensure the presence of the concerned executive engineers and other responsible officers at the next meeting, and to place all necessary records before the committee so matters could be brought to a logical conclusion under rules and regulations. Otherwise, strict decisions would be taken against the department and a report would be presented in the assembly.