ISLAMABAD: A recent federal audit report has uncovered large-scale financial irregularities within the Pakistan Council of Scientific and Industrial Research (PCSIR), amounting to over Rs5.83 billion in public funds during the fiscal year 2023-24.

The audit report, issued on August 8, 2025, consists of 22 detailed paragraphs, highlighting significant violations of public procurement regulations, treasury rules, and administrative procedures.

The Federal Audit Office has officially sought clarifications from PCSIR authorities, and urged immediate remedial measures, citing serious lapses in internal controls and governance.

Key Findings

Para 20 of audit shows that PCSIR carried out the procurement of silver worth Rs203.74 million without initiating open competition, violating the Public Procurement Rules 2004.

Para 6 claimed that an advance payment of Rs122.35 million was made for a 1.3MW solar power system. The action breached the Federal Treasury Rules, as the payment was made prior to delivery and without necessary approvals.

Report claimed that suppliers and manufacturers failed to provide required bank guarantees amounting to Rs12.23 million, exposing public funds to undue risk.

Para 5 of report shows that additional procurement amounting to Rs2.79 million was conducted without competitive bidding, in further violation of the Public Procurement Rules 2004.

Irregularities in student securities

Para 3 of report shows mismanagement and lack of accountability were observed in the handling of student security deposits worth Rs3.02 million, with unclear records of their use and safekeeping.

It claimed that PCSIR failed to collect Rs9.79 million in sales tax on services, contravening the Punjab Sales Tax on Services Act, 2012.

Irregular Appointments

The report has also pointed procedural violations in the appointments of Member Finance, Legal Consultant, and Scientific Officer, noting that these were made without adherence to required rules, merit criteria, or competitive recruitment processes.

The Federal Audit Office has asked PCSIR to provide clarifications and justifications for the discrepancies. The report has also called for enhanced oversight mechanisms and recommended referring the matter to relevant accountability institutions for further investigation and recovery of public funds.

Published in Dawn, August 13th, 2025