LAHORE: The Public Accounts Committee-III (PAC-III) on Thursday expressed serious concern over massive financial irregularities in municipal committees (MCs) of the Gujranwala region, including unauthorised expenditure, irregular spending and weak audit oversight, involving hundreds of millions of rupees.

The meeting, chaired by Ahmad Iqbal Chaudhary, examined 117 audit paras amounting to Rs276.047m related to various MCs in the Gujranwala region.

During the scrutiny, the committee reviewed audit observations highlighting unauthorised expenditure of Rs662.40m, irregular expenditure of Rs138.941m, non-reconciliation of TTIP amounting to Rs100.295m and less recovery of conversion fees worth Rs67.988m.

PAC-III expressed strong displeasure over the performance of the Special Departmental Accounts Committee (SDAC), observing that it had failed to discharge its responsibilities effectively and efficiently.

The committee directed SDAC to significantly improve its functioning and overall performance.

To ensure greater accountability and transparency, PAC-III instructed SDAC to maintain a complete paper trail of all inquiries and investigations initiated by it and regularly share progress reports with PAC members.

The committee further recommended that either a PAC member or a BS-17 or above officer should attend SDAC meetings as an observer to strengthen oversight of departmental proceedings.

In another important directive, PAC-III ordered the preparation of a standardised undertaking checklist to be signed by SDAC members, for every audit para recommended for settlement. These signed undertakings would be submitted to PAC-III as part of the formal settlement process.

The committee expressed satisfaction that the administrative department had implemented its earlier recommendation for developing a comprehensive mechanism, in coordination with revenue authorities, for the reconciliation of TTIP accounts.

PAC-III also directed the local government department to establish an internal audit wing on the pattern of similar units functioning in the health and education departments. The committee said the move would help strengthen internal controls, improve financial oversight and prevent future irregularities within the department.

Published in Dawn, May 22nd, 2026