KP Audit Uncovers Over Rs. 3.58 Billion in Financial Irregularities
A compliance audit of Khyber Pakhtunkhwa departments for fiscal year 2024-25 has flagged more than Rs. 3.58 billion in questionable contracts, excess payments and unauthorized spending, with only Rs. 117 million recovered so far.
An audit of provincial departments in Khyber Pakhtunkhwa has identified financial irregularities and questionable expenditures exceeding Rs. 3.58 billion, according to a report covering the first phase of the compliance audit for fiscal year 2024-25.
The findings include more than Rs. 1.205 billion in contracts approved through procedures described as questionable and non-transparent, along with over Rs. 908.1 million in excess payments on development and construction projects. The report also flagged more than Rs. 600 million in unauthorized expenditures.
Auditors further noted financial losses exceeding Rs. 378.5 million resulting from the failure to act against contractors who violated contractual agreements. These losses stem from the absence of enforcement action despite clear breaches of contract terms.
The audit examined 14 administrative departments out of 28 Principal Accounting Officers selected for scrutiny in this phase. According to the report, Rs. 117.09 million was recovered between January and December 2025, a figure confirmed by audit officials.
The scale of the irregularities places the total flagged amount well above the recoveries made during the period, suggesting that the majority of the identified financial exposure remains unresolved. The report adds to ongoing scrutiny of public spending and procurement practices in the province.
Further phases of the compliance audit for the fiscal year are expected to cover the remaining Principal Accounting Officers and departments, which could surface additional findings in the coming months.
