An audit report of the Auditor General of Pakistan (AGP) has unveiled illegal utilisation and lack of separate account for more than Rs 5 billion deducted from the salaries of Pakistan Railways’ employees in terms of general provident fund during the financial year 2011-2012.
The provident fund is established for the welfare and assistance of the railways employees. This amount, the audit report added, may be invested in any interest bearing term deposit account keeping in view its security and profitability.
The Pakistan railways was deducting general provident fund on a regular basis from the salaries of its employees. During the audit, it revealed that Rs 5.4 billion were not kept in any separate public account. The amount was utilised to control the financial hardships that the Pakistan railways had been suffering for the last many years. As a result, the PR was unable to pay the provident fund as and when demanded by the employees.
The Pakistan Railways authorities said in the audit report that it was a matter of policy and a separate account would be opened after getting approval from the competent authority.
The AGP termed the utilisation of the said money for operational purposes as a sheer violation of the financial discipline and rules and regulations, and proposed to stop the irregularities in the use of the provident fund.
