Key Takeaways
- An audit has uncovered Rs. 18.46 billion in irregularities at KPEZDMC.
- The company failed to recover Rs. 2.08 billion in lease payments.
- Poor management and financial irregularities are blamed for the losses.
An audit has revealed significant financial irregularities and losses amounting to Rs. 18.46 billion at the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC).
According to the Auditor General of Pakistan’s report, the company’s poor planning, weak management, and financial irregularities have contributed to these substantial losses.
The audit highlighted that the company failed to recover Rs. 2.08 billion in lease payments from industrial owners for allotted land, despite court orders being in place.
Additionally, the company’s failure to renew agreements for commercial land resulted in a loss of Rs. 629.8 million to the public exchequer.
The audit also found that the company did not get land vacated in Buner, Mohmand, and Jalozai, resulting in a loss of Rs. 1.08 billion.
Another Rs. 174.1 million was lost due to the illegal allotment of commercial land for industrial use.
In Haripur, plots 185, 186, 187, and 190, covering 10 acres, were allotted to Al-Hadeed Engineering, but the payment was not collected, causing a loss of Rs. 497.8 million.
The report also raised concerns about the company’s governance, land allotments, recovery of dues, and financial affairs.
According to the Auditor General, the company’s contingent liabilities have reached Rs. 14 billion, posing a serious risk to the continuity of its business operations.
The findings come days after another audit revealed Rs. 16.94 billion in irregularities in the KP Minerals Department, highlighting ongoing issues in the province’s economic management.
