Alleged Financial Misconduct Highlighted in HEC and Affiliated Universities' Operations, Amounting to Approximately PKR 5.29 Billion, According to AGP
Financial Irregularities Plague Higher Education Commission in Pakistan
The Higher Education Commission (HEC) of Pakistan faced significant financial irregularities amounting to Rs5.29 billion in the fiscal year 2023-24, as reported by the Auditor General of Pakistan.
One of the most substantial violations was the retention of Rs4.852 billion by the HEC in its own income account, rather than depositing it into the Federal Government’s Treasury Single Account (TSA). This action contravened Section 37(1) of the Public Finance Management Act, 2019, which requires all autonomous public bodies to route revenues through the TSA. Despite a formal notification from the Finance Division in January 2023, the HEC continued managing and utilising funds independently.
The collections during FY 2023-24 included various revenues such as Rs1.13 billion from attestation and equivalence fees, Rs2.43 billion from Pakistan Education and Research Network (PERN) recoveries, funds from the Digital Library project, Education Testing Council, and interest income.
Other irregularities involved unauthorized disbursements and procurement-related violations, contributing to financial mismanagement. For instance, the HEC spent Rs35.076 million on IT equipment for the "Smart Universities" project without adhering to open competitive bidding procedures. Critical documentation, such as bid evaluations and advertisement records, was missing in the IT equipment procurement process, raising concerns about non-transparency and possible favouritism.
The audit also revealed unauthorised disbursements totaling Rs359.617 million made to public sector universities under various development projects, without approval from the Planning Commission or its Development Working Party (DDWP). Additionally, the HEC incurred Rs4.055 million in unauthorized foreign travel expenses without seeking mandatory approvals from the competent authority.
Another issue that surfaced was the HEC's failure to recover Rs7.569 million in liquidated damages from a contractor who delayed the construction of the National Academy of Higher Education (NAHE).
The overall findings highlight serious non-compliance with public finance management laws, especially the TSA regime, and weaknesses in financial controls and oversight in HEC’s operations during the fiscal year 2023–24. The governance and oversight mechanisms within Pakistan's higher education sector are called into question by these audit findings.
[1] Sources: Auditor General's Report on Accounts of the Government of Pakistan for the year ended 30th June 2024 (Higher Education Commission)
- The Higher Education Commission, in contravention of the Public Finance Management Act, 2019, held Rs4.852 billion from its own income account and failed to deposit it into the Federal Government’s Treasury Single Account (TSA), raising questions about the index of transparency and accountability in finance-related matters.
- Despite a formal notification from the Finance Division in January 2023, the HEC continued to finance and manage its funds independently, violating the set regulations and valuation standards.
- Amongst the revenues collected by the HEC in the fiscal year 2023-24 were attestation and equivalence fees, funds from the Digital Library project, Education Testing Council, and interest income, but the commission also faced challenges in finance management and education-and-self-development initiatives due to unauthorized disbursements and procurement-related infractions.
- The audit findings reveal a need for improvements in the business operations of the Higher Education Commission, as there were critical lapses in adhering to financial management laws, proper procurement procedures, and oversight mechanisms, leading to financial irregularities that surpassed Rs5.29 billion.
