Audit Uncovers Irregularities in PTA’s Contributory Provident Fund
A recent audit by the Auditor General of Pakistan has uncovered serious irregularities in the management of the Pakistan Telecommunication Authority’s (PTA) Contributory Provident Fund (CPF), raising concerns about the administration of employee benefits.
The CPF, designed to provide financial security to PTA employees upon retirement, mandates that employees contribute 5% of their basic pay, which is matched by an equal contribution from the PTA, as per the PTA Employees Service Regulations (ESR) 2004. However, the audit revealed that PTA failed to distribute Rs. 70.5 million in accumulated profit from the CPF during the 2022-23 fiscal year, either to employees or the Public Account.
The audit report noted that this failure violated the PESR 2004, which requires that profits on CPF be distributed to employees upon retirement. Additionally, the audit criticized PTA’s decision to classify the CPF profit as part of its other income, calling it unjustifiable.
In defense, PTA management argued that the profit was recorded in their Financial Statements and surrendered to the Federal Consolidation Fund (FCF), but the audit team dismissed this explanation, stating that a proper mechanism must first be established.
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During a Departmental Accounts Committee (DAC) meeting on December 20, 2023, the PTA was given six months to correct the accounting process and mechanism for handling CPF profits. However, by the time the audit report was finalized, no significant progress had been made.
The Auditor General has recommended swift implementation of DAC’s directives to resolve these discrepancies and ensure transparency in managing employee funds.
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