By Our Correspondent
ISLAMABAD – The Auditor General of Pakistan (AGP) has expressed serious concern over major financial irregularities in the Securities and Exchange Commission of Pakistan (SECP), including unauthorized salary hikes, illegal allowances, and withholding billions of rupees from the national exchequer.
According to the audit report, the SECP granted significant salary increases to its chairman and commissioners without mandatory approval from the Ministry of Finance (MoF). The decision, taken at the SECP Policy Board meeting on October 17, 2024, was made effective retroactively from July 1, 2023, placing an additional burden on the national treasury.
The report revealed that SECP Chairman received a compensation package of Rs415.3 million during FY2023-24 — roughly Rs3.4 million per month. Commissioners collectively received Rs358 million in the same period.
In addition, the SECP unlawfully disbursed Rs110 million in “entertainment allowances” to commissioners and staff. The AGP stressed that while the Policy Board approved these payments, it had no legal authority to do so, and MoF approval was required.
The audit further found that SECP failed to transfer nearly Rs14 billion to the Federal Consolidated Fund (FCF), violating the 2019 Public Finance Management Act, which mandates that revenues of federal entities be deposited in the Treasury Single Account. These withheld funds included Rs4.13 billion from licensing and registration, Rs1.91 billion from specialized companies, Rs591.5 million from the insurance sector, and Rs47.7 million from the securities market. Moreover, SECP retained a surplus balance of Rs6.99 billion instead of transferring it to the FCF.
Taking notice of these irregularities, Finance Minister Muhammad Aurangzeb expressed strong displeasure, stating that while the government and armed forces are working to save every rupee, regulators like SECP are misusing their positions for personal gain. He ordered an internal inquiry to be completed within one month and directed that all perks and benefits be withdrawn from the SECP chairman and commissioners until further notice.
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