Audit Reveals Overpayment of Rs. 3.27 Million to Contractor Due to Non-Deduction of Taxes in KPK Sports Directorate

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In a recent audit of the accounts record for the financial year 2022-23, it was discovered that the Director General Sports of Khyber Pakhtunkhwa failed to deduct compulsory taxes from payments made to a contractor for event management services. A total of Rs. 29.725 million was paid to the contractor as part of the “Promotion and Sustainability of Sports Activities in Khyber Pakhtunkhwa” project. However, the necessary income tax and sales tax were not deducted, resulting in an overpayment of Rs. 3,269,750.

The lapse was attributed to weak internal controls within the department. Although the issue was raised in December 2023, and assurances were made regarding recovery, the department has yet to hold a DAC (Departmental Accounts Committee) meeting to address the matter. The audit recommends immediate recovery of the overpaid amount.

#KPKSports #AuditReport #Overpayment #TaxDeduction #Accountability

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