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PAC Orders Probe into Ghost Employees in DISCOs, Directs Digital Payroll System

Islamabad: The Public Accounts Committee (PAC) of Parliament has directed authorities to conduct a comprehensive verification of employees in all power distribution companies (DISCOs) and introduce a fully digital payroll and salary payment system to eliminate ghost employees and financial irregularities.

The committee, chaired by Shahida Akhtar Ali, reviewed audit observations relating to the Power Division. The meeting was attended by Secretary Power Division, the Auditor General, chief executives of various DISCOs and other senior officials.

Audit officials informed the committee that electricity consumers had been refunded more than Rs47.81 billion following cases of incorrect meter readings and overbilling. The refunds were made to 278,649 consumers, with Lahore Electric Supply Company (LESCO) accounting for Rs45.5 billion of the total amount.

The audit observed that overbilling and detection charges had been revised after complaints, while ineffective accountability mechanisms had allowed officials responsible for the irregularities to avoid disciplinary action. Committee members questioned whether consumers who had not lodged complaints had also received refunds.

Secretary Power Division informed the committee that Pakistan was moving towards large-scale installation of smart meters, adding that negotiations were under way with the World Bank and other stakeholders, while investment had also been sought from Trkiye. He said 16 million smart meters would be installed during the current year, all new electricity connections would receive smart meters, and faulty meters would also be replaced with smart devices. He further informed the committee that three DISCOs would soon be privatized.

During discussion on audit findings relating to Hyderabad Electric Supply Company (HESCO), audit officials disclosed that more than Rs1.06 billion had been paid to ghost employees in salaries and allowances, while the FIA was investigating alleged corruption worth Rs996.2 million.

FIA officials informed the committee that five FIRs had been registered against 151 accused, of whom 14 had been arrested while the remaining suspects were on bail. They added that recoveries amounting to Rs130 million had so far been made.

Expressing dissatisfaction over the slow pace of recoveries and accountability, the PAC directed verification of employees across all DISCOs and immediate implementation of a digital salary payment mechanism to prevent similar fraud in future.

The committee also reviewed audit observations regarding GENCO-I, where alleged irregularities worth Rs10 billion were reported in the procurement of 200,000 metric tons of coal for the 660MW Jamshoro Power Plant. Audit officials said procurement rules had been violated, resulting in an additional financial burden of Rs1.4 billion on the national exchequer. The committee referred the matter back to the Departmental Accounts Committee (DAC) for further examination.