Special Audit of Toshakhana Reveals Extensive Irregularities

The Auditor General of Pakistan’s special audit of the Toshakhana has uncovered a range of serious irregularities and unauthorised practices within the management of the government’s Toshakhana affairs.

Key Findings:

1. Unauthorized Modifications of Rules: The audit found that amendments to the Toshakhana Rules framed in 1973 were made without federal cabinet approval. Rules were altered and replaced with policies and procedures irregularly from 2001 to 2018.
2. Non-Reconciliation of Receipts: The audit revealed that the Cabinet Division had not reconciled the Rs226.987 million collected through bank challans from 2002 to 2023 with the Federal Treasury Office.
3. Lack of Physical Verification: There was a failure to conduct physical verification of Toshakhana gifts displayed in government buildings and official residences, and no certificates of such verifications were provided.
4. Irregular Auction Practices: The management failed to auction Toshakhana items regularly as required, with auctions not being conducted at least once or twice a year as stipulated.
5. Irregular Enlistment of Appraisers: Firms enlisted in 2016 to evaluate gifts lacked relevant experience, particularly in assessing high-value items like diamonds, gold, and jewelry, leading to undue favoritism.
6. Unauthorised Disposal of Gifts: The audit observed that the disposal of Toshakhana gifts was conducted without proper delegation of powers, with cases amounting to significant sums being handled irregularly by lower-ranking officials.

Specific Issues Highlighted:

• Modification of Rules: Amendments and policy replacements made without cabinet approval were deemed irregular and unauthorized. The audit recommended an inquiry and accountability for these actions.
• Reconciliation of Receipts: The Cabinet Division failed to reconcile bank challan figures with the Federal Treasury. The audit recommended verification and fixing responsibility for this lapse.
• Record Production: The Cabinet Division did not provide records of gifts received and auctioned from 1990 to 2002, citing classification. The audit recommended an inquiry and production of these records.
• Physical Verification: The audit found that physical verification of gifts was not conducted as required. It recommended immediate verification and accountability for the delays.
• Auction Practices: The management’s failure to conduct timely auctions was flagged, and an inquiry was recommended to address this irregularity.
• Appraiser Enlistment: The selection of inexperienced firms for gift evaluation was criticized, with a recommendation for a fact-finding inquiry and accountability.
• Disposal of Gifts: Unauthorized disposal of gifts by officials without delegated powers was noted, with the audit recommending an inquiry to fix responsibility for these irregularities.

Conclusion: The special audit report calls for comprehensive inquiries into the management of Toshakhana, accountability for unauthorized actions, and immediate rectification of the identified issues to ensure transparency and proper governance.

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