A meeting of the Public Accounts Committee (PAC) has uncovered an alleged Rs1.06 billion embezzlement at the Hyderabad Electric Supply Company (HESCO) involving salary payments to ghost employees and retired staff.
According to an audit report reviewed by the committee, salaries were continuously paid to non-existent employees and individuals who had already retired, resulting in significant financial losses to the national exchequer. The report alleged that officials from HESCO’s Drawing and Disbursing Officer (DDO) office, Executive Engineer (XEN) office, and Chief Financial Officer (CFO) office colluded in the fraud.
PAC members expressed serious concern over the scale of the financial irregularity and called for stronger internal controls, transparent payroll systems, and greater accountability to prevent similar incidents in public sector organizations.
During the meeting, the HESCO Chief Executive Officer (CEO) informed the committee that disciplinary action had been taken against those responsible. Four officials, including three accounts officers and one finance officer, have been dismissed from service.
The Federal Investigation Agency (FIA) also briefed the committee, revealing that five criminal cases have been registered in connection with the scam. Investigators said more than 130 individuals were allegedly involved, making it one of the largest payroll fraud cases uncovered in a public sector utility.
So far, the FIA has recovered Rs130 million, while efforts continue to trace the remaining funds and bring all those involved to justice. The PAC directed authorities to speed up the investigation and ensure accountability regardless of rank or position.
The case has renewed calls for comprehensive reforms in payroll management, financial auditing, and governance across Pakistan’s state-owned enterprises to safeguard public resources from corruption.
