Pakistan : Punjab holds over Rs. 20 billion of farmers in sugarcane development funds
A fiscal audit has uncovered that Punjab’s Finance Department illegally withheld Rs. 20.33 billion from the Sugarcane Development Cess, meant for farmers. Violating 1964 rules, funds were not released to districts. Unauthorized disbursements in Faisalabad and Vehari further compound concerns. The report urges immediate fund transfer, investigations, and disciplinary action.
Lahore: Even as Punjab finalizes its upcoming budget draft, a major financial controversy has surfaced involving the illegal withholding of over Rs. 20 billion meant for sugarcane farmers. An audit report by the Auditor General for the fiscal year 2024–25 has divulged that the Finance Department of Punjab withheld Rs. 20.33 billion allocated under the Sugarcane Development Cess.
According to the report, these funds, collected specifically for sugarcane development, were not released to the respective District Coordination Officers (DCOs) as required under the Punjab Sugarcane Development Cess Rules of 1964. The funds were intended to be utilized at the district level for agricultural improvement projects, directly benefitting sugarcane growers.
The audit report accentuated that the withholding of these funds is not only a gross violation of financial rules but also amounts to illegal appropriation of money intended for farmer welfare. The further scrutiny disclosed that the district accounts officers in Faisalabad and Vehari disbursed Rs. 55.2 million and Rs, 28.6 million respectively, without the prior authorization from the Finance Department. These payments have been deemed unauthorized and in violation of financial protocol.
In addition, the audit observed that no budgetary allocation had been made for the mandatory 2% collection charges on cess revenue—another violation of standard accounting procedures.
The report strongly recommends that the withheld Rs. 20 billion be immediately transferred to the relevant district development accounts to support projects for sugarcane growers. It also calls for a full investigation into the unauthorized disbursements made in Faisalabad and Vehari, with recovery of funds and disciplinary action against those responsible.
This report has raised portentous questions about governance and transparency in the handling of farmer development funds at a time when agricultural communities across Punjab are already struggling with delayed payments and limited government support.
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Source : Minute Mirror
