BSIP under scrutiny over Rs100 Billion funds misuse scandal

ISLAMABAD: Pakistan’s leading cash transfer intervention, the Benazir Income Support Program (BISP), is engulfed in a huge scandal involving the misuse of funds worth over Rs100 billion.

A recent audit of finances in the year 2023-24 has disclosed shocking misappropriation, amounting to Rs141 billion. A report summarising the audit found numerous incidences of mismanagement, including unauthorized payments, illegal withdrawals, and misapplication of funds meant for educational scholarships.

When considering the low level of financial inclusion in the country, BISP was also paying tens of thousands of people without valid CNICs (identity cards).

The total number of bogus beneficiaries was spent to surpass over 30 lakh with total payments amounting to Rs116.95 billion. The report also found a concerning trend of funds being disbursed to individuals who were not entitled to them.

For example, Rs4 billion was paid to tax filers, Rs60 million was paid to families of public servants, there was over Rs11.5 million in school scholarships paid to unauthorized students, Rs13.8 million was paid to 50 lakh students who were absent in class but marked present on the roll.

There was also Rs454.7 million withdrawn from cash grants reserved for districts and Rs115 million deducted from BISP beneficiaries’ accounts. These deductions were made without attribution.

Other financial misappropriation found in the report involved funds in the amounts not missed under household survey funds, Rs77.2 million, and a further Rs63.7 million paid in deputation allowances for non-qualifying employees. The findings raise serious concerns regarding accountability and oversight.