By Nazir Siyal / DNA
KARACHI: In a high-level meeting held on Tuesday, the Public Accounts Committee (PAC) of Sindh, chaired by senior politician Nisar Khuhro, exposed alarming financial irregularities involving eight non-governmental organizations (NGOs) under the provincial government’s Community Development Program. The PAC has ordered the blacklisting and license cancellation of these NGOs for failing to provide required audit records, invoices, and proof of expenditure against over Rs. 800 million in public funds.
The named NGOs include HANDS, SRSO (Sindh Rural Support Organization), IBA Karachi, HELP (Health Education Literacy Program), Engro Foundation, Women & Children Medical Care Trust, and District Development Association Tharparkar. These organizations had received funds for various health, skill development, and education projects across Sindh.
Despite receiving three formal notices, these NGOs failed to submit any verifiable financial documents. The PAC has directed the Sindh Social Welfare Department to take immediate action and revoke their registrations and licenses.
According to the audit presented by the Planning and Development Department, funding distribution was as follows, including HANDS: Rs. 18.5 million (health projects), SRSO: Rs. 25.4 million (skill training), HELP: Rs. 22.7 million (health), Engro Foundation: Rs. 935,000 (education), IBA Karachi: Rs. 1.18 million (skill education), Women & Children Medical Care Trust: Rs. 10.2 million (health) and District Development Association Tharparkar: Rs. 22.7 million (skill development)
Further compounding the controversy, PAC uncovered that SRSO, which received billions in poverty reduction funds, was allegedly charging 8–10% interest on interest-free microloans meant for widows under the Union Council-Based Poverty Reduction Program in Kandhkot-Kashmore, Jacobabad, and Shikarpur.
While SRSO’s CEO initially admitted in writing to collecting interest, he later claimed that the mention of interest was a “clerical error”j in meeting minutes. He added that the funds were disbursed through village organizations, not directly by SRSO.
PAC has ordered a fact-finding inquiry to verify the misuse of funds and investigate whether widows were illegally charged interest on government-backed loans.
PAC was further alarmed to learn that SRSO has not returned Rs. 380 million in interest earnings from a Rs. 9.67 billion grant issued under the People’s Poverty Reduction Program for projects in six districts, Khairpur, Sanghar, Mirpurkhas, Badin, Thatta, and Umerkot.
The project officially ended in June 2025, yet the funds remain unreturned.
SRSO claimed that the funds would be returned once the Planning Department sends a formal letter. PAC has now ordered a comprehensive investigation into SRSO’s financial practices, fund usage, and delay in repayment.
