LESCO audit exposes Rs38.62b in financial irregularities

LAHORE: The Lahore Electric Supply Company (LESCO) audit for the fiscal year 2023-2024 uncovered huge financial irregularities amounting to Rs38.62 billion.

The audit examined the company’s operations and financial practices. It found several areas of concern, including over-billing, construction project discrepancies, and revenue losses.

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The audit report reveals that LESCO collected Rs10.95 billion from consumers due to over-billing during the year. The substantial overcharge has been flagged as a major issue, raising concerns about the accuracy of billing practices and the impact on consumers.

The report also detailed financial irregularities totaling Rs36.8 billion in several construction projects. The discrepancies are attributed to mismanagement and lack of proper oversight. This has raised questions about the integrity of LESCO’s project execution and financial controls.

The audit noted that LESCO incurred losses exceeding Rs8 billion due to line inefficiencies and losses across multiple feeders.

The report found that a refund of more than Rs13 billion was issued due to incorrect meter readings within the LESCO Eastern Circle.

In terms of revenue collection, the audit indicates that over Rs4 billion remained uncollected from defaulting consumers. Rs340 million were reportedly recovered through unauthorised surcharges related to the Neelum Jhelum project.

The audit also found that Rs660 million in late payment charges were waived for government departments.

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A LESCO spokesperson responded to the audit findings by stating that the company conducts audits in accordance with legal requirements. He said that the electric provider was “committed” to addressing any irregularities identified.

The spokesperson assured that corrective actions were being taken to rectify the issues detailed in the report.