Employees Old-Age Benefits

Institution (EOBI)

From Audit’s
Perspective

M/O OVERSEAS PAKISTANIS & HUMAN RESOURCE DEVELOPMENT

1 1
Introduction
oThe EOBI provides compulsory social insurance
to persons in Industrial & Commercial
Establishments employing 10 or more persons

o EOBI’s benefits are subsistence monthly pension

of Rs.10,000 per month [minimum rate] while the
maximum rate could be higher

o Over 400,000 Old-age pensioners drawing

monthly pensions currently;

2
Main Functions of EOBI

Funds
Investment

Contribution
Collection EOBI Pension
Disbursement

Real Estate

3
Main Receipts

Contribution
Collection

Investment Investment
in Fixed Receipts in Stock
Equities Market

Real
Estate
4
Why EOBI is Important

• A large scale organization

• Scope of work across the country / Country wide operations
• Huge Financial Assets
• 39 number of Regional Offices
• …..Registered Industrial Units
• Over 400,000 No. of Pensioners
• Regular Annual Audit
• Special Audits have also been conducted
• Highest ratio of printed paras during last three F.Y and even one
decade
• Most paras discussed in PACs during last three F.Y
• Most paras referred to FIA or NAB
5
Regional Offices

• Total 39 Regional Offices across the country

11 R.Os Sindh

EOBI Operations 02 R.Os Balochistan

21 R.Os Punjab

02 R.Os ICT & NA

Khyber
03 R.Os
Pakhtunkhwa

6
Public Accounts Committee’s
Meetings
• Following meetings of PAC were held during the last three Financial
Years:

Total
Total Settled Pended
F.Y Meeting Departments
Paras Paras Paras
s
EOBI, OPF,
2020-
04 26 02 24 WWF, OEC, &
21 Sindh WWB
EOBI, OPF,
WWF, Punjab
2021-
04 49 16 33 WWB, KP
22 WWB, & Sindh
WWB
EOBI, OPF,
2022-
03 39 12 27 WWF, PWWB,
23 BWWB 7
Public Accounts Committee’s
Meetings during 2020-21

PAC Date Pended Settled Total Paras

09.07.2020 16 0 16

20.01.2021 6 0 6

21.08.2020 2 0 2

29.09.2020 0 2 2

Total Paras 24 2 26
8
Public Accounts Committee’s
Meetings during 2021-22

PAC Date Pended Settled Total Paras

09.02.2022 13 4 17

15.09.2021 5 5 10

18.01.2022 15 15

27.01.2022 7 7

Total Paras 33 16 49
9
Public Accounts Committee’s
Meetings during 2022-23

PAC Date Pended Settled Total Paras

15.11.2022 4 2 6

28.04.2023 14 1 15

21.06.2023 9 9 18

Grand Total 27 12 39

10
EOBI Paras in PAC Meetings
during last three Financial
Years
• During last 03 financial years, 08 out of 11 PAC
meetings, EOBI’s paras were discussed. This is
almost 75% of total meetings in this period.
• Out of 84 pended paras, 66 paras related to EOBI
remained pending during PAC meetings. This
becomes 78% of total pending paras in this period.
• Whereas, 07 paras were settled by the PAC out of
total 30 settled paras of all departments.

11
EOBI Paras in PAC Meetings
during last three Financial
Years

Total Total Settled Pended

F.Y
Meetings Paras Paras Paras

2020-21 03 17 0 17

2021-22 03 35 04 31

2022-23 02 21 03 18
Total 08 73 07 66
12
 COMPARATIVE ANALYSIS OF EOBI
WITH OTHER DEPARTMENTS (last
03 F.Y)
Departme Total Paras Settleme
Settled Pended
nt Meetings discussed nt Ratio
EOBI 08 73 07 66 0.95%
OPF 06 20 13 07 65%
WWF 04 09 05 04 56%
PWWB 03 04 02 02 50%
Sindh
02 03 01 02 33%
WWB
OEC 01 02 02 0 100%
BWWB 01 02 0 02 0%
KP WWB 01 01 0 01 0%
G.Total - 114 30 84 -
13

EOBI
Audit Reports Since 2011-12 –
M/o OP&HRD
S# Audit Report Total Paras Settled Pended EOBI Paras Settled Pended
1 2011-12 53 25 28 10 7 3
2 2012-13 57 23 34 7 2 5
3 2013-14 32 14 18 0 0 0
4 2014-15 36 3 33 13 1 12
5 2015-16 55 19 36 20 6 14
6 2016-17 83 24 59 12 3 9
7 2017-18 30 16 14 4 1 3
8 2018-19 44 2 42 34 0 34
9 2019-20 28 12 16 0 0 0
10 2020-21 21 0 21 9 0 9
11 2021-22 43 0 43 16 0 16
12 2022-23 25 0 25 7 0 7
Total 507 138 369 132 20 112
14
Audit Report 2020-21 - EOBI
S# Audit Para Description

1 4.5.1 Non-compliance of the statutory provision regarding

preparation of Annual Accounts
2 4.5.2 Unjustified payment of pension upon less than
contributory qualifying service – Rs. 75.918 billion
3 4.5.3 Non-recovery of arrears of contribution from defaulting
employers– Rs. 32.163 billion
4 4.5.4 Irregular drawal of EOBI pension by serving and retired
government employees - Rs. 8.032 billion
4.5.5 Unauthorized payment of various allowances - Rs.982.39
5
million
4.5.6 Unauthorized payment of Special Allowance – Rs. 200.613
6
million
7 4.5.7 Non recovery of loan/ dues/ assets from terminated
employees - Rs. 115.178 million
8 4.5.8 Payment of gratuity in addition to Contributory Provident
Fund (CPF) – Rs. 20.129 million
4.5.9 Registration of Government officers as insured persons15
9
 Audit Report 2021-22 - EOBI
S# Audit Para Description
1 4.4 Loss to EOBI due to late de-credit of funds by bank - Rs. 870.734 million Amount in AIR (287.196)
2 4.5 Unjustified process of pension cases without verification of PR-02 Forms - Rs. 551.856 million
4.4.1 Non-recovery of arrears of contribution from defaulters employers - Rs. 5669.719 million Amount in AIR
3
(5194.624)
4.4.2 Loss to EOBI due to non-updation of Facilitation System of payment of contributions made by employers
4
through Auto Vouchers - Rs. 1513.517 million
4.4.3 Non-credit of contributions by Bank Alfalah from EOBI MCA to EOBI MIA on daily basis - Rs. 1490.527
5
million Amount in AIR (1033.530)
4.4.6 Irregular award of pension to pensioners without their entry / registration found in the IP database - Rs.
6
302.268 million
4.4.7 Unjustified amount of employers' contribution found entered in EOBI database but not found in Main
7
contribution Account's Bank Statement - Rs. 77.856 million
8 4.8.8 Recoverable payment of Special Allowance - Rs. 55.459 millnion Amount in AIR (1097.108)
4.4.9 Payment of Gratuity in addition to Contributory Provident Fund (CPF) - 7.355 million Amount in AIR
9
(16.700)
10 4.4.10 Illegal provision of pension from EOBI to government pensioners - Rs. 8.976 million
4.4.11 Unjustified award of pension to the employees of different establishments more than their total Registered
11
Insured Persons to-date as per IP's database - Rs. 8.589 million Amount in AIR (No amount )
12 4.4.12 Illegal registration of Insured Persons (Ips) who are under the employment of State - Rs. 4.66 million
4.4.13 Recoverable amount from Chairman EOBI on account of Club Membership Fee - Rs. 3.15 million Amount in
13
AIR (3.200)
14 4.4.14 Irregular award of Pension against dummy Employer's ID - Ra. 1.886 million
15 4.4.15 Difference due to non-reconciliation of contribution deposited by employers
16 4.4.16 Non-Compliance of Statutory Provision regarding preparation of Annual Accounts 16
Audit Report 2022-23 - EOBI

S
Audit Para Description
#

1 4.4.2 Non-recovery of arrears of contribution from defaulter employeers-

Rs.2,339.504 million
2 4.4.3 Loss to EOBI Pension fund due to deduction of Withholding Tax on
profit-Rs.96.30 million
3 4.4.4 Irregular provision of more than one type of benefits at the same time
against same IP EOBI number-Rs.87.363 million
4 4.4.5 Difference in de-credited amount between MIS and Bank Statements
of MDA/ less refund of de-credit amount-Rs. 55.95 million
5 4.4.6 Irregular excess payment of House Rent allowances-Rs.18.480 million

6 4.4.7 Irregular payment of Old Age Pension and Survivor Pension during
same period-Rs. 5.66 million
7 4.4.8 Non reconciliation of 31 accounts
17
List of Paras referred to FIA
• So far total 47 paras have been subjudice and pending either FIA,
NAB or under court. List may be seen here.
• During last three F.Y, 33 number of paras have been referred to FIA by
the PAC. Details are as under:
Para
S# Para Description Status
#
1 Imprudent Investment in DHA, Islamabad resulting in
8.1.4.2 blockage of Funds of Rs. 1440 milloin and Loss of FIA
Revenue of Rs. 721.336 million
2 Loss due to purchase of disputed property - Rs. 108.336
8.1.4.3 FIA
million
3 Non-Recovery of Remaining amount of embezzled fibs
135 NAB
due to lack of pursuance-Rs.206.125 million
4 Irregular award of contract at higher rates Rs. 2,892
17.1.4.1 FIA
million
5 4.2.1 Irregular award of contract-Rs.2,748.00 million FIA
6 Non-recovery of liquidated damges due to delay in
4.5.2 NAB
completion projects-Rs.920.02 million
7 Excess payment of mobilization advance-Rs.872.497 18
4.1.1. NAB
million.
 Continued…..
S# Para # Para Description Status
9 Over payment to M/s Mughal Pakistan for
4.1.5
construction of Serena(Hotel)-Rs.524.563 million.
10 Loss due to poor contract management-Rs.438.490
4.3.3
million.
11 Loss due to irregular award of extension of time to
4.3.1
the contractors-Rs.676.260 million.
12 Undue favour extended to the contractors by
4.1.4
reduction in retention Money-Rs.611.287 million.
13 Irregular award of contract to M/s builders Associates-
4.2.3
Rs.600.00 million.
14 Loss due to non-completion of commercial complex
4.3.2
Johar Town, Lahore-Rs.454.818 million.
15 Unauthorized grant of mobilization advance to M/s
4.1.6
builder associates-Rs.378.00 million.
16 Loss due to irregular award of contract-Rs.47.237
4.2.5
million.
17 irregular purchase of property in DHA, islamabad -
4.2.1
Rs.15,743.70 million
18 irregular purchase of property in DHA phase-1, sector-
4.2.2
F, Rawalpindi-Rs.6,825 million
19 irregular purchase of property in district malir,
4.2.3
Karachi-Rs.2,023 million
20 irregular purchase of property in Mauza Sehipal,
4.2.4 19
Lahore Cantt-Rs. 1,437.00 million
 Continued…..
S# Para # Para Description Status
21 irregular purchase of 226 commercial plots in river
4.2.5 edge housing schem, park view villas, lahore-Rs.1,300
million.
22 irregular purchase properties in park view villas lahore-
4.2.6
Rs.1300 million
23 irregular purchase of property from pak. Arab housing
4.2.7
scheme, ferozepur road lahore-Rs.1,150.00 million
24 irregular purchase of property in crown plaza f-7,
4.2.9
islamabad-Rs.1,002 million
25 irregular purchase of plots in eden garden housing
4.2.10
scheme lahore-Rs.1,000.000 million
26 irregular purchase of f365 residential and 65
4.2.11 commercial plots in scheme' eden villas'-Rs.900
million.
27 Projec/scheme of amount Rs-17,437 million approved
4.4.4
by non-competent authority
28 EOBI Wasteful Expenditure due to non-Operation of
15.1.4.3
HVAC System-Rs.80.715 Million
29 Non-Completion of Construction of Residential building
15.1.4.15
at sialkot-RS. 67.375 million
30 Loss Due to award of contracts at Higher Rate -
15.1.4.21
Rs.13,730.122 million
31 Loss Due to award of contract at increased cost-
15.1.4.22
Rs.452.000 million
20
32 Irregular payment of secured advance-Rs,159.036
15.1.4.23
Current Audit and the Pendency

• Following is the status of current AIRs i.e. 2023-24 relating to EOBI

and progress:

S# Entity Paras Status

DAC yet to be
1 EOBI Head Office 36 convened
2 EOBI (B&C), Faisalabad 10 -do-

3 EOBI B&C, Karachi 04 -do-

DAC has been
4 EOBI, RO (South) Lahore 12 convened on all paras.

21
Paras of Significance /
Repetitive Paras
S# Para Description Audit Report

1 Non-recovery of arrears of contribution 2020-21, 2021-22,

from defaulting employers 2022-23
Payment of gratuity in addition to
2 Contributory Provident Fund (CPF) 2020-21, 2021-22

3 Non-reconciliation of contribution 2020-21, 2021-22

collection with banks
4 Non-Compliance of Statutory Provision 2020-21, 2021-22
regarding preparation of Annual Accounts

22
THANK YOU

23