Pakistani embassy official in Austria embezzles Rs166m, flees with wife

ISLAMABAD: The Auditor General of Pakistan has detected a fraud of Rs166 million in the embassy of Pakistan in Austria.

According to the audit report, a copy of which is available with the HUM Investigation Team, the mission officer embezzled Rs166 million by transferring government funds into secret accounts belonging to himself and his wife, before fleeing to an “unknown location.”

The report said that the officer forged official documents and signatures in 2020 to carry out the fraudulent transactions before fleeing Austria.

The audit revealed that Rs128,290,505 (€442,256.42) and Rs37,406,758 ($134,291.45) were siphoned off from the embassy’s bank accounts through tampering with official documents (transactions).

“Despite recommendations for his dismissal, recovery of funds, and further punishment, the authorities concerned failed to recover the embezzled amount as of November 2023,” the audit report said.

“The Ministry of Foreign Affairs refused to provide the inquiry report to the audit team,” the report said, adding that other officers posted at the Austrian mission may also be involved in the corruption.

It further added: “According to the dismissal order (No. Estt (V)-6/7/2010 dated 17.02.2020), the accountant was found guilty and handed a major penalty of recovery of €442,256 and $134,292, along with dismissal from service. However, the management failed to recover a single penny from the accused until the audit in November 2023.”

Also read: Audit uncovers massive irregularities worth Rs 7.19b in KP Food Department

The report observed that the detailed inquiry conducted by the Ministry of Foreign Affairs (MOFA) was not shared with the audit team, preventing a full assessment of facts and findings.

Citing government rules, the audit noted: “The Head of the Mission (HOM) bears immediate responsibility for the mission’s financial management and operations. However, no action was taken against the HOM, Head of Chancery (HOC), or the six joint signatories of the mission’s bank accounts for negligence in supervision.”

The report said there appeared to be the possibility of other officers’ involvement, but this aspect was overlooked.

The matter was again reported to the management in February 2024, the report said adding that “the audit recommended immediate investigation against the then head of mission and other officials, along with the recovery of $134,000 and €450,000 from officers posted at the mission.

In response, the management claimed that €17,328 had been recovered from the ex-accountant.

It concluded that due to the negligence of the HOM, HOC, and other signatories, along with a lack of internal financial control, the treasury suffered a significant loss due to the accountant’s fraud.

Meanwhile, the Ministry of Foreign Affairs stated that disciplinary action was being taken against the officer involved in the embezzlement.

Zahid Gishkori