ISLAMABAD: The Auditor General of Pakistan (AGP) has raised serious questions over alleged malfeasance in the Power Planning and Monitoring Company (PPMC), a think tank of the Power Division that receives hefty remuneration packages and replaced the Pakistan Electric Power Company (Pepco). According to Chapter 4, Clause 6.10 of the PPMC HR Manual, if a selected candidate does not accept the offer or is unable to join within the agreed or extended timeframe, the alternate candidate placed on backup is to be issued an offer letter. Clause 6.11 further states that if the alternate candidate also fails to join, the hiring process for the post must be annulled and re-initiated. READ MORE: PD’s arm fails to adjust GENCOs’ staff in Discos Official documents reveal that during the audit of the Managing Director, PPMC Islamabad, for the financial year 2024–25, it was observed that PPMC initially advertised nine (09) posts of Management Trainee Officers (MTOs) in four categories in February 2025. Against these posts, 2,940 applications were received, and 822 candidates were short-listed. However, without issuing any corrigendum or re-advertisement, the number of posts was increased in multiple stages from nine to 25 in June 2025 and subsequently to 28, in clear violation of transparent recruitment practices. The audit further highlighted inconsistent application of recruitment procedures. While alternate candidates were offered appointments in certain categories where selected candidates failed to join no alternate candidates were offered appointments in the MTO (Finance) category despite the availability of short-listed candidates and existing vacancies. Moreover, varying assessment thresholds were applied across different categories. Candidates with lower consolidated assessment grades were selected in some cadres, whereas higher thresholds were applied for MTO (Finance), resulting in non-selection and continued vacancies. As a result, the recruitment process remained inconclusive, leaving 16 out of 28 sanctioned MTO posts vacant across various categories. The audit attributed these lapses to weak compliance with the HR Manual, absence of structured manpower planning, lack of transparency in increasing the number of posts, and inconsistent application of selection criteria. Consequently, PPMC faced avoidable manpower shortages, delays in operational support, and erosion of fairness and credibility in its recruitment process. The audit concluded that weaknesses in the recruitment process led to irregular expansion and non-finalization of the MTO hiring process, resulting in prolonged vacancies up to the financial year 2024–25. The matter was taken up with the management in December 2025; however, no response was received to date. The AGP has recommended that PPMC must ensure strict compliance with the HR Manual by issuing corrigenda or re-advertisements for increased posts and by timely offering appointments to alternate candidates. It further advised that the recruitment process be finalized expeditiously by applying uniform selection criteria to fill existing MTO vacancies. Separately, the audit also raised objections to the irregular payment of board meeting fees amounting to Rs 0.780 million to the Managing Director/Deemed Director. During the test audit of accounts of the Managing Director, PPMC Islamabad, for the period 2024–25, it was observed that board meeting fees totaling Rs 0.780 million were paid to Abid Lodhi, MD/Executive Director of PPMC. However, no documentary evidence was provided to establish that such payments were explicitly included in his approved terms and conditions of appointment, endorsed by the competent authority under the applicable SOE remuneration framework, or specifically approved by the Board or shareholders as a distinct entitlement. The audit further noted that the Managing Director was already drawing regular remuneration, and the payment of board meeting fees in addition to his salary was not supported by a clear approval mechanism distinguishing executive compensation from Board-level fees, as required under the SOE governance framework. In the absence of explicit approvals and segregation of compensation, the expenditure was deemed irregular, posing a risk of double compensation and potential misuse of public funds. This reflected weak governance controls over executive remuneration and non-compliance with the principles of prudent financial management under the SOE Act, 2023. The audit observed that the imprudent decision resulted in irregular payment of board meeting fees amounting to Rs 0.780 million up to the financial year 2024–25. The issue was taken up with management in December 2025, but no reply was received. The AGP has recommended that PPMC ensure payments of board meeting fees to executive officers are explicitly approved by the competent authority, clearly stated in the approved terms and conditions of appointment, and distinctly regulated to prevent double compensation, in accordance with the SOE Act, 2023, and applicable ownership and remuneration policies. Copyright Business Recorder, 2026