Audit finds NUML kept Rs1.04bn in 16 unapproved bank accounts

The National University of Modern Languages held Rs1,039,656,124 in 16 bank accounts opened without approval from the Finance Division, according to the Auditor General of Pakistan's audit report for 2025-26.

The balance stood at that figure on June 30, 2024. The accounts held student fees, scholarship money, the library fund, security deposits, pensions, the General Provident Fund, employee advances and accommodation charges for female students.

The largest single balance was Rs268.58 million in the account for fees from functional courses. The pension fund held Rs233.76 million and the General Provident Fund Rs112.47 million. A separate account for M Phil and PhD fees held Rs97.63 million.

Auditors said the accounts were not operated through the Treasury Single Account, the central cash management system for government money. Under the Cash Management and Treasury Single Accounts Rules 2024, existing bank accounts were to be reviewed jointly by the Finance Division and the department concerned, with unnecessary accounts closed and their balances moved to the Federal Consolidated Fund or the Public Account.

NUML management told auditors the university was autonomous, established under a Presidential Ordinance in 2000, and managed its academic and administrative affairs independently. Auditors rejected the explanation, noting NUML was specifically named in a Finance Division notification of January 31, 2023 bringing it under the Treasury Single Account. The audit called the arrangement a violation of public finance rules, irregular and unjustified, and recommended that every commercial bank account be approved or closed with its balance transferred.

A second finding concerns six retired personnel appointed on contract who received Rs7,106,800 in excess salary during the financial year 2024-25. The university has an approved basic pay scale for regular employees and a separate contractual structure, but auditors found the six were paid under a package issued by the Military Welfare and Rehabilitation Directorate, meant for retired personnel re-employed in Defence organisations.

The six were the Director Administration, Director Human Resource, Director Regional Services, Additional Director Planning and Infrastructure, Staff Officer and Management Trainee Officer. The Director Administration and Director Human Resource each drew an additional Rs1.60 million over eight months. The Director Regional Services, the Additional Director Planning and Infrastructure and the Staff Officer each received Rs934,656 in excess payments, and the Management Trainee Officer Rs1.08 million.

Auditors declared the use of the military package irregular and unauthorised. They said the matter was reported to management on October 16, 2025 and no reply had arrived when the report was finalised, and recommended recovery of the Rs7.1 million along with adherence to the approved pay structure in future appointments.

The report also questioned the appointment of a Brigadier as Director General and Pro Rector on October 1, 2023. Section 11 of the NUML Ordinance 2000 requires the Director General to be a language-qualified Brigadier from the Army Education Corps, appointed by the Chairman of the Board. The audit found the officer belonged to the Baloch Regiment, an infantry regiment, and declared the appointment inconsistent with the university's law. It recommended that the Board of Governors review the matter. It was reported to management on November 5, 2025, and no reply had been received before the report was finalised.

The Auditor General recommended that all future appointments follow the NUML Ordinance.