In a shocking revelation, top auditors have reportedly unearthed financial irregularities amounting to a staggering Rs.14 billion in the financial records of the Pakistan Super League (PSL). The findings, including non-transparent contracts and substantial losses, have sent shockwaves through the cricketing community.
Key Findings from the Audit
- Non-transparent Contracts: The audit revealed a non-transparent contract valued at Rs.1.4 billion for the sale of TV broadcasting rights, violating operational transparency clauses.
- Financial Losses: The Pakistan Cricket Board (PCB) incurred financial losses of Rs.908 million due to an irregular advance payment to vendors, lack of well-defined financial rules being a contributing factor.
- Unauthorized Broadcasting Contracts: One of the joint bidders for TV broadcast rights for PSL 7-8 was not authorized, resulting in a loss of Rs.4.3 billion. An irregular renewal of franchisees’ percentage share in the central pool caused an additional loss of Rs.1.6 billion.
- Lack of Transparency in Contracts: Several contracts, including those for Instadia sponsorship rights, live streaming rights, and graphic interchange rights, lacked transparency, leading to financial discrepancies.
Further Details from the Audit Report
- Failure in Recovering Amounts: Agreements with M/S Techfront and M/S Blitz for TV broadcasting rights failed to recover the Global Live Streaming amount, totaling Rs.194.741 million.
- Outstanding Dues: Challenges in recovering outstanding dues amounting to Rs.133 million from M/S Khaleef Technologies Incorporated were identified.
- Risk to Financial Stability: Granting franchise rights for PSL teams without securing bank guarantees posed a risk of Rs.3.2 billion to the league’s financial stability.
- Unauthorized Absorption of Costs: PCB’s decision to roll over Rs.758,745,086 in Habib Metropolitan Bank Limited without proper authorization resulted in an unauthorized absorption of incremental costs, leading to a substantial loss.
Call for Enhanced Financial Oversight
The audit report emphasizes a critical need for enhanced financial oversight and governance within the PCB to prevent such colossal losses in the future. The lack of transparency in contracts, unauthorized decisions, and failure to recover significant amounts paint a concerning picture of financial mismanagement.
PCB’s Response and Way Forward
While the PCB recently finalized an agreement with Blitz Advertising Pvt Ltd for television broadcast and live streaming rights, concerns about income tax deduction from prize money and financial records from previous years persist. The cricketing community awaits the PCB’s response and actions to rectify the situation, ensuring a more transparent and financially sound future for the Pakistan Super League.
