‘Over Rs 14 billion irregularities, non-transparent contracts unearthed in PSL 7 and 8 accounts’

Author: Special Correspondent

Former Test captain and Pakistan Cricket Board (PCB) Chairman Ramiz Raja said on Wednesday said that present PCB chief “Zaka Ashraf is an irregular himself.” Giving his response to Daily Times on a website report “Over Rs.14 billion irregularities, non-transparent contracts unearthed in PSL accounts”, Ramiz said “all the personnel from PSL eras are still working in the PCB under Zaka Ashraf.” The said report on ‘Hum News’ on Wednesday gave details of the “irregularities, non-transparent contracts” during the seventh and eighth editions of the PSL, Pakistan’s flagship T20 tournament. It is interesting to note that Ramiz was at the helm of affairs during the PSL-7 (2021) while Najam Sethi was heading the PCB when the eighth edition of the PSL-8 (2022) was held. Ramiz was removed from the post in December 2022 and was replaced with Sethi who later “pulled out” because did not want to be a “bone of contention” between Prime Minister Shahbaz Sharif and PPP co-chairman Asif Ali Zardari. Sethi’s ‘pull out’ was due to political horse-trading over the PCB chairman’s post to accommodate Zaka, a close buddy of Zardari. The report, it seems, has been leaked just to malign former chairmen Ramiz and Sethi, when Zaka himself is under the radar for running the PCB in an unfair and autocratic manner.

What the report says: According to the report, “top auditors have detected non-transparent contracts, losses, and serious irregularities totaling Rs14 billion in the accounts of the Pakistan Super League.” Official documents also revealed that the PCB secured a non-transparent contract worth Rs1.4 billion for the sale of TV broadcasting rights. The PCB suffered losses due to an irregular advance payment of Rs908 million to vendors for services, attributed to the absence of framed financial rules, according to a report by the Auditor General of Pakistan (AGP). The non-authorization of one of the joint bidders for TV broadcast rights for PSL 7-8, amounting to Rs4.3 billion, and an irregular renewal of the percentage share of franchisees for the central pool of income led to a loss of Rs1.6 billion, according to the audit report.

Auditors noted that the PCB failed to provide records of these transactions and agreements, nor did they inquire into the recommendations given by the auditors. According to the audit, the PCB awarded a non-transparent contract of Rs1.4 billion for the sale of TV broadcasting rights, violating clause 3(3) of PCB Constitution SRO 43(KE)/2014, emphasizing transparent operations. Agreements with M/S Techfront for the sale of Global and Local TV broadcasting rights resulted in a non-recovery of Global Live Streaming amounting to Rs194.741 million. A special audit further revealed a non-transparent contract worth Rs338 million with M/S Transgroup FZE for the sale of Instadia sponsorship rights. Another non-transparent contract of Rs181 million was awarded for the sale of live streaming rights.

The report also said that the PCB management entered into non-transparent agreements with M/S Khaleef and Transgroup FZE for the sale of graphic interchange rights and truck branding rights, amounting to Rs46 million and Rs15 million, respectively. An agreement with M/s Transgroup FZE/ITW Consulting FZE for the sale of Instadia sponsorship rights (gold, silver, umpire) amounting to US$ 7.805 million resulted in a payment of Rs147 million due to an unjustified provision for doubtful debts. According to the report, the PCB management also failed to recover outstanding dues worth Rs133 million from M/s Khaleef Technologies Incorporated. The audit team revealed that the PCB put PSL revenue at risk due to non-receipt of bank security from franchises, granting franchise rights of PSL teams to various franchises for PSL-V for an amount of Rs3.2 billion.

Auditors found non-authorization of one of the joint bidders for TV broadcast rights for PSL 7-8, amounting to Rs4.3 billion. An irregular broadcasting contract was awarded to an FM radio against whom outstanding dues of Rs14.274 million remained unrecovered. A case of non-recovery of Global TV Broadcast fee worth Rs1 billion was also pointed out by auditors. The PCB management decided to roll over Rs758,745,086 in Habib Metropolitan Bank Limited for one year, resulting in an unauthorized absorption of incremental costs, causing a loss to PCB amounting to Rs723 million. “The PCB absorbed incremental costs related to the travel and accommodation of foreign players, match fees, daily allowances, and additional production costs, aggregating to Rs178 million and USD 2.4 million (equivalent to Rs545 million at the exchange rate of Rs225) for the remaining 20 matches of PSL 6 played in UAE.” The audit observed that these charges were to be charged from the franchises but were booked to PCB. Auditors also revealed an irregular renewal of the percentage share of franchisees for the central pool of income, where the PCB management incurred a loss of Rs1.6 billion. The non-transparent award of the contract was given by PCB for the sale of live streaming rights of US$ 3 million.

The PCB entered into an agreement with another advertising company for the sale of television broadcast rights and live streaming rights amounting to US$ 3 million. The PCB did not deduct income tax on the payment of prize money amounting to Rs32 million. The PCB management paid prize money of Rs213 million to the match winners, players, etc., during PSL-5 (4 matches) and PSL-VI. The PCB management in Lahore charged an expenditure of Rs147 million as doubtful debts in the profit and loss statement of PSL-6 during the financial year 2020-21, as per the auditors.

‘Wish’ to remain in PCB forever: The fact is that the PCB has seen three chiefs – Ramiz, Sethi, and Zaka – during the past couple of years. The country’s richest sports body has lacked continuous and proper management as the country’s Prime Minister holds the reins of the cricketing administration. In the national sphere and the sporting arena the root of our dilemma is the notorious system of patronage and imposed cronies, to the exclusion of merit and professionalism. Under the powerful patron’s benevolent gaze, the pick and choose appointees can survive scandals and failures that would crush an ordinary mortal. To remain part of the PCB for a long time is a ‘wish’ of every person, particularly chairman, whenever they join the bandwagon. This ‘desire’ not only forces to malign others but also use of every dirty tactic to remain in power. It is pertinent to mention here that an audio leak, purportedly featuring a voice said to belonging to PCB chairman Zaka, has exposed how plans were in motion to remove Babar Azam as the national team’s all-format captain. It is lamentable that politization of the PCB is not only destroying the very fabric of the sport but also that of the board as well.

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