PSL Audit Reportedly Reveals Alleged Financial Irregularities Valued at Rs. 14 Billion
Reports suggest that leading auditors have reportedly unveiled significant irregularities, including opaque contracts and substantial losses totaling Rs14 billion, within the financial accounts of the Pakistan Super League (PSL).
Documents reveal that the Pakistan Cricket Board (PCB) entered into a non-transparent contract worth Rs1.4 billion for the sale of TV broadcasting rights. The PCB suffered financial setbacks of Rs908 million due to an irregular advance payment to vendors, attributed to the absence of clearly defined financial rules, as highlighted in the Auditor General of Pakistan’s (AGP) report.
Furthermore, the non-authorization of a joint bidder for TV broadcast rights and the irregular renewal of franchisees’ percentage share in the central pool resulted in additional losses of Rs4.3 billion and Rs1.6 billion, respectively, according to the audit report.
The audit also exposes non-transparent contracts for the sale of Instadia sponsorship rights and live streaming rights, valued at Rs338 million and Rs181 million, respectively. Additionally, agreements with Khaleef Technologies Incorporated and Transgroup FZE for graphic interchange rights and truck branding rights amounted to Rs46 million and Rs15 million, respectively.
Challenges in recovering outstanding dues, failure to secure bank guarantees from franchises, and unauthorized absorption of incremental costs contributed to financial risks for the PCB. The audit identified issues with the non-recovery of a Global TV Broadcast fee, irregular broadcasting contracts, and absorption of additional costs related to foreign players, resulting in substantial losses.
An irregular renewal of franchisees’ percentage share in the central pool caused a significant loss of Rs1.6 billion, while concerns were raised about the non-transparent award of a contract for the sale of live streaming rights, valued at US$3 million.
The recent agreement with Blitz Advertising Pvt Ltd for television broadcast and live streaming rights, totaling US$3 million, lacked income tax deduction from the prize money, amounting to Rs32 million. The PCB’s expenditure of Rs147 million as doubtful debts in the profit and loss statement for PSL-6 in the financial records for 2020-21 further underscores the need for improved financial oversight and governance within the PCB.
