CDA lost Rs270m due to irregular expenditure

Published: November 5, 2010

Reasons include overpayments, deviation from approved designs

ISLAMABAD: A report presented before a special committee of the Public Accounts Committee on Thursday revealed around Rs270 million losses to CDA during 2001-02 because of non-recovery and irregular expenditure.

The audit department observed that the management could not perform its function as provided in the rules and regulations, indicating poor financial and budgetary management.

The major chunk of Rs116.765 million was incurred because of loss in ‘hire charges’ of the Machinery Pool Organisation and a further Rs42.765 million because of non-functioning machinery.

According to the audit observation, Machinery Pool Organisation of the authority could not keep its huge fleet of machinery operational to earn hiring charges for the authority.

The reports also show a loss of Rs24.072 million due to non-letting out of government buildings.

Moreover, Rs24.577 million loss was incurred due to excessive expenditure and Rs25.338 million could not be recovered on account of repair charges.

Besides, Rs8.746 million was incurred in the wake of overpayment. Out of these, Rs7.750 million was made due to use of excessive material, Rs.1.919 million due to non-observation of specifications, an overpayment of Rs1.710 million due to deviation from approved design and an agreement of a road work.

An amount of Rs1.058 million was overpaid due to non-observance of standard ratio of water charges and Rs1.658 million overpaid because of non-observance of specifications.

Published in The Express Tribune, November 5th, 2010.

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