Audit report 2014-15: ERRA accounts show Rs1.2tr anomalies
The report on reconstruction authority contains 31 audit objections
Overpayment to the contractor due to wrong applications of rate amounted to R2.197 million, while Rs34.299 million losses were detected due to irregular retention of ERRA’s assets by the National Highway Authority. PHOTO: INP
ISLAMABAD:
An audit report compiled by the Auditor-General of Pakistan (AGP) identified irregularities and misappropriations amounting to Rs1.2 trillion in accounts of the Earthquake Reconstruction and Rehabilitation Authority (ERRA). The report was filed for fiscal year of 2014-15.
The report contains 31 audit objections, including Rs292.312 million in non-reporting of savings to the Finance Division in addition to non-transfer of Rs978.45 million, Rs7,901.6 million in difference in expenditure of third party payments by the authority Rs4,444.701 million in non-disclosure of liabilities on account of third party payments against withdrawal application.
According to details, Rs1,193.760 million were detected in unauthorised withdrawals of funds from assignment account, Rs108.461 million in non-deposit of profit/interest into the government treasury, Rs1,377.463 million in non-disclosure of assets and Rs3,051 million in non-payment of matured liabilities.
At least Rs88.78 million were detected in improper reconciliation and understatement of closing cash balance, Rs520 million in unauthorised treatment of release and expenditure, Rs2,174.656 million in non-reporting of savings to the Finance Division at the end of the year and Rs34.774 million in non-deposit of profit into government treasury.
About Rs1.342 million were detected in non-imposition of liquidated damages, Rs14.321 million in irregular award of contract, Rs22.8 million undue favour to a consultant, Rs2.916 million in unjustified expenditure on account of salary of Financial Management Information System and Rs26.72 million in irregular payment of consultancy.
As much as Rs730.326 million were detected in non-closure of original PC-1, Rs43.943 million in irregular withdrawal of allowances/ unity charges, 1.183 million in overpayment to a contractor because of wrong application of rate by NESPAK and Rs7.07 million in overpayment to a contractor because of non-deduction of cost material obtained from site.
Overpayment to contractor due to excess measurement of width of street and roads accounted to Rs18.338 million, Rs16.511 million in double payment on account of stripping and had fill, Rs3,724.621 million in losses due to time and cost overruns, Rs52.611 million under benefit to the contractor due to unjustified increase in execution of higher value items and Rs3.347 million in wastage of resources due to non-utilisation of excavated resources.
Overpayment to the contractor due to wrong applications of rate amounted to R2.197 million, while Rs34.299 million losses were detected due to irregular retention of ERRA’s assets by the National Highway Authority, Rs495.757 million in delays in project implementation due to mismanagement, Rs3.586 million in losses to the government due to payment of demurrage charges, Rs7.764 million in irregular expenditure on account of repaid of transport.
Published in The Express Tribune, October 15th, 2016.
An audit report compiled by the Auditor-General of Pakistan (AGP) identified irregularities and misappropriations amounting to Rs1.2 trillion in accounts of the Earthquake Reconstruction and Rehabilitation Authority (ERRA). The report was filed for fiscal year of 2014-15.
The report contains 31 audit objections, including Rs292.312 million in non-reporting of savings to the Finance Division in addition to non-transfer of Rs978.45 million, Rs7,901.6 million in difference in expenditure of third party payments by the authority Rs4,444.701 million in non-disclosure of liabilities on account of third party payments against withdrawal application.
According to details, Rs1,193.760 million were detected in unauthorised withdrawals of funds from assignment account, Rs108.461 million in non-deposit of profit/interest into the government treasury, Rs1,377.463 million in non-disclosure of assets and Rs3,051 million in non-payment of matured liabilities.
At least Rs88.78 million were detected in improper reconciliation and understatement of closing cash balance, Rs520 million in unauthorised treatment of release and expenditure, Rs2,174.656 million in non-reporting of savings to the Finance Division at the end of the year and Rs34.774 million in non-deposit of profit into government treasury.
About Rs1.342 million were detected in non-imposition of liquidated damages, Rs14.321 million in irregular award of contract, Rs22.8 million undue favour to a consultant, Rs2.916 million in unjustified expenditure on account of salary of Financial Management Information System and Rs26.72 million in irregular payment of consultancy.
As much as Rs730.326 million were detected in non-closure of original PC-1, Rs43.943 million in irregular withdrawal of allowances/ unity charges, 1.183 million in overpayment to a contractor because of wrong application of rate by NESPAK and Rs7.07 million in overpayment to a contractor because of non-deduction of cost material obtained from site.
Overpayment to contractor due to excess measurement of width of street and roads accounted to Rs18.338 million, Rs16.511 million in double payment on account of stripping and had fill, Rs3,724.621 million in losses due to time and cost overruns, Rs52.611 million under benefit to the contractor due to unjustified increase in execution of higher value items and Rs3.347 million in wastage of resources due to non-utilisation of excavated resources.
Overpayment to the contractor due to wrong applications of rate amounted to R2.197 million, while Rs34.299 million losses were detected due to irregular retention of ERRA’s assets by the National Highway Authority, Rs495.757 million in delays in project implementation due to mismanagement, Rs3.586 million in losses to the government due to payment of demurrage charges, Rs7.764 million in irregular expenditure on account of repaid of transport.
Published in The Express Tribune, October 15th, 2016.