Audit report: AGP finds gross irregularities in development projects

Published: October 15, 2016
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The auditor observed that the project was executed irregularly and the amount of Rs267.3 million was also not recovered. PHOTO: INP

The auditor observed that the project was executed irregularly and the amount of Rs267.3 million was also not recovered. PHOTO: INP

ISLAMABAD: The Auditor General of Pakistan (AGP) has found gross financial irregularities in several development projects.

According to the audit report for the year 2015-16, the National Logistic Cell has not returned the sum of Rs2.3 billion which was transferred to it in 2012 and 2013. The project was approved by the then PM Raja Pervaiz Ashraf.

As per the audit observation, the Islamabad High Court in March 2013 cancelled the assignment of works to NLC and gave orders for the return of amount to the Pakistan Public Works Department within one week after receiving the order. The audit observed that executive engineers in Islamabad did not receive the funds from NLC.

The development prompted the project contractor to file intra court appeal in the same court against the decision. The audit could not find the record of acceptance and further orders of the intra-court appeal. This resulted into non-receiving of principal amount of Rs2.3 billion and interest of about Rs641 million on the basis of 10% interest per annum.

The audit report observed that the Federal Government Employees Housing Foundation Islamabad awarded an amount of Rs1.4 billion for the construction of G-14/1,2,3 and G-15/3 sectors in 2012 while an amount of Rs112 million had been paid to contractor on account of mobilisation advance after 12 days. The auditor observed that the project was executed irregularly and the amount of Rs267.3 million was also not recovered.

Another controversial development scheme in the previous Pakistan Peoples Party era called Peoples Work Programme (PWP) has also come under the radar of AGP. The report observed that the government had an irregular expenditure of Rs95 million on 13 schemes under PWP.

Published in The Express Tribune, October 15th, 2016.

 

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