Audit report: Fiscal indiscipline costs Rs259m to taxpayers
Owing to poor planning and execution, Pakistan Rangers lost around Rs259 million in 12 projects during the last fiscal year, revealed the audit report 2010-11.
Project Officer (PO) Pakistan Rangers (Punjab) spent Rs69 million for supply of construction material in district Sialkot but did not record the measurements to assess the consumption of material.
The office of the Auditor General of Pakistan (AGP) pointed out that funds were withdrawn on an irregular basis due to weak internal and financial controls in March 2009.
While the department replied that the construction material was purchased through the contractor, and its consumption maintained properly on stock register, the AGP termed the reply not satisfactory due to lack of documentary evidence.
The PO also awarded a contract to a firm that did not fulfill the criteria mentioned in the tender, causing a loss of Rs58 million to the national exchequer. The firm, M/s Zecon Engineers, was registered with the Pakistan Engineering Council for undertaking projects worth less than Rs10 million, and the contract was awarded for construction work in district Sialkot worth Rs58 million.
The office of the PO said the firm was authorised to undertake projects up to Rs100 million, not Rs10 million but the auditors said the reply was ‘not maintainable.’
In another instance, the PO made a payment of Rs43 million for procurement of material without inviting tenders as per the public procurement rules.
Auditors continued to reveal massive irregularities in Pakistan Rangers when they observed that Rangers administration did not pay stamp duty and capital value tax while purchasing land from State Bank of Pakistan, causing a loss of Rs27 million to the exchequer.
Further investigations revealed that Ministry of Interior granted permission to Pakistan Rangers (Punjab) for construction of accommodation under seven different projects worth Rs26 million on their own authority without inviting tenders.
The POs purchased material such as cement, steel crush and sand through contractors without approval of authorities concerned and never invited tenders for them.
The AGP observed that these practices were in clear violation of the procurement rules.
Published in The Express Tribune, May 30th, 2011.
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