![unjustified expenditure major irregularities surface in armed forces accounts unjustified expenditure major irregularities surface in armed forces accounts](https://i1.tribune.com.pk/wp-content/uploads/2011/06/Pakistan-army-EPA11111-145753-183244.jpg)
The auditor-general of Pakistan has unearthed massive financial irregularities amounting to Rs56.5 billion in the accounts of the armed forces during fiscal year 2011.
According to the Audit Report 2011 on accounts of defence services, irregularities occurred due to negligence, ineffective internal controls, embezzlement and misuse of authority by officers of the armed forces.
Around 330 contract agreements were concluded from 2008 to 2010 without following the procedure laid down in the Public Procurement Rules 2004, the auditors observed.
When they pointed out irregularities, the executive stated that the ministry’s instructions were received in June 2010. The auditors said that the reply is not tenable.
Auditors found that the Pakistan Army blocked Rs3 billion in funds due to unnecessary procurement and inappropriate storage of 1,385 new vehicles at the Central Ordnance Depot, Karachi. The vehicles have not been used for the last three years.
The report discovered excess transfer of funds to the Frontier Works Organisation (FWO) for procurement of bullet-proof jackets. Out of the Rs424.2 million allocated for them, the FWO has to refund some Rs385 million in addition to the loss it incurred on account of risk and expense contracts after the supplier, Musterhaft Pvt Ltd, failed to provide more than 1,000 jackets.
The expenditure incurred on building material purchased for renovation by the military is unaccounted for since there is no record of the quantity procured and its subsequent use. The irregularities amount to Rs52.7 million in Kharian, Sialkot and Lahore cantonments. Auditors stated that executive authorities could not prove that repair work was carried out on self-help basis. Irregularities in purchase of pre-fabricated accommodation for UN missions amounted to Rs92 million, in addition to payment of Rs14.6 million as General Sales Tax, which needs to be recovered from the supplier.
Irregularities amounting to Rs6 billion surfaced in the Pakistan Aeronautical Complex, Kamra, on account of irregular conclusion of contracts and procurement of goods during the current fiscal year. Pakistan Air Force (PAF) lost Rs102 million due to non-recovery of five per cent rent on flying allowance from General Duty Pilots in the past 20 years. The record was not provided on request. Auditors observed that this amounts to blatant disobedience and ineffectual administration. Failure to deposit rent in the government treasury caused a loss of Rs14.6 million by the PAF Academy, Risalpur.
The navy failed to transfer 50 per cent accommodation charges paid by foreign trainees in the government treasury, resulting in the loss of $65,516. Auditors also observed that Rs6 million incurred on excess issue of food items in PNS Bahadur and PNS Mehran for the year 2009-10 needs to be reimbursed. An amount of Rs76 million has still not been recovered by the Military Accounts General after irregularities were discovered on account of unauthorised payments to reemployed officers of the Pakistan Navy in 2009-10.
Military Lands and Cantonment inflicted a loss of Rs181 million to the cantonment fund due to irregularities in awarding lease. Cantonment Board, Lahore lost Rs30 million due to its failure to revise the tax rate on immovable property. Fraud and embezzlement caused a loss of Rs68 million to Cantonment Board, Rawalpindi in 2008. Failure to recover Rs97 million in dues added to the losses incurred by various boards. The auditors pointed out the irregularities and observed that their replies were not satisfactory.
Published in The Express Tribune, June 6th, 2011.
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