Rs445m scam surfaces in MC accounts

Financial mismanagement, lack of oversight alleged

JARANWALA:

The Auditor General of Pakistan (AGP) has revealed financial irregularities amounting to Rs445.64 million in the Municipal Corporation (MC) accounts for the fiscal year 2022-23 and has called on Punjab local government authorities to take immediate action to ensure financial discipline and accountability.

Sources said the MC Infrastructure and Services, Engineering Branch initiated repair, improvement, and rehabilitation projects for LED street lights worth Rs68 million by splitting the schemes into four separate components to bypass the administrative approval of the District Development Committee, leading to irregular expenditures.

The audit report also found that Rs57.32 million was spent on hiring machinery for removing encroachments and transporting edible items to Sasta Ramazan Bazaars without inviting tenders or providing justification for invoking the urgency clause.

The AGP observed that the Chief Officer of MC spent Rs20.55 million on sports activities without obtaining approval from the provincial cabinet, thereby avoiding the required tendering process.

Further financial discrepancies included an unauthorised Rs5.36 million payment for the construction of a cattle market at Chak 235 RB, a project that was supposed to be managed by the Punjab Cattle Market Management and Development Company.

The required records, including project estimates, technical sanction, contractor bills, and the measurement book, were not maintained.

The report further highlighted the failure of MC officials to recover Rs150.368 million in conversion fees from commercial building owners who constructed sites without approval.