Rs30m embezzled from Balochistan Education Department

Rs17.7 million were embezzled from the Balochistan department of Education.

QUETTA: An audit of the Balochistan Education Department unearthed an embezzlement of Rs30 million.

The scam was discovered in the 2010-2011 audit. The auditor’s report said the Balochistan director of schools had bought furniture and laboratory equipment for schools costing Rs17.7 million at the end of the financial year 2009-10. However, the furniture and laboratory equipment were never delivered to the department.

A thorough investigation into the matter is recommended in the report to retrieve the public funds and hold the scammers accountable.

The purchases were made from private contractors against the Finance Department's instructions issued on December 4, 2007.

In addition, 100% payments were made to all contractors/firms on fully vouched contingent bills, but the stores (scientific equipment and furniture) never received the goods.

The storekeeper had informed in a written letter dated May 24, 2010, that the stores had not received any products. The contractors/firms failed to make supply to the store in the Directorate or to the respective schools. Payments without receipt of stores/equipment etc were tantamount to embezzlement, the audit report stated candidly.

The auditor observed that weak internal administrative controls resulted in fraudulent withdrawals. The matter was reported to the Department in November 10 and 15 2010, but no reply was received. Despite repeated written requests on December 10 and 15 2010, the authorities concerned did not convene a DAC meeting till finalization of this report.

A thorough investigation into the matter needs to be conducted and recovery of the amounts effected from the concerned immediately, the Auditor directed.

Meanwhile, the audit report unearthed embezzlement of Rs12.961m at the Directorate of Primary Education as the amount was supposed to be transferred to the Provincial Government or Administrative Department but was instead transferred to people through cheques by making fake stamps.

The report said that the Directorate of Primary Education was abolished in 2001. A current Bank Account No. 6730-7 at National Bank of Pakistan MA Jinnah Road, Quetta, should have been closed on the same date and time accordingly, with the balance amount transferred into Provincial Account No. 1 of Government of Balochistan or to the Administrative Department.

However, the Directorate of Education, Schools, Balochistan, let an amount of Rs 12,960,561 lying in the bank since 2001. After a lapse of seven years approximately, the amount in question was drawn upon through numerous cheques on different dates through fake stamps.

No description of expenditure and record, vouchers/counterfoil of cheques were made available to audit despite repeated requests, therefore, para was developed on the basis of Bank Statement.

The matter was reported to the Education Department in November 2010 but no reply was received. Despite repeated written requests on December 10 and 15 2010, the concerned officials failed to convene the Audit Committee meeting till finalisation of the audit report.
The auditor said an inquiry needs to be conducted into this serious matter with the purpose of recovering the amount from the persons at fault under intimation to Audit.

Besides all such dormant accounts need to be intimated to the Finance Department for making the same lapsed to the Provincial Consolidated Fund.

Balochistan has 35 per cent literacy rate, much less than the other three provinces.

Slain former Provincial Minister Education Shafiq Ahmed Khan during a news conference had admitted that massive planning is needed to eradicate corruption and embezzlement in the education sector.

At a seminar organised by Transparency International in Karachi, Syed Arif Kamal, a member of the department of mathematics in Karachi University spoke about the education sector being the "most corrupt" in Pakistan.

“There are over 12,000 ghost schools in Pakistan. The money poured into these dysfunctional schools goes unnoticed," he said.




The scam was discovered in the 2010-2011 audit. The auditor’s report said the Balochistan director of schools had bought furniture and laboratory equipment for schools costing Rs17.7 million at the end of the financial year 2009-10. However, the furniture and laboratory equipment were never delivered to the department.

A thorough investigation into the matter is recommended in the report to retrieve the public funds and hold the scammers accountable.

The purchases were made from private contractors against the Finance Department's instructions issued on December 4, 2007.

In addition, 100% payments were made to all contractors/firms on fully vouched contingent bills, but the stores (scientific equipment and furniture) never received the goods.

The storekeeper had informed in a written letter dated May 24, 2010, that the stores had not received any products. The contractors/firms failed to make supply to the store in the Directorate or to the respective schools. Payments without receipt of stores/equipment etc were tantamount to embezzlement, the audit report stated candidly.

The auditor observed that weak internal administrative controls resulted in fraudulent withdrawals. The matter was reported to the Department in November 10 and 15 2010, but no reply was received. Despite repeated written requests on December 10 and 15 2010, the authorities concerned did not convene a DAC meeting till finalization of this report.

A thorough investigation into the matter needs to be conducted and recovery of the amounts effected from the concerned immediately, the Auditor directed.

Meanwhile, the audit report unearthed embezzlement of Rs12.961m at the Directorate of Primary Education as the amount was supposed to be transferred to the Provincial Government or Administrative Department but was instead transferred to people through cheques by making fake stamps.

The report said that the Directorate of Primary Education was abolished in 2001. A current Bank Account No. 6730-7 at National Bank of Pakistan MA Jinnah Road, Quetta, should have been closed on the same date and time accordingly, with the balance amount transferred into Provincial Account No. 1 of Government of Balochistan or to the Administrative Department.

However, the Directorate of Education, Schools, Balochistan, let an amount of Rs 12,960,561 lying in the bank since 2001. After a lapse of seven years approximately, the amount in question was drawn upon through numerous cheques on different dates through fake stamps.

No description of expenditure and record, vouchers/counterfoil of cheques were made available to audit despite repeated requests, therefore, para was developed on the basis of Bank Statement.

The matter was reported to the Education Department in November 2010 but no reply was received. Despite repeated written requests on December 10 and 15 2010, the concerned officials failed to convene the Audit Committee meeting till finalisation of the audit report.
The auditor said an inquiry needs to be conducted into this serious matter with the purpose of recovering the amount from the persons at fault under intimation to Audit.

Besides all such dormant accounts need to be intimated to the Finance Department for making the same lapsed to the Provincial Consolidated Fund.

Balochistan has 35 per cent literacy rate, much less than the other three provinces.

Slain former Provincial Minister Education Shafiq Ahmed Khan during a news conference had admitted that massive planning is needed to eradicate corruption and embezzlement in the education sector.

At a seminar organised by Transparency International in Karachi, Syed Arif Kamal, a member of the department of mathematics in Karachi University spoke about the education sector being the "most corrupt" in Pakistan.

“There are over 12,000 ghost schools in Pakistan. The money poured into these dysfunctional schools goes unnoticed," he said.