Fraud in Balochistan: Rs30 million embezzled in education department

Audit report shows the money was swindled in two separate cases.

QUETTA:

In a province with a significantly lower literacy rate of 35 per cent as compared to other provinces, an audit report has revealed embezzlement worth Rs 30 million in the Balochistan Education Department.

According to the 2010-2011 Audit Report, the Directorate of Education (Schools), incurred an expenditure of over Rs17.8 million in order to purchase scientific equipment and furniture for educational institutions from various firms at the end of the financial year 2009-10.

While 100 per cent payment was made to all contractors/firms on fully vouched bills, the purchases, including scientific equipment and furniture, were never received. “Payments without receipt of stores/equipment etc were tantamount to be embezzlement,” stated the audit report. The education department’s storekeeper provided a written testimony to the audit department in 2010 stating that the equipment had never been received.

Besides, a total of over Rs11 million of this amount was paid in advance and provided undue financial favour to contractors, also in violation of the finance department’s regulations.

The auditor also observed that weak internal administrative control was what resulted in the fraudulent withdrawal.

The matter was reported to the education department on November 10, 2010 and once again on November 15 but no reply was received. Despite repeated written requests in December 2010, the authorities concerned did not convene the Departmental Accounts Committee meeting until the finalisation of the auditor’s report.

“A thorough investigation into the matter needs to be conducted and recovery of the amounts from the concerned must take place immediately,” the auditor wrote.

Fake stamps

Meanwhile, the audit report also unearthed, separately, embezzlement worth almost Rs13 million in the Directorate of Primary Education.  The amount in question was supposed to be transferred to either the provincial government or the administrative department, but was in fact transferred to people through cheques by using fake stamps.

The report said that the Directorate of Primary Education was abolished in 2001. A current account at the National Bank of Pakistan in Quetta should have, accordingly, been closed with the abolishment of the directorate. The balance was supposed to be transferred to a provincial account of the Government of Balochistan or to the administrative department.  The balance, worth Rs 13 million as mentioned above, had been lying in the bank since 2001, however. After seven years, the amount in question was drawn through numerous cheques on different dates by using fake stamps.

No description of expenditure details were made available to the audit despite repeated requests, so it was necessary to use bank statements instead.

Again, the matter, when reported, was ignored by the education department in November 2010 and through December, with officials failing to convene an audit committee meeting till the finalisation of the audit report.  The auditor stated that all dormant accounts must be “intimated to the Finance Department for making the same lapse to the Provincial Consolidated Fund”.

Former provincial minister education Shafiq Ahmed Khan, killed earlier this year, had admitted during a news conference that massive planning was needed to eradicate corruption and embezzlement in the education sector.

Published in The Express Tribune, October 25^th, 2011.

According to the 2010-2011 Audit Report, the Directorate of Education (Schools), incurred an expenditure of over Rs17.8 million in order to purchase scientific equipment and furniture for educational institutions from various firms at the end of the financial year 2009-10.

While 100 per cent payment was made to all contractors/firms on fully vouched bills, the purchases, including scientific equipment and furniture, were never received. “Payments without receipt of stores/equipment etc were tantamount to be embezzlement,” stated the audit report. The education department’s storekeeper provided a written testimony to the audit department in 2010 stating that the equipment had never been received.

Besides, a total of over Rs11 million of this amount was paid in advance and provided undue financial favour to contractors, also in violation of the finance department’s regulations.

The auditor also observed that weak internal administrative control was what resulted in the fraudulent withdrawal.

The matter was reported to the education department on November 10, 2010 and once again on November 15 but no reply was received. Despite repeated written requests in December 2010, the authorities concerned did not convene the Departmental Accounts Committee meeting until the finalisation of the auditor’s report.

“A thorough investigation into the matter needs to be conducted and recovery of the amounts from the concerned must take place immediately,” the auditor wrote.

Fake stamps

Meanwhile, the audit report also unearthed, separately, embezzlement worth almost Rs13 million in the Directorate of Primary Education.  The amount in question was supposed to be transferred to either the provincial government or the administrative department, but was in fact transferred to people through cheques by using fake stamps.

The report said that the Directorate of Primary Education was abolished in 2001. A current account at the National Bank of Pakistan in Quetta should have, accordingly, been closed with the abolishment of the directorate. The balance was supposed to be transferred to a provincial account of the Government of Balochistan or to the administrative department.  The balance, worth Rs 13 million as mentioned above, had been lying in the bank since 2001, however. After seven years, the amount in question was drawn through numerous cheques on different dates by using fake stamps.

No description of expenditure details were made available to the audit despite repeated requests, so it was necessary to use bank statements instead.

Again, the matter, when reported, was ignored by the education department in November 2010 and through December, with officials failing to convene an audit committee meeting till the finalisation of the audit report.  The auditor stated that all dormant accounts must be “intimated to the Finance Department for making the same lapse to the Provincial Consolidated Fund”.

Former provincial minister education Shafiq Ahmed Khan, killed earlier this year, had admitted during a news conference that massive planning was needed to eradicate corruption and embezzlement in the education sector.

Published in The Express Tribune, October 25^th, 2011.