Auditor unravels Jamshoro Power Company’s losses
The power generation company suffered a loss of Rs166.8 million in ten theft cases, according to Wapda’s 2010-11 audit report by the auditor general.
Financial fraud, misappropriation, absence of record, violation of rules and procedure, financial indiscipline, mismanagement, wasteful expenditure and poor performance further added to the losses, says the report.
The financial liabilities of the power generation company increased by 20% to Rs220.4 million mainly due to free electricity and medical facility to employees.
The management replied that being a public limited company, it was mandatory to create provision for employees post retirement benefits as per the law but the audit was of the view that the management should act in the best interest of the company by controlling all its unproductive expenses.
The auditors pointed out five cases pertaining to embezzlement of Rs32.9 million in Wapda while there were another five cases of misappropriation of Rs222.1 million. There were two non-production records of Rs5.2 billion.
Violation of operational rules and procedure observed in 67 cases show the loss of Rs32.7 million.
Contract mismanagement was observed in four cases of Rs103.01 million whereas three cases of wasteful expenditure of Rs37.5 million.
Another serious violation of rules and procedure pointed out by the auditors was that its internal audit department was not functioning since its formation in August 1998.
The auditor general has recommended that WAPDA and its corporate entities need to take necessary steps to evaluate and strengthen financial management, budgetary and accounting controls.
Published in The Express Tribune, December 27th, 2011.
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