Irregularities in ERRA accounts

Investigation into the matter of unrecorded receipts be launched, appropriate action be taken against those involved.

No good news comes from the Earthquake Reconstruction and Rehabilitation Authority (ERRA) when it comes to its accounts department. The list of complaints are manifold: the irregularities and embezzlements are embarrassing to say the least, not to mention depressing for an establishment that was set up to alleviate the miseries of those affected by the devastating 2005 earthquake. Perhaps, it seems unfair to tarnish its reputation in one stroke as an entirely inept organisation, for it has aided in the rehabilitation of scores of people but unfortunately, it has been tainted with corruption since the onset because its affairs have been so mismanaged. The latest newspaper report on January 27 is no exception: according to the draft audit report of 2011 to 2012, approximately Rs14.71 billion was shown in ERRA’s books but the reconciliation was not available on record with the Accountant General of Pakistan Revenue (AGPR). This is not the first time this has happened. In 2008-09, Rs1.234 billion difference of unreconciled amount was reported in the audit report, according to the recent report. ERRA did not reconcile its budget and expenditure on a monthly basis and report it to the AGPR, as it is required to do, despite reminders from the government. The report also goes on to state that the “reconciliation of the statement of expenditure for June 2011 showed a difference of Rs569.98 million between ERRA’s books and AGPR’s accounts”.

The audit report’s recommendations that an investigation into the matter of ERRA’s unrecorded receipts be launched and appropriate action be taken against those involved in attempting to hide anything from the government are valid and must be taken seriously and immediately. One may not be able to recover the Rs1.62 billion from the 37 cases that have been lost according to this audit report. But the ineptitude with which ERRA has mishandled so much can be brought to a halt herewith if the authorities concerned decide to take action in this matter.