Financial irregularities: Karakoram varsity facing over Rs70 million losses, says report

Auditor General asks for inquiry against those responsible.

ISLAMABAD:

Due to multiple irregularities and the carefree attitude of the management of Karakoram International University, the institute has incurred losses of more than Rs70 million in the award of contracts.

According to the Auditor General’s report, in a contract regarding the construction of a residential colony for the varsity staff, the vice chancellor’s house, a shopping centre, sanitation and sewerage system, pavement and the installation of streetlights, the contractor was overpaid an amount of Rs17.4 million.

In another instance, a contract that was to be awarded in April 2010 for a minimum sum of Rs3.43 million was awarded a year later to the same contractor for Rs13.47 million after he refused to work for the previous amount. This ended up in a loss of more than Rs10 million for the institute.

Previously, award letters were granted to contractors working on the ongoing projects at the institute which were cancelled after they failed to finish the construction on time. But instead of offering the same contracts to new contractors on risk and cost basis as defined by rules, they were issued new contracts due to which the varsity is yet to recover an amount of around Rs40.45 million on account of risk and cost charges.

The administration also released Rs6.3 million for filling, levelling and dressing of various sports grounds including one for polo.

The Auditor General has asked for an inquiry to pin responsibility for the huge deficit.

Published in The Express Tribune, August 28^th, 2013.