PPAF fails to use 31.5m euro grant transparently
The Pakistan Poverty Alleviation Fund (PPAF) has failed to transparently use a 31.5 million Euro grant extended by Germany to build infrastructure and create livelihood opportunities in Khyber-Pakhtunkhwa (K-P), The Express Tribune has learnt.
The fund’s management has admitted that it found gaps in the implementation of the Livelihood Support and Promotion of Small Community Infrastructure Project (LACIP), financed by Germany through KFW. However, it is trying to protect its top hierarchy who sanctioned the questionable transactions.
Irregularities in LACIP surfaced only after a whistleblower raised a red flag. So far, the problems arose in the execution of components of the project which were implemented by three of PPAF’s partner organisations, namely CSF, SPADO and Candle International.
An amount of Rs87 million was disbursed to these partner organisations by the PPAF, according to the PPAF officials.
“The inquiry committee thinks that various actions and incidents give strong indications of fraud, and an intention to mislead and misguide the senior management in the taking of critical decisions by the (Project Management Unit) PMU”. It added the PMU has compromised the operational ethics and reputation of the PPAF.
The inquiry report alleged that the general manager of the project did all in connivance with the Helvetas consultants – which was picked by the KFW to perform the monitoring task. KFW has so far paid 1 million Euros to Helvetas out of a total of 1.9 million Euros.
“Based on the inquiry committee findings, it is clear that the day to day supervision team from Helvetas had been co-opted by the LACIP management, in a way that has compromised their objectivity”, according to the findings.
The inquiry committee further alleged that PMU became “an island within the PPAF, totally separate from other operations”.
The inquiry report showed that the general manager of the project inducted the three partner organisations in a dubious manner. The appraisal reports provided to the Credit Committee for these implementing partner organisations carried forged signatures of team members and misrepresented the partner organisation history and capacity.
The PPAF has so far terminated the services of five officers including the LACIP GM but has shied away from fixing responsibility on the Risk Oversight Committee, Compliance and Finance Departments, underscoring the weakening internal controls in the PPAF.
Despite holding the GM responsible, the PPAF management paid him all the benefits and did not withhold his provident fund and gratuity to recover the embezzled amount.
When contacted, the PPAF management admitted wrongdoings in the project. It said the external auditors have been hired who will give detailed reports next month. The PPAF said it was not the fault of the PPAF system. The problems occurred due to creating a parallel system as enshrined in the KFW financing agreement, it said.
The KFW was also contacted but it did not give any response.
When contacted the former GM of the project claimed that the allegations were levelled against him only after he applied for the post of Chief Coordinator that was not taken well by couple of Group Heads in the PPAF. He said if any wrongdoing occurred, it was the responsibility of the Credit Committee, which is headed by Chief Executive Officer of the PPAF, Qazi Azmat Isa.
Published in The Express Tribune, September 30th, 2014.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ