Auditor’s findings: Nine mega NHA projects go uninsured
Nine infrastructure projects worth over Rs29 billion do not have insurance, which is mandatory by law
ISLAMABAD:
The federal auditor general’s office in its audit report 2013-14 has observed that the National Highway Authority (NHA) has not obtained insurance policies of at least nine infrastructure projects from the respective contractors worth over Rs29 billion — which otherwise is mandatory under the rule.
According to the recently released audit reports, the NHA did not obtain insurance policies for works, equipment, plant, vehicles etc amounting to Rs29,879 million from the contractors in nine mega projects. The absence of insurance arrangements put the workmanship and equipment at risk and increased the vulnerability of NHA to incur a huge liability in case of an incident.
The audit report maintains that this violation of cited contract clause occurred due to weak internal control. Audit reports pointed out this irregularity during the period of July-November 2013. It further observes that these matters were discussed in the Departmental Accounts Committee’s (DAC) meetings held on November 26, 27 and December 27, 27, 2013, wherein the committee issued directives to obtain insurance policies, effect recovery of premium for uninsured period and get the record verified from auditor’s office.
It mentions that with regard to the over Rs3 billion worth projects Kalat-Quetta-Chaman (N-25), DAC further directed NHA to get all the vehicles insured. In case of failure, the uninsured vehicles should be shifted to NHA headquarters and only insured vehicles should be kept in field to avoid loss of assets due to theft/damage.
Published in The Express Tribune, November 4th, 2014.
The federal auditor general’s office in its audit report 2013-14 has observed that the National Highway Authority (NHA) has not obtained insurance policies of at least nine infrastructure projects from the respective contractors worth over Rs29 billion — which otherwise is mandatory under the rule.
According to the recently released audit reports, the NHA did not obtain insurance policies for works, equipment, plant, vehicles etc amounting to Rs29,879 million from the contractors in nine mega projects. The absence of insurance arrangements put the workmanship and equipment at risk and increased the vulnerability of NHA to incur a huge liability in case of an incident.
The audit report maintains that this violation of cited contract clause occurred due to weak internal control. Audit reports pointed out this irregularity during the period of July-November 2013. It further observes that these matters were discussed in the Departmental Accounts Committee’s (DAC) meetings held on November 26, 27 and December 27, 27, 2013, wherein the committee issued directives to obtain insurance policies, effect recovery of premium for uninsured period and get the record verified from auditor’s office.
It mentions that with regard to the over Rs3 billion worth projects Kalat-Quetta-Chaman (N-25), DAC further directed NHA to get all the vehicles insured. In case of failure, the uninsured vehicles should be shifted to NHA headquarters and only insured vehicles should be kept in field to avoid loss of assets due to theft/damage.
Published in The Express Tribune, November 4th, 2014.