Audit reports show cooked books for 2 universities

MUET says report only defames a ‘world class’ university.

KARACHI: The auditor general of Sindh’s office has uncovered discrepancies worth millions of rupees in the accounts of Mehran University of Engineering and Technology, Jamshoro and Shah Latif University, Khairpur.

The audit reports for the years 2006-07 and 2007-08 were made available to The Express Tribune. They say that there was no proper record of expenditures and money was spent without supporting vouchers. Machinery and equipment were bought without inviting open tenders. Also, the universities paid people medical and other allowances that were not allowed under the rules.

Mehran University’s 2007-08 audit report shows that it paid Ms/Din Muhammad & Sons, Hyderabad, Rs11 million for transportation. But this entry was made under the wrong column of “POL charges” without the approval of the relevant authority. For its part, however, the university’s finance department said that they paid for this transport from the POL fund and the budget was approved by a competent forum. Even the vice chancellor  approved it at the time.

The department spokesperson said that in compliance with the audit, this payment is now being allocated as “hiring of private vehicles” and they are paying for transport from this account.

The AG Sindh noted that university officials were paid Rs3.429 million as advances but these entries were not made until the close of the fiscal year. The management had no satisfactory response to this discrepancy.

“All demands valuing Rs100,000 and above, except those of property, should be advertised through the press. In 2007-08, Rs76.206 million was spent on civil works and computers without inviting tenders,” the report said. It stated that this expenditure was pointed out in May 2008 but the management had no explanation.

The departmental accounts committee meeting was not held even though the auditor general Sindh issued a letter.

The report observed that different items worth Rs0.49 million were purchased without any documentary evidence. Also, Rs2.074 million was spent on books and as payment to the sports director, however, no supporting vouchers were available. In the absence of supporting documentation, the audit could not authenticate the expenditure.

Gazetted officers were paid Rs0.279 million in medical allowances but they were not entitled to this money.

University spokesperson Mushtaque Baloch said that all funds are used in a transparent manner. “Mehran University is among the top ranking universities of the world. This kind of news is only meant to defame it,” he said.

According to Baloch, Rs1,569,460 has been accounted for out of Rs3,428,557. They are working on adjusting the remaining Rs1,859,097. Baloch claimed that the purchase of computers and other items was accounted for in the relevant stock registers and that tenders were invited. Various departments maintain expenditure records, he declared, and reports that these records did not exist were unjustified.

The Shah Latif University audit report revealed that according to the revised Basic Pay Scale 2001, employees of grade BPS-17 and above were not permitted a medical allowance. Despite such a rule, grade 17 and above officers were paid Rs1.548 million in medical allowances. When the auditor general asked about this, the university said that the payments were made according to a medical policy and with the approval of the university syndicate. University officials were also reimbursed for medical bills.

The university spent Rs0.425 million on machinery and equipment without inviting open tenders, the report added.

University officials were given advance payments of Rs4.142 million but this amount was only shown in the books at the end of the financial year.

The Shah Latif University spokesperson said, however, that the outstanding amount had been recovered.

The audit noted that officers were paid Rs1.974 million in certain allowances but that they were not entitled to these perks.

This irregularity was pointed out to the department in 2009 but the university did not respond. In its reply to the auditor general, the management said that previously the university was part of Sindh University, Jamshoro and was working under its rules. “In Jamshoro, a conveyance allowance was given and it was paid by us,” said the university finance director.

Published in The Express Tribune, December 4^th, 2010.