ISLAMABAD: The Auditor General of Pakistan (AGP) has pointed out an estimated financial loss of Rs72 billion to Pakistan Railways (PR) owing to mismanagement, irregularities, excess expenditures, non-recovery and extra consumption of fuel like matters, revealed the audit report on the account of the PR for the year 2021-22.
The report finds that encroachment of PR land has caused a financial loss of Rs24.16 billion, non-adjustment of suspense balance Rs10.03 billion, and excess expenditures on over and above the allocated budget costed Rs7.37 billion.
Moreover, non-recovery of damages on account of non-production of sleepers and long ties caused financial loss of Rs6.29 billion to the PR, irregular mutation of land valuing cost Rs4.75 billion to the PR, and non-recording of acquired liability on account of interest and exchange risk premium on foreign loan cost Rs4.11 billion.
The AGP report further said that the PR suffered financial losses worth Rs3.40 million on account of non-recovery of the PR’s receivables, double booking of federal government investment on replacement account amounting to Rs3.4 billion, extra consumption of fuel costed Rs1.77 billion, procurement of substandard material caused Rs1.42 billion financial losses, and blockage of capital due to unnecessary procurement of material caused financial losses of Rs1.3 billion.
The PR suffered a financial loss of Rs863 million owing to the defective agreement with the National Logistics Cell (NLC).The PR suffered Rs837 million in financial losses owing to theft and misappropriation of material, Rs582.5 million losses recorded due to non-disposal of scrap, and additionally, PR suffered financial losses of over Rs2 billion due to fraudulent payments, irregular utilisation of Public Sector Development Program (PSDP) funds, over staffing, and unauthorised deposits of PR earning into private banks.
On account of the above observations, the AGP has advised the PR management to effectively control PR-owned lands by taking required legal action against the encroachers. Reinforced recovery policy for speedy realisation of receipts such as lease and rental charges. Investigate incidents such as excess consumption of fuel and take remedial measures. Well-planned procurement policy along with the execution of works is also required to avert financial losses, theft, embezzlements and fraud like incident thoroughly investigated with fixing responsibility on the relevant officials.
The AGP has also advised the PR’s top management to take timely disciplinary actions against the person involved in the non-production of record, must immediately stop depositing the PR’s earning in private banks, strictly observe PPRA rules, replace substandard material, improve management, ensure disposal of PR scrap, and strengthening of management and financial control.
Copyright Business Recorder, 2022
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