Non-reimbursement of Rs 103 million by ministry: PAC panel defers audit account for discussion

The sub-committee of the Public Accounts Committee (PAC) Monday deferred an audit account for discussion related to non-reimbursement of Rs 103.238 million by Ministry of National Food Security and Research as secretary of the ministry was not available for response.
The sub-committee meeting, chaired by Rana Afzaal Hussain, examined the audit accounts of various ministries for year 1996-97. The audit report 1996-97 for National Food Security and Research states that the record of the amount was not available for verification of audit. In an audit para, Government of Pakistan released a total sum of Rs 77.8 million as bridge finance through sanction on May 1992 including Rs 68.210 million for the World Bank Project and Rs 9.6 million for OECF Project. The amount was reimbursable to the government. However, the amount was not reimbursed. The Federal Water Management Cell (FWMC) spent Rs 24.9 million on the purchase of equipment, payment of custom duties and taxes, KPT charges, insurance, clearance charges, transportation etc on behalf of provincial executing agencies and donors out of the government of Pakistan assignment account of OECF Project during 1993-97. The expenditure was incurred without sanction of the competent authority and in contravention of the provisions of the PC-1 and project agreement.
The cell spent Rs 176.454 million on payment of custom duties, KPT charges, insurance, clearance charges, transportation charges of vehicles and equipment on behalf of the provinces. The cell showed adjustment of the expenditure except Rs 5.3 million recoverable.
In another case, Rs 5 million were reimbursable from the donors up to June 30, 1997 being 88 percent of the expenditure incurred on management cost out of government of Pakistan assignment account and dollar assignment account of OECF Project and AGPR account. The adjustment account of Rs 4.2 million was still reimbursable. The management intimated that the reimbursement claims were under preparation.
Examining the audit report of Ministry of Kashmir Affair and Gilgit-Baltistan for year 1996-97, the audit pointed out in various depots of civil supply department of Northern Areas under Ministry of Kashmir Affairs and Northern Areas, during 1986 to 1995, a loss of Rs 12.74 million due to shortage of wheat, sugar and salt was pointed out by audit. The shortage of stores was found in the store accounts of supply depots at Nilt, Aliabad, Gulmit, Sust, Sussi, Jaglot and Gilgit. The loss was caused due to theft, pilferage and spillage resulting from negligence and mismanagement and improper control.