AGL 39.94 Decreased By ▼ -0.06 (-0.15%)
AIRLINK 128.50 Decreased By ▼ -0.56 (-0.43%)
BOP 6.84 Increased By ▲ 0.09 (1.33%)
CNERGY 4.70 Increased By ▲ 0.21 (4.68%)
DCL 8.55 No Change ▼ 0.00 (0%)
DFML 41.22 Increased By ▲ 0.40 (0.98%)
DGKC 82.60 Increased By ▲ 1.64 (2.03%)
FCCL 33.05 Increased By ▲ 0.28 (0.85%)
FFBL 73.85 Decreased By ▼ -0.58 (-0.78%)
FFL 11.91 Increased By ▲ 0.17 (1.45%)
HUBC 109.51 Decreased By ▼ -0.07 (-0.06%)
HUMNL 14.26 Increased By ▲ 0.51 (3.71%)
KEL 5.26 Decreased By ▼ -0.05 (-0.94%)
KOSM 7.66 Decreased By ▼ -0.06 (-0.78%)
MLCF 39.20 Increased By ▲ 0.60 (1.55%)
NBP 64.11 Increased By ▲ 0.60 (0.94%)
OGDC 193.25 Decreased By ▼ -1.44 (-0.74%)
PAEL 25.63 Decreased By ▼ -0.08 (-0.31%)
PIBTL 7.33 Decreased By ▼ -0.06 (-0.81%)
PPL 154.00 Decreased By ▼ -1.45 (-0.93%)
PRL 25.47 Decreased By ▼ -0.32 (-1.24%)
PTC 17.44 Decreased By ▼ -0.06 (-0.34%)
SEARL 78.30 Decreased By ▼ -0.35 (-0.45%)
TELE 7.74 Decreased By ▼ -0.12 (-1.53%)
TOMCL 33.50 Decreased By ▼ -0.23 (-0.68%)
TPLP 8.39 Decreased By ▼ -0.01 (-0.12%)
TREET 16.37 Increased By ▲ 0.10 (0.61%)
TRG 56.75 Decreased By ▼ -1.47 (-2.52%)
UNITY 27.50 Increased By ▲ 0.01 (0.04%)
WTL 1.38 Decreased By ▼ -0.01 (-0.72%)
BR100 10,539 Increased By 94 (0.9%)
BR30 31,128 Decreased By -61.3 (-0.2%)
KSE100 98,411 Increased By 613 (0.63%)
KSE30 30,707 Increased By 226.6 (0.74%)

The Accountant General of Pakistan (AGP) has detected a huge losses of Rs 1188.09 million in fifteen cases due to supply of defective wheat, unnecessary payment, purchase of wheat at higher rate, auction of damaged wheat, non-deduction of income tax from suppliers, less realization of cost and payment of interest on loans during 2014-15 by the Food Department of Khyber Pakhtunkhwa, said Audit Report 2015-16 of the provincial accounts. The Audit Report of Khyber Pakhtunkhwa Departments for the 2015-16 has been presented in the provincial assembly and the Speaker has referred it to the Public Accounts Committee (PAC).
The first case of the loss to the tune of Rs 393.48 million has been noticed due to the supply of defective wheat during financial year 2014-15, in the office of Storage & Enforcement Officer, Peshawar that a contractor has lifted PASSCO wheat dispatched from Mulsi Ahmad Pur, Vehari and some other stations which were received mixed with mud and sand and was not a quality wheat as was reported by the AFC PRC Peshawar to the S&EO Peshawar on 3.12.2013 and also directed the contractor to dispatch quality wheat from the destination. The record however is silent about the replacement or otherwise of wheat. Audit held that recovery or replacement of the mixed wheat was required to have been made from the contractor which was not done. This resulted into an approximate loss of Rs 393.48 million to the public exchequer even if it is presumed that 25% of the wheat was defective. The occurrence of the loss has been attributed to non-adherence to the orders issued by the office itself and weak internal controls.
The irregularity was pointed out in September 2015 and the management replied that reply will be furnished later on. The Audit requested the department repeatedly for holding of the Departmental Accounts Committee (DAC) meeting, however the DAC meeting was not convened till the finalization of the audit report. The audit has recommended the matter for investigation, fixing responsibility and recovery of loss.
The second case of the loss of Rs 221.01 million to the public exchequer was detected due to unnecessary payment of interest. During the financial year 2013-14, in the office of Director Food, Khyber Pakhtunkhwa Peshawar, it was noticed that Food Department Peshawar had a deposit of an amount of Rs 5.00 billion in an account with the State Bank of Pakistan.
But, a loan of Rs 7.57 billion was taken from Bank of Khyber at interest rate of 11.19% p.a. to purchase 500,000 M Tons wheat from PASSCO. Thus government paid an interest of Rs 221.01 million, resulted in loss. The matter was pointed in January 2015 and the management replied that the arrangements of loans from commercial banks under commodities, operation and finance (COF) is in vogue throughout the country and without this the local wheat procurement is almost impossible which is more beneficial for the government as we have purchased the local wheat @ Rs 30,000 per ton as compared to Rs 38,120 per ton from PASSCO. The irregularity was admitted and nothing was said about the available amount in the Account maintained in the State Bank of Pakistan, Peshawar.
The matter was discussed in the DAC meeting held in July, 2015. DAC directed that record may be got verified from audit within 30 days. No further progress was intimated till finalization of the audit report and the audit.
The third case f the loss of Rs 202.08 million was occurred due to the purchase of wheat at higher rate. During financial year 2014-15, in the office of Director Food Khyber Pakhtunkhwa it was noticed that two different summaries were submitted to the Chief Minister regarding purchase of 100,000 m.tons wheat from PASSCO Punjab and 50,000 m.tons from Food Department, Government of Punjab. In two summaries two different rates were inserted, one @ Rs 35,000 per m.ton with cost of bag @ Rs 992 per m.ton from Food Department Punjab with total cost of Rs 35,992 per M ton. In case of purchase from PASSCO though the cost of wheat was Rs 30,000 per m.ton, but an amount of Rs 8012.78 per M.ton was included as incidental charges (cost of bag @ Rs 1,11104 and other incidentals @ Rs 6,901.74 per m.ton with total cost of Rs 38,012.78 per M ton, which was clearly showing that on one hand the cost of wheat of Food Department Punjab was higher than the cost of wheat of PASSCO, but it had included higher rate of empty gunny bag and included unnecessary incidentals. The cost of PASSCO wheat was Rs 202.78 per m tons higher than that of Food Department Punjab. The difference in the paid rate of cost of wheat and higher rate of bag with incidental charges put the provincial exchequer into a loss of Rs 202.08 million. The audit report has attributed the occurrence of loss due to non-adherence to the provision of rules and wheat financial management. The irregularity was pointed out in August 2015 and the management replied that Food Department Punjab was originally not interested to sell wheat to Khyber Pakhtunkhwa and the purchase was materialized on the intervention of the Chief Minister. Despite repeated requests, the department could not convened DAC meeting and the audit has to recommend the matter for investigation and fixing of responsibility, besides, streamlining the procurement procedure.

Copyright Business Recorder, 2018

Comments

Comments are closed.