The Auditor-General of Pakistan (AGP) has unearthed irregularities worth Rs 1927.4 million in the National Highway Authority (NHA) due to over-payments, unjustified payments/wasteful expenditure, unauthorised reimbursement of fine shares, non-recovery, undue benefit and misappropriation of receipts.
The AGP in its audit report on the account of government of Pakistan civil works, NHA, Civil Aviation Authority (CAA) and NAPWD Audit for year 2007-08 detected that due to overpayments the authority suffered a loss of Rs 640.1 million. The authority suffered a loss of worth Rs 153.8 million on account of overpayment of inadmissible escalation.
The NHA (Project Director, RYK-TMP Bahawalpur section -I &II), enhanced the adjustable portion from 40 percent to 45 percent and revised the factor 'C' of high speed diesel from 0.10 to 0.18 while no increase in adjustable portion was admissible pursuant to subsequent clarification/withdrawal of letter by Planning Commission.
The authority suffered a loss of Rs 103.6 million on account of unjustified price escalation. The NHA (Project Director, Okara Bypass Project) made amendment No 3 on April 6, 2005 during currency of the contract for making provision for price escalation. The post-bid amendment was contrary to the contract stipulations. This resulted in overpayment of Rs 103.6 million.
Uncalled for increase in factor- 'C' of the National Highway Improvement Programme, which was outside the contract agreement, resulted in overpayment on account of price escalation amounting to Rs 87.8 millions. Due to non-deduction of cost of stone used in structure work of Islamabad-Muzaffarabad Carriageway project the contractor was over paid to the tune of Rs 75.4 millions.
The report further states that the unauthorised amendment in contract caused excess payment of amount Rs 48.2 million. Due to re-fixation of rates the authority suffered a loss of worth Rs 23.4 millions. Due to non-deduction of cost of excavation for stone consuming item the authority paid Rs 21.5 millions.
Due to inadmissible escalation the authority suffered a loss in shape of overpayment of Rs 13.5 million, Rs 11 million on payment of escalation on the basis of deleted items, Rs 8.8 million on taking higher values of factor "C", Rs 7.8 million on higher rates, Rs 2.6 million on non-adjustment of rates, Rs 2 million on allowing payment against free of cost item, Rs 1.8 million on separate payment of inbuilt items, Rs 1.7 million on less deduction of rate, Rs 1.3 million on non-adjustment of rates, Rs 1.2 million on application of incorrect base rate, and Rs 1.1 million on non-adjustment of quoted rates.
The report further detected that due to unjustified payment /wasteful expenditure, the authority suffered a loss of Rs 570.5 million. It includes Rs 200 million on account of seed money, Rs 123.9 million on account of defective design and Rs 33.5 million on excess payment for inbuilt items, Rs 88.7 million on failure of road, Rs 62.1 million on account of rectification work, Rs 53.1 million on deletion of toll plaza from approved contract, Rs 5.9 million on unjustified payment and Rs 3.3 million on unjustified appointment of project co-ordinator.
The report further detected that the authority has suffered a loss of worth Rs 531.7 million due to unauthorised reimbursement of fine shares to National Highway and Motorway Police. The Authority suffered a loss of Rs 150.8 million due to non-recovery.
It includes Rs 88.6 million on account of cost difference, Rs 25.3 million on cost of rent and royalties from the contractor, Rs 12.3 million on cost difference, Rs 11.7 million on non-implementation of contract clause and Chairman NHA orders, Rs 10.7 million on non-realisation of right of way receipt from the filling and CNG station and Rs 2.2 of fine and overheads as per provision of contract. The authority suffered a loss of Rs 28 million due to excessive measurement. Due to non-implementation of approved set-up of Road Asset Management Department (RAMD) misappropriation of receipts amounted to Rs 6.3 million.
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