AGP detects Rs 390.6 million of irregularities in CAA

Auditor General of Pakistan has detected a total of Rs 390.6 million of irregularities, embezzlements and non-recoveries in Civil Aviation Authority (CAA). According to Audit Report 2008-09 on the Accounts of Civil Aviation Authority (CAA), the Airport Manager, Allama Iqbal International Airport, CAA, Lahore could not recover dues from two licensees of advertising boards for Rs 111.1 million while they were running their business even after expiry of the contract on May 15, 2008.
"The authority neither ceased the possession after expiry of contract period nor forfeited security deposits whereas dues had accumulated for 10 months. Non-adherence of agreement clauses resulted in unauthorised occupation and non-recovery of dues of Rs 111.1 million", the report revealed. In another case, the audit pointed out non-recovery of Rs 41.3 million.
According to report, the Chief Commercial and Marketing Officer, CAA issued letter of award to M/s Trade Development Authority of Pakistan in respect of 16 acres of land at Rs 8,000 per sq. yard on lease for thirty years on July 4, 2007. The report added that after a period of about one and half years, the lessee could deposit only Rs 185.9 million against the required amount of Rs 227.2 million. Negligence of CAA authority resulted in non-recovery of Rs 41.3 million.
Similarly in another case, the Airport Manager, Allama Iqbal International Airport, CAA, Lahore did not recover an amount of Rs 17.4 million and $27,357 from 19 licensees. The audit report says that nine licensees had wound up their business at airport by leaving their dues in balance for Rs 2.1 million while others were still running their business without paying dues.
The CAA also faced the loss of 128.6 million due to overpayment for purchase of land at higher rates. The report said that the Project Director, New Islamabad International Airport, CAA authority has acquired 345 kanal land in Chak Fattu through an agent, ie M/s RV Enterprises at Rs 475,000 per kanal against the announced rate of Rs 102,272 per kanal duly approved by the Land Acquisition Collector.
The purchase of land at higher rate resulted in overpayment of Rs 128.6 million, the audit report stated. Similarly, CAA has lost Rs 54.9 million due to non-adopting of prescribed policy/delay in tendering and non-observance of policy. The report added that the organisation has also faced the loss of Rs 12.7 million due to irregular award of open space.