Auditor General of Pakistan (AGP) has detected embezzlements, irregularities, corruption and mismanagement of Rs 877.76 million in Pakistan Public Works Department and Estate Offices of Ministry of Housing and Works. The Department is responsible for construction and maintenance of works of the Federal Government while Estate Offices situated at Islamabad, Lahore, Karachi, Quetta and Peshawar are under the administrative control of the Ministry of Housing and Works.
These offices deal with allotment of government-owned accommodations, recovery of rent, etc from the allotees/occupants. Audit Report-2010-11 available with Business Recorder reveals that national kitty faced a loss of 171.6 million due to non-insurance of PCC roads.
The report says that Executive Engineer, Project Civil Division, Batkhela awarded the contract for construction of 10 PCC roads in District Upper Dir but the insurance of works, equipment and full replacement cost were not undertaken. Non-insurance of the works resulted in overpayment to the contractor on account of cost of insurance included in the item rates.
Audit pointed out the irregularities in November, 2010. The department admitted the non-insurance of works was required prior to commencement of the work. In case of their failure in providing insurance cover, action under clause 14.2 of the contract agreement was to be taken.
The audit says that the matter was also reported to the Principal Accounting Officer in December, 2010 but no DAC meeting was convened despite best efforts. The Audit recommended obtaining insurance cover to effect recovery of premium.
In another case, the report says that Rs 71.55 million was lost due to unauthorised acceptance of performance securities. According to details, Executive Engineer, Stores and Workshop Division, Pak PWD, Islamabad accepted performance Bonds/Securities of contracts amounting to Rs 71.55 million from private insurance company instead of National Insurance Corporation. Audit observed that acceptance of performance security of a private insurance company instead of National Insurance Corporation was due to weak financial controls.
The matter was also reported to the Principal Accounting Officer in December, 2010 but no DAC meeting was convened despite best efforts. The Audit Report exposed a loss of Rs 17.62 million due to non-production of record, Rs 27.07 million overpayment due to allowing extra lead, Rs 14.88 million deduction of voids at less than specified rate, Rs 57.69 million award of works without open competition, Rs 21.28 million irregular enhancement of work, Rs 18.61 million irregular award of work over and above the PC-I cost and Rs 18.10 million loss due to splitting a work in two parts.
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