General election 2013: financial irregularities in purchase of ink, magnetised stamp pads unearthed

The Auditor General of Pakistan (AGP) has unearthed regularities in expenditure on purchase of indelible ink and magnetised stamp pads for use in General Election 2013 and recommended that matter may be investigated for making purchases in violation of rules.
The AGP in its audit report for year 2013-14 stated that rules 12(2) of Public Procurement Rules, 2004 states that all procurement opportunities over two million rupees should be advertised on the Authority's website as well as in other print media or newspapers having wide circulation. The advertisement in the newspapers shall principally appear in at least two national dailies, one in English and the other in Urdu.
Rule 20 of Public Procurement Rules, 2004 states that procuring agencies shall use open competitive bidding as the principal method for the procurement of goods, services and works. The management of Election Commission of Pakistan issued a work order for an amount of Rs 160.103 million including transportation charges of Rs 2.914 million to Pakistan Council for Scientific and Industrial Research (PCSIR), Karachi, for supply of indelible ink (Vials) and magnetised stamp pads for use in General Elections-2013.
Audit observed that the work was awarded without calling open tenders. Audit is of the view that the government was deprived of the benefit of competitive rates. The management did not reply. The PAO was informed on 21.11.2013, but Department Account Committee (DAC) was not held till the finalisation of the report. The audit recommends that matter may be investigated for making purchases in violation of rules.
The AGP also pointed out unauthorised expenditure on purchase of un-inked pads worth Rs 7.5 million and contract was awarded to PCSIR, Karachi, without following public procurement rules. The AGP also elected unauthorised payment of Election Allowance @ 20% of running basic pay of Rs 3.250 million. The audit was of the view that the allowance was irregular and unauthorised.
The AGP also found out wasteful expenditure on procurement of screened-off compartments of Rs 29.667 million. The management of ECP procured 46,500 screened-off compartments @ Rs 638 per unit from M/s BMITCO, Islamabad on 10.04.2013. The audit observed that the actual requirement of screened-off compartments for General Election-2013 worked out by the management of ECP was 237,003. At the time of procurement the management already had a stock of 242,112 screened-off compartments in store.
The audit is of the view that the procurement of a additional 46,500 screened-off compartments was carried out in the presence of available stock, which was already in excess of the actual requirement. The AGP recommended that responsibility may be fixed for purchase in excess of the actual requirement, which resulted in a loss to the government.