Kalash women centers: AGP detects over Rs 51 million malfeasances

The Auditor General of Pakistan (AGP) has detected irregularities, embezzlement and mismanagement of over Rs 51 million in the accounts of "Construction of 10 Bashalanis (women centers) in Kalash Valley District Chital" Khyber Pakhtunkhawa.
According to Special Audit Report 2010-11, the AGP revealed irregularities and embezzlement of; (i) unauthorised award of contract of Rs 19.619 million, (ii) Loss of Rs 5.157 million to the public exchequer by advance payment without completion of work, (iii) Non recovery of interest on advance payment Rsl.237 million, (iv), Non-execution of contract agreement on standard form resulting in non-recovery of work delaying charges Rs 1.962 million, (v) Unauthorised payment without obtaining security Rs 5. 157 million, (vi) Unauthorised approval of the PC-1 without specification of site of Bashalani Rs 19.619 million, (vii) Unauthorised expenditure of Rs 3.649 million on payment without PC-1 administrative approval and advertisement through press, (viii) Overpayment by allowing higher item rates Rsl.936 million, (ix) Unauthorised expenditure on items without provision in PC-1 Rs 1.889 million, (x) Unauthorised expenditure without technical sanction Rs 8.806 million, (xi) Unauthorised opening of bank account involving receipt of Rs 9.736 million, (xii) Unauthorised deposit of Rs 1.837 million in the project account, (Xiii) Non-reconciliation of receipt and expenditure Rs 9.736 million and (xiv) Non-maintenance of cash book for receipt and disbursement Rs 9.736 million.
The AGP has also recommended to the authorities to overcome irregularities and accelerate the pace of work and complete the schemes at an early date. The AGP also said that deviation made in implementation of schemes over and above the approved cost sharing indicated in the PC-1, need to be investigated.
The AGP recommended that training of staff on management of financial affairs capacity building and strengthening of supervisory capacity at Drawing and Disbursing Officer (DDO) level. It is recommended that the Principal Accounting Officer also need to take immediate steps; (i) deposit to the government treasury the funds kept outside the government account by the departmental functionaries and fix responsibility after taking disciplinary action. (ii)Investigate cases of losses and non-accounting of cash as pointed out in the report, to take necessary remedial/preventive measures. (iii) Training of staff management of financial affairs. The AGP also said that finance department also need to take cognisance of the failure of the internal controls and take effective steps to prevent recurrence of such violations/irregularities.