The Auditor General of Pakistan (AGP) has detected irregularities, mismanagement, and internal weaknesses costing the exchequer of over Rs 45 billion in accounts of the National Highway Authority (NHA) during 2014-15. The audit report on the accounts of NHA for year 2014-15 raised 39 audit objections on the NHA''s accounts; and nine relate to irregularities and non-compliance, three on performance and 27 on internal control weaknesses in the Authority.
Irregularities and mismanagement include: (i) irregular/unauthorised amendment in the approved scope of work without approval of the competent forum, costing up to Rs 10.202 billion; (ii) irregular award of addition works/consultancy beyond original scope without open competition- Rs 9.176 billion; (iii) grant of additional mobilization advance through post-bid amendment- Rs 1.46 billion, (iv) irregular award of works amounting to Rs 564 million; (v) loss due to award of works on higher rates - Rs 226 million; (vi) irregular payment on account of differential cost of kerb stone - Rs 17 million; and (vii) wasteful expenditure due to deviation from standard design of toll plaza- Rs 10.63 million.
The AGP report further states that poor condition of national highways in Sindh province despite huge expenditure is resulting in fatal road accidents. Unauthorised /irregular grants of extension of time in aided projects and loss due to payment of escalation due to extension in time was estimated at Rs 7.4 billion.
Internal control weaknesses caused losses to the tune of Rs 14 billion to the Authority including: (i) overpayment of price escalation-Rs 2.67 billion; (ii) non-recovery of defective/substandard work from the contractor - Rs 1.287 billion; (iii) wasteful expenditure due to taking over of defective/ substandard work without rectification/completion of work- Rs 953.8 million; (iv) non-recovery/inadmissible payment on account of below specification material supplied from un-approved quarry- Rs 399.35 million; (v) non-recovery on account of execution of below specification work- Rs 297.58 million; (vi) inadmissible payment of employer''s contingencies to the contractor- Rs 348.25 million; (vii) overpayment due to non-revision of rates of quantities executed more than 25 percent - Rs 279.97 million; (viii) non-adjustment of cost effect against Bank Guarantees - Rs 190.94 million; (ix) award of work at higher rates without evaluation of rates - Rs 178.57 million; (x) loss due to deletion of cheaper item - Rs 106.47 million; (xi) overpayment due to non-recovery of below specification work and poor workmanship - Rs 104.36 million; (xii) non-recovery on account of rectification works - Rs 79.59 million; (xiii) non-imposition and recovery of Liquidated Damages due to delay in completion of work - Rs 77.57 million; (xiv) overpayment due to measurement of excess width of asphaltic base course - Rs 43.86 million; (xv) irregular amendment in contract agreement - Rs 42 million; (xvi) non-deduction of trimming charges - Rs 37.87 million; and (xvii) overpayment due to execution of work beyond the authorised limit - Rs 32.49 million.
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