The Auditor General of Pakistan (AGP) has detected three cases of irregular investment amounting rupees 6335.75 million in the public sector enterprises (PSEs) of Khyber Pakhtunkhwa. According to the report for Audit Year 2014-15, the management of the Hydel Development Fund (HDF) invested a fund of Rs 30.51 billion in treasury bills/banks during the years, 2010 and 2011 on case-to-case basis without recommendations of the Investment Committee and approval of the Hydel Development Fund's Board of Directors.
The case regarding investment was presented as agenda item No III for grant of ex-post facto approval for investment/reinvestment of Rs 30.515 billion by the investment committee. That committee in its meeting in September 2011 accorded ex-post facto approval for regularisation of the said investment. The action taken by the investment committee was invalid because according to the rules, the Board of Directors of HDF was the competent authority to allow said investment.
The matter was reported to the management on September 01, 2014. In second case, the Sarhad Hydel Development Organisation (SHYDO) irregularly released a fund of Rs 5,966.75 million in violation of the HDF Rules 2003. The audit observed that management of Hydel Development Fund released the amount to Irrigation and Power Department/SHYDO for execution of project during 2001-02 to 2012-13. The Board of Directors of Hydel Development Fund was constituted through an ordinance No XXVI of 2001. The schemes/projects were approved by the SHYDO Board of Directors in various meetings.
The SHYDO management was required to submit these schemes for approval by Hydel Development Fund's Board of Directors as required under the specific rules. The SHYDO management however, failed to do so and instead, demanded funds for projects which were released by the Hydel Development Fund. Furthermore, exercise regarding feasibility and evaluation of the project was not carried out by HDF before release of funds. These funds were released irregularly in violation of HDF Ordinance 2001 and HDF Rules 2003.
The irregularity was reported to the management in September 2014 and the management in its reply in December 2014 stated that funds were released by the Finance Department after approval of the schemes by Provincial Development Working Party (PDWP), Executive Committee of National Economic Council (ECNEC).
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