The Auditor General of Pakistan has unearthed 431 cases of irregularities, weak internal control systems and financial mismanagement amounting to over Rs 2.2 trillion in Wapda and Pakistan Electric Power Company (Pepco) and its corporate entities including, Central Power Purchasing Agency-Guaranteed (CPPA-G), National Transmission and Despatch Company (NTDC) and Nandipur Power Project during 2016-17.
In Wapda's power and sector wings AGP found 39 cases of overpayments / misappropriation amounting to Rs 76.177 billion, 41 cases of unjustified/irregular payments/expenditures amounting to Rs 66.420 billion, 65 cases of irregularities amounting to Rs 27.790 billion, 36 cases pertaining to others etc amounting to Rs 25.262 billion, five cases of misuse of public funds amounting to Rs 12.247 billion, 6 cases pertaining to weakness of internal control systems amounting to Rs 2.771 billion and one case pertaining to accident/ damage amounting to Rs 1.042 billion.
The AGP's report says that the total auditable expenditure and revenue budget pertaining to Wapda for the financial year 2016-17 under the jurisdiction of Directorate General Audit Wapda was 90.822 billion and Rs 23.612 billion respectively. The Directorate conducted audit of the 95.35 per cent expenditure amounting to Rs 86.602 billion and 100 per cent revenue amounting to Rs 23.612 billion on test check basis in accordance with the audit methodology. Recovery of 15.884 billion was pointed out and recovery of Rs 1.726 billion was admitted at the instance of audit during audit year 2017-18. Recovery was affected from January to December, 2017.
The AGP further pointed out irregular investment of Rs 2 billion from pension reserve funds, unauthentic payment to contractor amounting to Rs 354, generation loss due to forced shutdown of Rs 513 million, loss due to non-indemnification of insurance claim of TBM of Rs356 million, loss due to non-removal of TBM from sit amounting to Rs 7.936 billion, undue favour to due to non submission of enhanced performance security Rs 3.229 billion, excess execution/payment against approved BOQ items of Rs 1.824 billion and non mutation of land property Rs 1.270 billion amounting to over Rs 39 billion.
The Authority did not finalise the financial statements of Water and Wing for the financial year 2016-17 till January 31, 2018. The AGP says that without finalised financial statements, the preparation of annual statements of the estimated receipts and expenditure may involve/ understatement of the financial position of Wapda.
According to the audit report, in power sector 35 cases were related to unjustified/ irregular pays/ expenditures amounting to Rs 813.316 billion, 56 cases of recoveries of amounting to Rs 740.455 billion, 10 cases of weaknesses of internal control systems amounting to Rs 53 billion, 24 cases pertaining to others including accidents, negligence etc amounting to Rs 25.853 billion, 8 cases of embezzlement of public money, theft and misuse of funding amounting to Rs 5.448 billion and two cases of accident/damage amounting to Rs 2.458 billion.
In power sector, three Paras are related to Pepco, two GHCL, 7 paras Genco-1, 15 paras Genco II, 6 paras Genco-III, four paras Genco-IV, six pars Nandipur Power Project, 79 paras NTDC, 24 paras Fesco, 13 paras Gepco, 82 paras Lesco, 30 paras Mepco, 17 paras Pesco, 36 paras Qesco, 24 paras Sepco, three paras Tesco, 16 paras PITC, two paras CPPA-G and one para PPIB.
The AGP's report states that as a result of observations raised by audit and discussion with management, the audited entities realised a need for strengthening internal controls and proceedings. Major issue of non-recovery of tariff differential subsidy from federal government and agriculture subsidy from provincial governments came into the limelight. Non-refund of GST from FBR was also pointed out. On pointing out by audit Discos launched recovery drive for collecting Rs 160.349 billion from defaulters.
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