AGP detects Rs.526.1 million misappropriation in KP's education department

The Auditor General of Pakistan (AG) has detected misappropriation to the tone of Rs526.107 million in the accounts of the Education Department of Khyber Pakhtunkhwa, said audit report on the accounts of KP Department.

The report conducted on the accounts of the provincial government of the financial year 2015-16 was conducted during the financial year 2016-17 and the report has been tabled in the provincial assembly that had referred it to the Public Accounts Committee (PAC) of the house. The KP PAC is headed by the Speaker of the provincial assembly.

The highest case of misappropriation amounting to Rs491.081 million was noticed during the financial years 2014-16, in the Abdul Wali Khan University Mardan. The local administration has received a cheque worth Rs468,589,000 from the District Controller of Accounts, Mardan under Annual Development Programme (ADP) scheme.

It was noticed that the credit of the said amount appeared in the statement of the bank account after the lapse of the complete financial year and through transfer. The record showed that profit of Rs44,047,366 was earned out of which Rs21,555,094 was accounted for, the where about of the balance profit of Rs22,492,272 is not known.

The entire release amount of Rs468,589,000 was invested in the TDRs for earning profit for two terms of six months each. The funds released by the government were meant for the expenses on the developmental activities and its investment in TDRs was the violation of rules.

This action of the local administration was not covered under the financial rules and termed as misappropriation of the public funds.

The lapse occurred due to non adherence to rules, financial indiscipline and weak internal controls that resulted into misappropriation of Rs491,081,272. When pointed out in November 2016, the management stated that a detailed a reply would be given later.

The audit requested the department repeatedly, through DO letters for holding of the Departmental Accounts Committee (DAC) meeting. However, DAC meeting was not convened till finalization of the report that had prompted the audit to recommend investigation into the matter, fixing responsibility and taking of appropriate action against those responsible.

The second case of misappropriation to the tone of Rs13.140 million was observed in the office of the Secretary, Elementary and Secondary Education KP during the financial year 2014-15 wherein 2,527 tablets were purchased from M/s Rockville for onward distribution amongst 100 selected schools of male and female in 25 districts of the province.

On scrutiny of stock register, the PC tablets were less issued to the District Education Officer (DEO) Male/Female while signatures for all receipts were taken in the blank spaces of stock register. The lapse was occurred due to weak internal controls.

When pointed out in the June 2016, it was stated that detailed reply would be submitted after consulting the record. The audit requested the department repeatedly for holding the DAC meeting, however neither DAC meeting was convened nor any progress intimated in this regard. Therefore, the audit has recommended the conducting of inquiry and fixing of responsibility against those responsible and recovery of the tablets from the concerned as well.

Another case of misappropriation amounting to Rs13,350,000 was reported in the Islamia College University Peshawar during financial year 2013-14 wherein the amount was received in cash by the Head Cashier as dues from students, but not deposited in the bank.

The amount was misappropriated and still not recovered for which the Vice Chancellor has constituted committee to probe into the matter. The lapse occurred due to financial indiscipline and weak internal control and when pointed out in August 2013, the management stated that a committee has already been constituted and the recommendations will be shared with the audit.

In the DAC meeting held in December 2016, the department stated that an inquiry is under process and results will be intimated to audit accordingly. DAC decided that results of the inquiry will be intimated to audit. However, till finalization of the report no progress was intimated.

In fourth case of misappropriation, the Islamia College University Peshawar during financial year 2013-14 collected an amount of Rs2,840,000 as private hostel charges from female students of the University's 2nd shift, were paid to M/S Imperial Electric Co Peshawar for the purchase of generator.

But it was observed that the purchase of generator was neither taken on stock nor issued to the private hostel acquired for female students. Thus, Rs2,840,000 collected as private hostel charges were misappropriated.

When pointed out, the management replied that a committee will be constituted to probe into the matter. The management again repeated the same reply in the DAC meeting held in December 2016 and the fixing of responsibility against the persons at fault. But, no progress was intimated.

Copyright Business Recorder, 2019