AGP detects Rs 218.37 million loss in KP Irrigation department

The Auditor General of Pakistan (AGP) has detected a loss amounting to Rs218.378 million in the accounts of the Irrigation Department of Khyber Pakhtunkhwa during financial year 2014-15, said AGP Annual Report 2016-17. The AGP has recommended investigation into the matter for fixing responsibility and recovery of the losses.

The report has already been presented in the provincial assembly that had referred it to the Public Accounts Committee (PAC) of the house. The PAC of the KP Assembly is comprised of the representatives of all parliamentary parties and chaired by the Speaker of the house.

The highest loss of Rs103.802 million was occurred due to non-realization of cost of harvest trees in Irrigation Division Mardan wherein a sum of Rs833,853 was paid to contractors on account of removal of 44 trees from the road side and quantity of 2,964,420 Cft timber obtained that was transported to depot, but the whereabouts of the sale of the proceeds was not made known to audit.

The length of the road is from RD 0-25000 while in the bill only 44 trees were shown to have been extracted/removed against the estimated 3000 trees as Mardan disrrict is rich in the shesham like trees, therefore the quantum of trees would be more or up to valuing Rs53.352 million which was not done.

Similarly, in Irrigation Division No.1 Swabi, Rs672,084 incurred on account of harvesting of 931 trees failing in the alignment of canal patrol road along Chura Minor. However, the timber so obtained from harvesting of these trees was not brought to account and value thereof amounting to Rs50.319 million was misappropriated by the concerned.

The audit has attributed the loss to non-observance of rules and procedures, which resulted in loss of Rs103.802 million. When pointed out, the management furnished no reply and despite repeated requests of audit through management letters and DO letter, for holding of DAC meeting, neither DAC meeting was convened nor any progress have been intimated till the finalization of the report.

The audit has recommended investigation into the matter for fixing responsibility and recovery of the loss from the persons at fault. The case of loss to the tone of Rs69.214 million was occurred in Marwat Canal Irrigation Division, Bannu in the tendering process as according to comparative statement of financial bid lowest responsive bidder was M/S Euro Consultant Associate Consultant whose bid was Rs61.150 million for Phase-I and Rs138.840 million for Phase-II while offer of MS JV BAK& AGES was Rs66.600 million and Rs202.610 million for Phase-I & II respectively. Though the bid of M/S JV BAK & AGES was higher than M/S Euro Consultant Associate Consultant, however, the local office accepted the higher rates which resulted in loss of Rs69.214 million.

The record showed that Rs10.000 million was paid to JV of BAK & AGES consultancy for survey, raising f Baran Dam up to May, 2015 by holding Rs6.650 million from the total claim of Rs16.650 million.

The audit has attributed the loss to the extending of undue benefit to the contractor at the cost of government, which resulted in loss to the public exchequer. However, when pointed out, the management stated that detailed reply would be furnished after going through the record.

Thought the audit requested the department repeatedly, through management letters and DO letters, for holding of DAC meeting, however neither DAC meeting was convened nor any progress intimated that prompted the audit to recommend the recovery of the loss from the persons at fault.

Third loss amounting to Rs15.170 million was occurred in Irrigation Division Charsadda due to non-deduction of voids from earth work in the construction of flood embankment from Keshki to Nowshera Kalan R/S Kabul River.

The contract was awarded to M/S Kasteer International Pvt Ltd with the tender cost of Rs747.000 million. The contactor was paid Rs219.728 million that was also include Rs26.893 million for 'Barrow pit excavation undressed lead up to 50m ordinary soil i/c dressing and leveling earth to design section in 6 inch layers and compaction of earth with power road roller 85 percent max mod AASHTO dry density with an extra lead of 5 kilometer for a quantity of 311,337.60m @ Rs325pm.