Auditor General of Pakistan (AGP) has detected embezzlements, irregularities and mismanagement of more than Rs 20.7 billion in Pakistan Post Office (PPO) department. According to Audit Report-2011-12, the AGP observed 16 cases of irregular expenditure/payment worth Rs 2.29 billion while 21 cases of recovery of Rs 1.683 billion were pointed out.
Similarly, lack of internal controls involving Rs 14.688 billion was indicated in four cases along with three cases of fraud and misappropriation of public money amounting to Rs 189.721 million were reported. The AGP also pointed out Rs 3.939 million loss in one particular case. While commenting on budget and accounts of the PPO, the report says that the financial statements reflected a deficit of Rs 1.89 billion between the actual revenue and expenditure during 2010-11 because the department could not manage to keep the expenditure within the authorised grant limit.
The report further says that Consolidated Postal Receipts (CPRs) and Consolidated Treasury Receipts (CTRs) amounting to Rs 12.779 billion and Rs 16.54 billion respectively remained unverified at the end of financial year 2010-11 rendering the accounts unreliable and simultaneously enhancing the possibility of loss/fraud.
In one case, the report says that no verification/reconciliation was made of CTRs-Rs 6.266 billion and CPRs-Rs 5.99 billion. According to details, in as many as six GPOs, the CTRs and CPRs amounting to Rs 6.266 billion and Rs 5.99 billion respectively for the financial year 2010-11 were not got verified from the Federal/District Treasury Officers. As the verified figures were not sent to DA PPO timely, the reconciliation/adjustment through Exchange Account was not carried out by DA PPO.
The management replied that the CTRs and CPRs would be got verified and produced to audit for verification. The reply was not acceptable as no record was produced to audit for verification, the report added. In the DAC meeting held on December 26,2011 directed the management to ensure timely verification/ reconciliation by GPOs for submission to DA PPO on prescribed date. The CTRs/CPRs involved be got verified from Treasury Offices concerned, a certificate from DA PPO be obtained and produced to audit for verification. But no progress was intimated till finalisation of the report.
In another case, the report says money orders of Rs 1.48 billion were not paid and their reconciliation was not also made. In 10 formations of PPO Department, 548,211 numbers of BISP Money Orders (MOs) of Rs 1.48 billion remained unpaid. These unpaid MOs were retained and not intimated to BISP management for reconciliation/adjustment up to May 2011 whereas the amount of these MOs and commission earned thereon was already taken into account.
Audit observed that in the procedure for BISP MOs, there was no role of DA PPO in compilation and reporting of BISP MOs payments. In case of ordinary MOs paid, vouchers were sent to Director Accounts (DA) PPO Lahore by PPO formations whereas in case of BISP MOs, only the figures were sent. Hence, there was no assurance of incorporating the correct figures in the final accounts of the Department and risk of unreliability, embezzlement cannot be ruled out. The management replied that unpaid amount had been reconciled/adjusted vide BISP letter dated 13.12.2011.
The reply was not acceptable as no evidence was provided to audit for verification. The management should devise a mechanism to send vouchers in support of the payment made under the scheme to DA PPO Lahore as well as to the BISP authorities. DAC held on 26th December, 2011 directed the management to produce the record of reconciliation/adjustment to audit for verification. But no progress was intimated till the finalisation of this report. Similarly, there were many cases of embezzlements and misappropriations were mentioned in the audit report.