ISLAMABAD: The Auditor General of Pakistan (AGP) raised observations about the financial irregularities of the Capital Development Authority (CDA) amounting to Rs95.9 billion.

According to the audit report 2022-23, the audit observed these irregularities for the financial year 2021-22 which also includes recoveries of Rs9.2 billion.

The report further observed that the amount of audit observations exceeds the amount audited due to non-budgetary issues like award of works which involve future spending, amount covering multiple previous years of spending, multiple reckoning of monetary impact in different audit observations pertaining to same transaction, etc.

Most of the irregularities are related to procurement/award-related irregularities which are Rs32.7 billion, execution of works, contract agreement amounting to Rs4.1 billion and management of accounts in commercial banks, which is around Rs13.6 billion, revenue management Rs24.6 billion, value for money and service delivery issues Rs12.5 billion, whereas, other irregularities amounting Rs8.4 billion.

The report further observed that the CDA neither prepared balance sheet, accounts/financial statements of the authority nor the balance sheet together with accounts/financial statements got certified by two Chartered Accountants and submit their report to the federal government in violation of the provisions of the CDA Ordinance, 1960.

The CDA audit reports for 1985-86, 1987-88, 2020-21, 2021-22, and five Special Audit Reports for the year 2017-18 have not been discussed by the PAC till the finalisation of this audit report.

Copyright Business Recorder, 2023