Islamabad: Rs1.32t worth of financial misappropriation, irregularities, recoveries and overpayments have been said to be found by the auditor-general of Pakistan (AGP) for companies coming under the water and power ministry during 2016-17.
According to AGP report, which has been put forth before the Parliament and the President, revealed that investigation of public not below the amount of Rs1m spent or received by these entities on “test-check basis” wasn’t considered a conclusive audit.
Only 191 of 263 formations of Water and Power Development Authority (WAPDA) and power-sector entities were covered by this audit.
The report showed that Rs957b weak account financial management, Rs259b of other losses, Rs949m of untenable asset management and Rs103b on account of weak internal controls.
AGP audit report provided major insights which revealed 147 cases of irregular expenditure, violation of rules amounting to Rs171b, 68 cases linked to internal control weaknesses which cost Rs103b.
Eighty-two cases of recoveries and overpayments to the tune of Rs786b were reported, 35 cases linked with negligence and accidents worth Rs252b. And fourteen cases of fraud of public money, misuse of funds and theft worth Rs946m were reported.
According to AGP, one of the major cause of concerns was the non-recovery of subsidies linked to tariff differential from the federal and provincial govts, and refunds of general sales tax were also not being issued.
During 2016-17, the audit report highlighted the failure of the power distribution companies to collect Rs233b from defaulters. It was also disclosed that rules violation had taken place during procurement and consultancy services by several Wapda/Pepco formations.
The report also criticized the lax internal control systems by the audit divisions of power-sector companies which were worsening by the day, as the external audit revealed various deficiencies and control lapses.
AGP report revealed Rs20b of irregular award of contract to a non-responsive bidder for Naulong Dam, Rs39b Naj Gaj Dam, Rs10b loss in Winder Dam and Rs13b loss in Duber-Khawar Hydropower project had been incurred as a result of negligence.
