12-26-2008, 08:17 AM
By Ijaz Kakakhel
ISLAMABAD: The Auditor General of Pakistan has unearthed Rs 9.739 billion irregularities in the accounts of Pakistan Railways (PR) for the year 2005-06 in its Audit Report for the year 2006-07.
According to the report, the financial position of the PR is deteriorating year after year and it is loosing its competitiveness. Resultantly, the PR sustained a net loss of Rs 9.187 billion during 2005-06 as compared to Rs 3.234 billion in 2004-05, thus registering an increase of 184 percent.
Due to scarce resources, audit coverage was restricted to about 20 percent of total expenditure incurred by Pakistan Railways.
The report identified irregularities amounting Rs 9.643 billion due to illegal and unjustified inclusion of 41 acres of prime land in the lease-deal. It also identified the non-collection of Rs 68.375 million. Other irregularities identified was the loss of Rs 25.660 million due to non-recovery of value of building material of 32 bungalows demolished before handing over the land to the lessee. The audit report suggested that the Principal Accounting Officer (PAO) had to take measures to strengthen the contract management.
Despite having full-fledged material procurement and management departments the procurement of unnecessary/defective materials valuing Rs 26.293 million was noticed. Negligence in processing of imported material caused loss amounting to Rs 8.198 million. Further material valuing Rs 34.167 million is lying unutilised for a period ranging from 5 to 36 years The PAO should fix responsibility for loss in procurement of defective/unnecessary material and adopt measures to prevent recurrence, the Audit Report added.
Despite of the fact that financial position of PR was deteriorating with the passage of time it failed to recover rental charges amounting to Rs 14.517 million. Railways sustained loss of potential earning amounting to Rs 29.357 million due to detention of rolling stock. The staff was paid unjustified overtime allowance amounting to Rs 8.702 million. The PAO should make arrangements to realise all outstanding dues, streamline the provision of rolling stock to avoid unnecessary detention and plug irregular payments of overtime allowance, the report maintained.
Rental charges amounting to Rs 1.465 million were misappropriated by issuing fake receipts. A high-powered inquiry committee has categorically established and proved the fraud and recommended disciplinary and criminal action against the defaulters The PAO should initiate action to recover the embezzled amount and take disciplinary proceedings against accused as per inquiry recommendations. Internal controls that prevent a recurrence of such leakages need to be put in place.
The report further revealed that the PR failed to protect its interest and utilise its resources judiciously as it sustained loss amounting to Rs 51.38 million due to short-receipt of high speed diesel oil loss amounting to Rs 7.892 million due to non-availing the exemption from taxes and could not utilise furnaces oil valuing Rs1.5 million for a long time rendering it unfit for consumption. The PAO should strengthen internal controls regarding assets management.
The PR had undertaken construction of an underpass costing Rs 18.954 million out of its own funds although it was the need and responsibility of provincial/local government. The PAO should ensure that no such work was undertaken in future, the report stressed.
http://www.dailytimes.com.pk/default.asp...2008_pg5_1
ISLAMABAD: The Auditor General of Pakistan has unearthed Rs 9.739 billion irregularities in the accounts of Pakistan Railways (PR) for the year 2005-06 in its Audit Report for the year 2006-07.
According to the report, the financial position of the PR is deteriorating year after year and it is loosing its competitiveness. Resultantly, the PR sustained a net loss of Rs 9.187 billion during 2005-06 as compared to Rs 3.234 billion in 2004-05, thus registering an increase of 184 percent.
Due to scarce resources, audit coverage was restricted to about 20 percent of total expenditure incurred by Pakistan Railways.
The report identified irregularities amounting Rs 9.643 billion due to illegal and unjustified inclusion of 41 acres of prime land in the lease-deal. It also identified the non-collection of Rs 68.375 million. Other irregularities identified was the loss of Rs 25.660 million due to non-recovery of value of building material of 32 bungalows demolished before handing over the land to the lessee. The audit report suggested that the Principal Accounting Officer (PAO) had to take measures to strengthen the contract management.
Despite having full-fledged material procurement and management departments the procurement of unnecessary/defective materials valuing Rs 26.293 million was noticed. Negligence in processing of imported material caused loss amounting to Rs 8.198 million. Further material valuing Rs 34.167 million is lying unutilised for a period ranging from 5 to 36 years The PAO should fix responsibility for loss in procurement of defective/unnecessary material and adopt measures to prevent recurrence, the Audit Report added.
Despite of the fact that financial position of PR was deteriorating with the passage of time it failed to recover rental charges amounting to Rs 14.517 million. Railways sustained loss of potential earning amounting to Rs 29.357 million due to detention of rolling stock. The staff was paid unjustified overtime allowance amounting to Rs 8.702 million. The PAO should make arrangements to realise all outstanding dues, streamline the provision of rolling stock to avoid unnecessary detention and plug irregular payments of overtime allowance, the report maintained.
Rental charges amounting to Rs 1.465 million were misappropriated by issuing fake receipts. A high-powered inquiry committee has categorically established and proved the fraud and recommended disciplinary and criminal action against the defaulters The PAO should initiate action to recover the embezzled amount and take disciplinary proceedings against accused as per inquiry recommendations. Internal controls that prevent a recurrence of such leakages need to be put in place.
The report further revealed that the PR failed to protect its interest and utilise its resources judiciously as it sustained loss amounting to Rs 51.38 million due to short-receipt of high speed diesel oil loss amounting to Rs 7.892 million due to non-availing the exemption from taxes and could not utilise furnaces oil valuing Rs1.5 million for a long time rendering it unfit for consumption. The PAO should strengthen internal controls regarding assets management.
The PR had undertaken construction of an underpass costing Rs 18.954 million out of its own funds although it was the need and responsibility of provincial/local government. The PAO should ensure that no such work was undertaken in future, the report stressed.
http://www.dailytimes.com.pk/default.asp...2008_pg5_1